In recent weeks, the concept of WeChat Stores has gained significant traction in the market, stirring a keen interest among investors and consumers alikeAs various listed companies have responded to the rising trend of establishing WeChat Stores, multiple brands in sectors such as food, beauty, and consumer goods have joined this new sales platform, reflecting a broader shift towards digital commerce.

On December 26, one notable example was the stock of ShiyiDa, which experienced six consecutive trading days of gainsThis performance not only highlighted the momentum of WeChat Store-related stocks but also drew attention to other companies such as Kaichun and Zhongbai Group, which hit their upper trading limitsThe positive market reaction extended to firms like Guangyun Technology, Xinhua Du, Meideng Technology, and Yiwan Yichuang, all benefiting from this buzzAs a result, the question of whether companies plan to introduce a "gift-giving" feature via WeChat Stores has become increasingly common among investors on interactive platforms.

On the same day, Longda Foods announced on an interactive platform that their official video account, "Longda Foods," had launched a WeChat Store featuring multiple gift box options for the upcoming Spring Festival

They additionally confirmed the activation of a WeChat red envelope feature for gifting purposesConcurrently, Huanlejia also made an announcement regarding their functioning WeChat Store, inviting individuals to search for "Huanlejia" on WeChat and explore product selections.

In the apparel industry, Semir Fashion indicated that their brands Semir and Balabala had also entered the WeChat Store arena, encouraging users to search for their brand names for accessCurrent retail scales of WeChat Stores remain relatively small, indicating that they do not yet pose a significant impact on broader business operationsSimilarly, Aimer Group mentioned that some of their brands had established WeChat Stores and signaled ongoing interest in this innovative marketing model.

Earlier, companies such as Furljia, Chaohongji, Guomai Culture, Dia shares, and Jiama Clothing had also declared that they had entered the WeChat Store market.

However, amidst this hype, some companies urged investors to maintain a rational perspective regarding the market's enthusiasm for WeChat Stores

Following their impressive six-day stock rally, ShiyiDa publicly indicated that their operations did not engage in the WeChat Store marketTheir primary focus has remained on manufacturing smart hardware and smart terminal productsThey cautioned investors about their current price-to-earnings and price-to-book ratios, which significantly diverge from industry norms, warning them to be mindful of risks.

Furthermore, Laiyifen, which had a four-day consecutive trading increase, also relayed a cautionary note in their announcement, stating that the revenue proportion from sales via the WeChat platform was minimal, accounting for less than one percent of their total incomeThey expressed uncertainty about the growth potential of this outlet moving forward, stressing that there had been no substantial changes to their product line, business model, or operational strategies.

The surge in interest in WeChat Stores can be traced back to December 18, when WeChat introduced a gray-scale testing feature for gift-giving, similar to the well-known WeChat red envelopes

This function allows users to select items from WeChat Stores to gift to friends, with products available for gifting limited to a maximum price of 10,000 yuan.

According to platform guidelines, this newly introduced gift-giving feature is feasible for all WeChat Store categories, excluding jewelry and education-related products, as long as the item's original price does not exceed 10,000 yuan.

The initiation of this e-commerce feature by WeChat has been interpreted by industry experts as Tencent's strategy to adopt a more aggressive approach towards the e-commerce landscape, thereby enhancing the spotlight on WeChat StoresIn November of this year, Tencent released its third-quarter financial report for 2024, during which executives emphasized a revamp of their e-commerce strategy centered around WeChat StoresTheir vision includes integrating modules like Moments, the search function, and mini-programs with WeChat Stores to create a more cohesive and extensive e-commerce ecosystem, enabling brands to glean greater value from WeChat's diverse features, ultimately facilitating transactions.

In light of these developments, numerous brokerage firms quickly released research reports expressing optimism about the incremental opportunities the gift-giving feature could unlock.

Dongxing Securities projected that the gift-giving functionality within WeChat Stores would enhance shopper engagement, potentially driving new online consumer growth

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They noted that companies within the snack food sector are responding swiftly to this trend and could capitalize on gift-giving opportunities during the upcoming Spring Festival celebrations.

Similarly, CITIC Securities predicted that WeChat could attain a market share worth hundreds of billions simply from gift-giving scenariosThis evaluation pointed out the broader potential impact on the WeChat ecosystem, estimating that the overall social commerce market size could reach trillions by 2027. They posited that the convenience of e-commerce would likely facilitate the transition of offline gift purchases into online shopping experiences.

Nevertheless, CITIC Securities also acknowledged the current limitations of the WeChat gift-giving feature, highlighting certain pain points that detract from the typical gifting experienceIssues such as dual-price transparency, delays in logistics post-gifting, and a lack of return policies need to be addressed through future enhancements of the feature