written by: Mu Tong, Amy

The press conference “2 hundred million in one day” held by Liby company

On August 1st, 2016, the leading Chinese chemical cleaning product brand, Liby, launched its new laundry detergent sheet product on WeChat e-commerce platform. It is reported that online sales transactions reached 200 million [1] within the first 24 hours of launch – a record breaking sales volume on WeChat e-commerce.

As Chinese leading social messaging app, WeChat [2] expanded its service to mobile commerce in 2014 [3]. Now, more than 15 million [4] people have joined the platform, which means one WeChat e-commerce agent for every 50 users. Developing a business on WeChat seems to be necessary if you want to sell direct to mass Chinese customers. However, the current sales situation on WeChat e-commerce mainly relies on personal relationships and has been widely criticized for a lack of discipline and dubious products. People’s Daily once described the problem as “malicious rights-infringement, excessive marketing, coercive sharing, deliberate swindling, and chaos.” [5]

What can we learn from Liby’s success? First, Liby’s choice of its new product launch well-answers to the weakness of “no-quality-guarantee”. The laundry sheet released has six patented technologies. Liby as a well-established household brand is a convincing quality back-up to customers on the e-marketing channel. The reputation of Liby precedes and consumers finally find a brand they are familiar with and confident in on WeChat e-commerce platform.

Second, the product is fairly new to Chinese consumers and it can only be purchased on WeChat, which means it will not affect Liby’s other traditional business. It is a fairly good product choice for testing both the channel and the market.

As such, WeChat provides a new channel for well established companies like Liby to approach the consumer in a new way with new products. At the same time, the entry of Liby to the WeChat e-commerce platform raises the bar of online market with its high-quality products and normative operation pattern.
According to the usage statistics released by WeChat last year, social commerce is the last among the top ten daily activities for Chinese users, implicating this service still has a lot of latent potential.
The splashy entry of leading brands like Liby to the WeChat e-commerce platform reminds us the positive impact an industry bellwether could generate for e-marketing channels. Standards are set on top of the sole reliance on suppliers’ consciousness or regulation from governments.

Liby’s official account on WeChat

 

[1] The report of “2 hundred million in one day” on Liby’s official website
http://www.liby-jbs.com/news.html
http://mt.sohu.com/20160819/n465064251.shtml
[2] https://walkthechat.com/wechat-impact-report-2016/ [3]https://thenextweb.com/asia/2014/05/30/brands-can-now-set-up-shop-inside-chinese-messaging-app-wechat/#.tnw_DFAmxJm9
[4] http://www.6889888.com/caijing/3684552.html
[5] https://www.techinasia.com/wechat-headed-regulatory-trouble