RETAIL & COMMERCE
THE FUTURE 100 142
Chat commerce (ccommerce, c-commerce or cCommerce) is sprouting
on messaging platforms. It is also known as private domain commerce, to
differentiate it from the public domain of brand websites or marketplaces such as TMall or Amazon.
In China, WeChat—which has 1.2 billion monthly users—has been especially successful in building relationships with luxury brands through livestreaming
and private messaging. Consumers spend an annual average of RMB 170,000
($26,550) via WeChat, according to a 2020 report by Boston Consulting Group and Tencent Marketing Insight.
Private domains Messaging platforms are becoming the next battleground for brands and loyalty.
Guangzhou-based direct-to-consumer color cosmetics brand Perfect Diary
combines savvy cultural partnerships and a premium look with low prices. It is
present everywhere its target gen Z audience plays, from the social media and ecommerce platform Xiaohongshu (or Little Red Book) to short-video platform Bilibili to Douyin (as TikTok is known in China).
Perfect Diary also invites consumers who buy on marketplaces to join its official WeChat account or that of its virtual influencer Xiao Wanzi. This recruits
followers in groups of several thousand to offer them sneak peeks of launches, and plays the role of a personal shopping assistant.
“Not only does Xiao Wanzi let you preview new products and deals, but you get inspiration from the conversations of the entire chat group,” says Joyce Ling,
chief strategy officer of Wunderman Thompson China. “Even though it appears a little ‘fake’ and like a show, it is literally a condensed version of the consumer journey from awareness to purchase to loyalty.”
