WeChat versus Tmall: which is best for your business?
Two of the biggest marketplace players in China are Tmall and WeChat … and they couldn’t be more different! Read on for a comparison between the two, or check our blog post on WeChat for more details about the social media platform’s selling potential.
Tmall v WeChat
Tmall is the dominant market player. It provides a comprehensive, target-oriented selling platform equivalent to Amazon in the West, which offers a direct search function for users who are looking for a specific product to purchase: users can browse many stores and leave reviews. WeChat, by contrast, is primarily a social media platform. There is no search capability except for brand names and there is no option to comment on or rank a store. However, this has the potential to work to a merchant’s favour if taken advantage of, and its unique storefronts and methods of consumer engagement represent a huge opportunity for sellers on a platform where sales growth is increasing every year.
What's on offer?
Both WeChat and Tmall offer direct targeting whereby sellers can set demographic criteria for targeting audiences with adverts, although the operation is more advanced and precise on WeChat. Moreover, the user demographic of Tmall tends towards younger people, not necessarily the most heavy consumers. By contrast, WeChat taps a much larger demographic and offers a more hybrid selling platform with different consumer engagement potential. Its storefronts are embedded within the social media platform, and although customisation is less flexible than Tmall, it is sufficient for core e-commerce functionality. WeChat also charges no platform commission on goods or transactions, but does charge a handling fee when users withdraw the credits from WeChat Pay if it is for more than 1000 rmb (it is also compatible with Alipay).
Tmall is not only a well-established marketplace in China but also the dominant market player. With many rigid rules, involving penalties and store rankings to fulfil, there are multiple barriers to entry for prospective merchants. By contrast, WeChat operates as a sort of free economy zone; fewer regulations and operating on a self-monitoring, self-reporting basis. However, while WeChat has created huge opportunities for smaller merchants willing to give the platform a go, Tmall is likely to remain the biggest agent in Chinese e-commerce: it is reliable and well-known.
Monrah Consulting can help your business decide which is the best platform that will provide you the best return on investment, both financially and in terms of your brand strength. Get in touch to learn more!
