Reportedly Chinese e-commerce platform well known as will collaborate with Meili for purposes of a new fashion e-tail venture, which will be operated as WeChat mini-program. After Chinese New Year the venture will be introduced.

New WeChat Sales Venture of in Partnership with “China’s Pinterest” Meilishuo

The establishment of the venture as WeChat mini-program reflects how important WeChat has become as well how all these three companies have grown.

Tencent, the owner of WeChat, as a major investor in Meili by increasing the stake it already owned Mogujie when Meilishuo was bought out. In fact, it is the largest shareholder, with 20 percent stake in the company. Two companies such as Tencent and are both relies on each other due to the reason that the vast majority of the transaction are made though WeChat Pay, also they do share data in order to target consumers in the more efficient way.

In addition, after Tencent and both invested into the invested in luxury e-commerce platform Vipshop together, the correlation between these companies became even better and closer.

As a result, it is clear that the strategy of joined efforts and forces, it was built up in order to compete Alibaba’s Taobao and TMall in terms of the larger share of Chinese profitable market. Notably, that has also collaborated with Baidu and Walmart. having its own platform seems also to be very determined not to skip the big opportunity to get consumers purchasing directly on WeChat. Among luxury brands this platform is becoming progressively popular, in this sense, the joint venture of Meilishuo and suggests to provide convert excited discussion in terms of the latest items into sales. Comparing to Alibaba’s Luxury Pavilion, which is exclusive to members, WeChat mini-programs can be used by consumers and the whole purchase process will be seamlessly completed.

Chinese Pinterest

WeChat with an image-sharing and online sales site is called as Chinese Pinterest with Interest, in this sense the following questions emerge if it will have a success in Chinese dynamic luxury e-tail space.

It reasonable to mention that JD-Meili joint venture will have ultimate benefit from the collaboration with WeChat. Which seems like a certain vital brands sales channel, that reflects inbuilt payment system well known by Chinese users. In general, WeChat has approximately 900 million active users around the world.

However, some vicious competition, which is coming from WeChat itself, might be experienced by the JD-Meili joint venture.

A new innovation called “brand zone” was launched by WeChat

Last year in December, a new innovation called “brand zone” was launched by WeChat, for each brand, it contains the  “Official Boutique” (官方精品店). Official boutiques have been registered by 12 high-end brands (including Louis Vuitton and Swarovski) within just first two weeks. Regardless of the fact if the WeChat boutique has been already subscribed by the user, the “brand zone” provides the opportunity to search for the brand and find its WeChat store.

The question is which way users will choose to purchase either via the venture’s mini-program or going to the WeChat online boutique directly?

As a result, in order to assure that users will choose the first way of purchasing inside the WeChat it will be required to promote and sustain flourishing, dense community, and some of the excitements should be rapidly transformed into sales. With such investments,, Meili, and Tencent have all of the chances to win.

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