The Information’s Post

The walled gardens (and economic moats) continue to come down. China's consumers can now use WeChat Pay on Taobao and Tmall. From mid-October, Alibaba can use JD Logistics, which is considered the most reliable in China. This is great for consumers but perhaps not for e-commerce platforms, as it leads to commodification, and they've got to compete on price. Perhaps the only winner here is Tencent, as their payments and mini-program platform become stickier.

Fascinating news from Alibaba: WeChat Pay is being added as a payment option for Taobao/Tmall merchants. This move not only enhances the user experience by offering greater convenience and flexibility, but it also signals a significant shift in China's digital landscape. For the last few years we've seen the gradual erosion of the "walled gardens" of the Chinese Internet. In the past there were clear silos between Tencent and Alibaba platforms, with virtually no interoperability for payments or page sharing. Allowing WeChat Pay in the Taobao/Tmall ecosystem is a true milestone. For Alibaba, this move reinforces the "user first" strategy by allowing users the freedom to choose the preferred payment method. It also helps with competition against JD and Pinduoduo, which are more integrated with the WeChat ecosystem. It's an exciting step forward in China's e-commerce space, and I'm eager to see the positive impact it will have on merchants and consumers alike.

Resources are better utilized at the societal level (Q1, Q2) thanks to state guidance (Q3). Q1: "JD.com’s logistics services will be available on Hangzhou-based Alibaba’s Taobao and Tmall from mid-October..." Q2: "JD.com will also integrate delivery and parcel storage services by Alibaba unit Cainiao Logistics...And Alipay is expected to be activated on the Beijing-based platform before the online Double 11 shopping festival in November..." Q3: "To curb monopolistic behavior by internet companies, Chinese regulators began to call for better connectivity between the big internet platforms in 2021." https://lnkd.in/gUURV36X

Brave enough to join forces with your opponent? Alibaba has made a bold move by allowing WeChat Pay to be used on its e- commerce apps like Taobao and Tmall! For those unfamiliar, this is huge because Alibaba and Tencent are known as fierce competitors in China’s tech landscape— like Apple vs. Microsoft or Coke vs. Pepsi. So why does this matter? Millions of users who prefer WeChat Pay will now find it easier to shop on Alibaba's platforms. Is this the start of more cooperation between tech giants? Alibaba is willing to adapt and innovate to keep its edge in an ever-competitive market. Could this be a game-changer for e-commerce in China and beyond? What do you think about this surprising alliance between two giants? Let me know your thoughts in the comments! 

🧱Another walled garden is coming down in #China❗ Alibaba has officially announced that it’s ready to accept WeChat Pay for all users. Starting on September 12, WeChat Pay will be gradually rolled out to all merchants in Taobao and Tmall. 💡It’s no coincidence that over the past few months, the teams at these two giants have been working tirelessly on the #tech, #legal, and #security fronts to ensure a seamless experience for consumers ahead of China’s biggest #ShoppingFestival Double 11. Traditional #eCommerce platforms are facing increasing competition from Little Red Book (Xiaohongshu) and Douyin, which have been steadily grabbing more market share during these #shopping events in recent years. 🚫 Since 2021, Chinese authorities have been cracking down on walled gardens to curb the growth of monopolies, promote competition, and expand consumer choice. For more information, read the article 👉🏼 https://lnkd.in/dw95tTcv

The #Personal #Information #Protection #Commission in Korea has launched an investigation into the data collection and usage practices of Chinese e-commerce platforms such as #AliExpress and #Temu. The objective is to ascertain the legality of their personal information management practices. Commissioner Koh Hak-soo, speaking to correspondents in Washington on the 3rd, stated, "We are currently examining how user data from Chinese online shopping companies like Temu and Ali is collected and utilized." Mr. Koh explained, this is driven by widespread concerns about the adequacy of personal information protection among those e-commerce platforms. The investigation will initially focus on the personal information processing policies outlined in each company's terms of service, how consent for data collection and use is obtained, and whether the collected data is managed within China or exported to third countries. With 8.88 million and 8.30 million monthly app users in Korea respectively, AliExpress and Temu are significant players in the Korean e-commerce platform market, trailing only behind Coupang, which boasts 30.87 million users. Having personally used Temu, I find them good and believe they have significant potential to penetrate specific sectors within the Korean market. However, this incident likely serves as a reminder to the platforms operating across borders about the importance of #compliance in the Korean market in general.

Temu is not putting as much emphasis on the US allegedly. The Chinese-owned company is currently dealing with forced-labor accusations from the US, scrutiny of their use of the US "de minimis" customs rules, pending lawsuits regarding information collection, and criticism over its handling of counterfeits. Plus, there's the whole TikTok ordeal. However, the company states it "is shifting business priorities beyond the U.S." "Temu said that its expansion to new markets doesn't reflect a reduced emphasis on the U.S. The retailer said it is looking to build a global e-commerce platform and that its decisions aren't driven by the experience of another company." #CSCCSCM #Retail #eCommerce #homedelivery #lastmile #fastfashion #supplychain #logistics

Alibaba, the big online shopping company from China, is thinking about doing one-hour deliveries everywhere in the world using rockets. They're working with a company called Epoch Space in Beijing to make this happen. They talked about it on a Chinese social media app called WeChat. Alibaba, which also owns the South China Morning Post newspaper, said on Monday that even though this idea might sound funny at first, they're serious about it. The rocket they're planning to use is called XZY-1. It's got enough space for a big load, like 10 tonnes, which could be as big as a car or a small truck. But they admit that making this happen anytime soon won't be easy. "It's a big project for the future," they said in the post. Click to Read Alibaba to test rocket parcel delivery service details: https://lnkd.in/gV9fJs-z #alibaba #Rockets #1hourdelivery #rocketdelivery

Implementing regulations to protect e-commerce clients becomes necessary as the industry grows to a certain size, similar will happen to other countries. A learning curve needs to be established early on to guide communities through the process. #ecommerce

WSJ [excerpt]: #Temu, the discount retailing app owned by Chinese #ecommerce giant PDD Holdings, is facing consumer complaints that its #business practices violate a new #online content #law in #Europe, one of the company’s fastest-growing markets. The European Consumer Organization on Thursday filed a 26-page complaint with the #EuropeanCommission alleging that some of Temu’s business practices are in breach of requirements regarding product traceability, among others. The organization, a #Brussels-based collection of regional consumer groups known as the BEUC, said in a statement that Temu fails to provide enough information about sellers of the products on its platform to determine whether products meet #EuropeanUnion safety requirements. It also said the company uses “manipulative techniques” to “get consumers to spend more than they might originally want to, or to complicate the process of closing down their account.” The BEUC said those practices contradict the #EU’s #Digital Services Act. The legislation, a sweeping new law aimed at boosting competition from smaller companies in the areas of digital advertising, online search and app ecosystems, came into full effect earlier this year. Temu, responding to a request for comment, said it is taking the complaint “very seriously” and will “study it thoroughly.” It said it is “committed to full compliance with the laws and regulations of the markets where we operate.” First launched in the U.S. in 2022, Temu quickly made a splash with its affordable prices and strong social-media presence despite the increasing geopolitical tensions faced by Chinese companies. In less than two years, it became the U.S.’s second-most popular #shopping app by monthly users after Amazon.com. More recently, the company entered European markets in pursuit of new growth. It said it had about 75 million monthly active users in the EU for the six months ended March. The Wall Street Journal reported earlier this week that the bargain app has been shifting business priorities to Europe and other countries, in part due to mounting political troubles faced by TikTok, the video-sharing platform owned by #China’s ByteDance that is currently facing legislation calling for its ban or divestment in the U.S. #news