I believe that everyone was screened by the report that “Ali and Tencent are considering opening up their ecosystems to each other ” on the evening of July 14 . In the circle of friends of the leader of this strange thief group, at least 50 people are reposting relevant news; all WeChat groups related to the Internet and investment are full of discussions surrounding this report.
In fact, this report provides very little information, and we cannot judge how reliable it is. However, I think one thing is very possible: the openness of both parties will be reflected in the payment link first. In other words, Amoy e-commerce companies may open WeChat payment and third-party payment channels such as UnionPay Commerce . This is obviously a major concession from Ali. The problem is:
I don’t know how Tencent will respond?
In addition to payment, how will the two parties open up to each other?
According to the annual risk statistics report issued by major third-party payment platforms required by the Central Bank, since 2018, the number of transactions between WeChat Pay and Alipay has remained at around 3 to 1, and WeChat has an absolute advantage in the field of micropayments. Pinduoduo can use WeChat and Alipay, but the number of transactions between the two companies is very different. The former may be an order of magnitude higher than the latter. Therefore, if Amoy e-commerce is open to WeChat payment, it will undoubtedly be a major benefit for Tencent, which can further consolidate its dominant position in the mobile payment field.
The question is, what resources can Tencent provide in return? In other words, what resources does Ali want? In fact, what Ali wants is nothing more than those, which analysts and the media have already guessed relatively complete:
WeChat Mini Programs are open to Taoist e-commerce companies, such as Taote and even Taobao Mini Programs;
It is easier to forward Taobao/Tmall product links in the WeChat ecosystem;
WeChat cooperates with some major activities of Taoist e-commerce companies, such as double eleven and red envelope grabbing during the New Year;
Tencent’s advertising resources are fully open to Ali’s products.
The fourth item mentioned above is the easiest to do, but it is already open. For example, Gaode Maps launched an advertisement on WeChat Moments a few days ago . However, the first three have some problems. Even if Tencent is willing to cooperate, they cannot be solved overnight. Let me explain more.
First of all, at the end of May 2021, WeChat has basically closed the “small program evokes APP” function; there is only one exception, that is, sharing the small program opened by a third-party APP card, and you can jump back to the APP. This change has caused a lot of uproar, because it closed the door for third parties to “traffic fleece” from WeChat.
The problem is that WeChat’s above decision is not a big problem: WeChat applet, as the name suggests, is a simplified application that provides basic functions within WeChat. Its purpose is to facilitate users, not to allow third parties to acquire customers for free. If a third-party APP wants to export traffic from WeChat, it can do so by placing advertisements or forwarding H5 pages (H5 pages can still evoke APPs) instead of inducing mini program users. On this issue, WeChat ‘s attitude towards “self-family” such as QQ Music and King Glory is equally resolute.
Therefore, if Taobao and Taote really open WeChat mini-programs, but users in them cannot be exported to the Taoxi e-commerce app, can Ali accept this fact? Although this will create a new wave of GMV for the Taoist e-commerce, but the traffic is still in the hands of Tencent, it is like Ali is using its own product system to contribute to the WeChat ecosystem. I don’t know what the management of both sides think of this issue?
Secondly, “WeChat forwarding Taobao/Tmall merchandise links” is a double-edged sword. Not only is Tencent a little jealous, but Ali is also a little jealous. This is the same as Taobao’s blocking of Baidu’s search for products: If merchants are allowed to forward products and activity links on WeChat without any hesitation, it is conceivable that merchants’ advertising budgets will gradually shift from Taobao/Tmall to the WeChat ecosystem. Thereby reducing the monetization rate of Amoy e-commerce. Ali must seek a balance: it can get valuable traffic from WeChat, but it cannot be controlled by others in terms of commercialization.
It must be pointed out that even if Taodian e-commerce can effectively use the traffic of the WeChat ecosystem, it is only a latecomer. From 2019 to 20, JD ’s transaction volume from WeChat has soared; in 2021, Pinduoduo will be launched. With two small programs, “Buy Buy” and “Quick Tuantuan”, we vowed to explore the last wave of traffic dividends to the utmost extent. JD.com and Pinduoduo have been immersed in the WeChat ecosystem for many years. They are familiar with platform rules and user habits. Is Ali really confident to win the WeChat home game? Even if it can, it will take several years.
Third, it is almost impossible for WeChat to cooperate with Amoy e-commerce companies in major events such as Double Eleven. This point does not need to be repeated, because WeChat has limited cooperation even with its own large-scale games and video events. Many people have begun to imagine whether Alipay’s “Five Fortune Collection” campaign in the new year will be able to send hundreds of millions of red envelopes on WeChat. I can only say that this is not in line with the usual style of WeChat (it can easily constitute an inductive sharing), and Ali will not choose WeChat as the main battlefield for such activities.
There is also a possible “exchange terms”: since Taodian e-commerce can be open to WeChat payment, can the WeChat e-commerce ecosystem (small programs, video number with goods, etc.) be open to Alipay? There is some possibility of realization of this brain hole, but it is of little significance to Ali-WeChat Pay has an absolute advantage in the field of micropayments, while WeChat e-commerce is almost all micropayments. If this scene does happen, the symbolic meaning will be far greater than the actual meaning.
All in all, I am very welcome to the prospect of opening up the two ecosystems of Ali and Tencent, and I am as optimistic as the hundreds of millions of users. I also believe that the original intention of the development of the Internet is to build a broad world that is inclusive and free of barriers, rather than being cut apart by various ecosystems. However, I don’t know how this openness will be achieved, especially not sure what resources Ali wants from Tencent and what resources Tencent (mainly WeChat) can give. What do you think?
Let’s wait and see.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/alibaba-and-tencent-are-considering-opening-up-their-ecosystems-to-each-other-what-do-you-think/
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