wechat-business.doc

微商，Wechat E-commerce, is a kind of social distribution platform pattern and its based on the Wechat ecology. There are two different types of Wechat E-commerce, one is B2C which is based on the WeChat public account, the other one is C2C which is based on the friends circle. B2C is Business-to-Customer. B2C means the supplier, include manufacturer or company or OBM(Original Brand Manufacturer), they build a uniform Mobile market based on the Wechat public account and provide services directly to consumers. They are responsible for the product management, delivery and after-sales service. A good B2C Wechat E-commerce should include these basic condition. 1. The perfect trading platform. To protect customers and merchants money safe. 2. The perfect social distribution platform(SDP). To manage the market, stock, price, distributors, and customers. 3. The perfect Customer Relationship Management system. To manage, keep and strengthen the relationship with customers and merchants. 4. The perfect after-sales service. To make sure customers and merchants legal rights. The complete SDP should include three parts, supplier, distributor, and 微客. Suppliers include OBMs and manufacturers who have the supply of goods. Distributors are based on the agents and stores, they have the team and place, but no goods. 微客are composed of consumers, fans and buyer.Under the SDP pattern, OBMs and manufacturers have a specific official mobile market, they are responsible for the product management, delivery and after-sales service to the consumers. SDP pattern will help supplier to build a independent backstage supporter for distributor. Every distributor will have a sole QR(quick response) code with parameters. Agents and stores dont need to stockpile and deliver goods, they just need to use different ways to promote the QR code to attract consumers. Once the consumer through QR code to pay attention to this shopping mall, this consumer will belong to this distributor. When customer shopping in the mobile market, the corresponding distributor can get the brokerage. Each consumers can apply to be a 微客, 微客 can share the products link to friends-circle or Qzone, just through this link to buy something, 微客can get the brokerage and SDP will automatically assign the money.C2C is customer-to-customer. Almost everyone can do C2C Wechat E-commerce. C2C is someone to promote their own products in friends-circle. Then through their relatives and friends to propagandize, and recommend others to buy it. Wechat E-commerce TreatyThis treaty had been publiced in Weimob Day and Wechat Business Forum. This forum was held in Guangzhou, March 5, 2015. Sun Taoyong, the CEO of Weimob, put forward 8 rules to regulate Wechat E-commerce development. They are: No violation. No fake and shoddy. No pyramid-selling. Dont raid the market. No stockpile. No excessive profit. Dont bush screen. Dont bully acquaintances.I will compare them from two sides. One is merchant, the other one is consumer.For the merchant, I will mention 3 aspects. Operating condition,Service and Operational risk. Operating condition1. Physical Store should transact Business License, Tax Registration Certificate and other licenses before they open to make sure they can operate without troubles. At present, WeChat E-commerce dont need to transact any license.2. Physical Store should invest much capital in the early time, generally, at least tens of thousands.WeChat E-commerce just need to spend hundreds or thousands yuan, then they can do business. Therefore, lots of students use their pocket money to do WeChat E-commerce.3. Physical Store should concern their supply of goods. Almost have their own settled supply of good, they just need to contact manufacturers at very beginning and wait for manufacturers to deliver goods to their store. Some storekeeper will come to the factory or wholesale market to choose their appropriate goods.WeChat E-commerce can prepare their goods from different places. Because they have limited consumers and market, so they just need to prepare limited goods. Manufacturers cannot deliver few goods to merchant. Therefore, merchant should take goods by themselves.4. Physical Store should rent a storefront and hire some shop assistant to operating a store. WeChat E-commerce dont need to worry about it. They just need a phone. If they did very well and expand the scope of business, they may consider to rent a warehouse and hire some people.Service1. Physical Store can provide a direct communication with consumers. Shop assistant will introduce the specific information to consumers face to face. If consumer have any problem, they can asked it conveniently.WeChat E-commerce can provide a indirect communication with communication. Consumers can not talk with merchant face to face, but consumers can use pictures, sentences or sounds to express their idea.2. Physical Store can provide a direct Sensorial Experience to consumers. 30.8% consumers want to see and feel the color, style, quality and texture of the products. Especially for the clothes, shoes and bags, consumers can try and feel to ensure it is fit for them.Consumers can not have this experience in WeChat E-commerce, they can only through some pictures or introduction to imagine the product.3. Most Chinese consumers are willing to have door-to-door service. Not only in online shopping, but also in store shopping. 58% Chinese consumers think delivery in a limited time is very important. The best is to deliver on the same day. This proportion is higher than the Global 41%. But if consumers shopping in the Physical Store, they cannot provide door-to-door service. WeChat E-commerce have this service.4. Physical Store can provide After-sale Service to consumers. If the product have any problem and under guarantee, consumer can bring the product back to the store to ask for help. Not all the WeChat E-commerce can promise to provide After-sale Service. Operational risks1、Physical Store should invest more money in Operating. For example: the stock, the decoration, the tax, the salary, the electric charge, the water rate and so on.WeChat E-commerce have a lower entry condition. It is not need a lot of money. They dont need to stockpile or pay various charge.2、 Physical Store have furious Competition. Because other store will sale same or similar products. Even some products is better than them, but its fine and cheap. WeChat E-commerce also have competition. There are too many people do WeChat E-commerce, most of them are cheap and fine. And different people from different place, so it will have many same or similar products to let consumers to chose. 3、 Physical Store have a large market. WeChat E-commerce have limited market. Because their friends-circle is limited.4. Physical Store often have settled product type and a large stock. They cannot easily change the type.WeChat E-commerce can sale different type of products. If one kind of product dosent sale very good, they can try another new one. Some merchants will chose to stockpile, some will not.5. The opening time of Physical Store usually from 9 am to 8 pm or 9 pm. And the time will change follow the seasons change. In working hours and bad weather, physical Store will have a bad business volume. In holiday, Physical Store will have a good business volume.The opening time of WeChat E-commerce can lasts 24 hours. Business volume is not rely on the seasons change and climates change and holiday.For the consumer, I will also mention 3 aspects. Consumer psychology, Purchasing power, Consumption risk.Consumer psychology1. If the consumer have a strong Brand consciousness, consumer only buy some products which belong to a certain brand. If this product is only sell in Physical Store, consumers will choose to shopping in Physical Store. If this product is only sell in WeChat E-commerce, consumers will choose to shopping in WeChat E-commerce. 2. Some consumers are enjoy the feeling of shopping in the Physical Store, some consumers are willing to listen shop assistants introduction and accept the shop assistants advices when they shopping in the Physical Store.Some consumers like to have a quiet a consumption environment, they may chose to shopping in WeChat E-commerce.3. Most Consumers have their own Consumption custom. They are accustomed to shopping in Physical Store or WeChat E-commerce. They are accustomed to pay money by cash or E-bank. They are accustomed to pick products from touch and feel or just watch the picture. Purchasing power1. 61% consumers like to shopping in WeChat E-commerce. Most of them are White-collar worker and The generation after 90s. White-collar worker have a busy work and dont have enough money to buy what they wants. So they will chose to buy it with WeChat E-commerce. Most people of The generation after 90s are students. They like to experience fangle. They like to make up themselves. They are lazy and like to buy products conveniently. So they choose to use WeChat E-commerce.2. 93% consumers like to shopping in Physical Store. Most of them are Wrinkly and Old people. Because they like to try and feel before they buy products. They dont believe the quality and quantity of the online products. They are not familiar with the new software and dont know how to use it. Consumption risk1. Consumer can almost make sure the Quality and quantity of the products in Physical Store. But the products in WeChat E-commerce cannot ensure.2. When consumers shopping in Physical Store, they ma