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… zones.</li>
</ol>
Energy costs and tax benefits are highly favorable for Chinese businesses. In KEZAD’s free zone, for example, industries can enjoy zero taxes. The UAE has no personal income tax and a value-added tax (VAT) rate of 5%, but KEZAD’s industrial sector is VAT-exempt, along with customs duties. Although businesses with over AED 375,000 (USD 102,100) in revenue must pay 9% corporate income tax, many industries are tax-exempt, such as manufacturing in KEZAD.
Labor-intensive industries may encounter efficiency issues, but high-tech and automated enterprises have a distinct advantage.
<figure id="attachment_146046" aria-describedby="caption-attachment-146046" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-146046" src="https://console.kr-asia.com/wp-content/uploads/2023/10/Pony.ai-Neom-1024x768.jpg" alt="Photo of James Peng (third from left), co-founder and CEO of Pony.ai, shaking hands with Majid Mufti (third from right), CEO of Neom Investment Fund, alongside representatives from both organizations." width="1024" height="768" srcset="https://console.kr-asia.com/wp-content/uploads/2023/10/Pony.ai-Neom-1024x768.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2023/10/Pony.ai-Neom-300x225.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2023/10/Pony.ai-Neom-768x576.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2023/10/Pony.ai-Neom.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-146046" class="wp-caption-text">Pony.ai, a Chinese autonomous driving technology company, is among the notable Chinese firms to secure investment and partnerships with Saudi investors. In October 2023, it <a href="https://kr-asia.com/pony-ai-secures-usd-100-million-from-saudi-arabia-amidst-rising-middle-eastern-interest">raised USD 100 million in Series D2 financing</a> from the Neom Investment Fund, the investment arm of Saudi Arabia’s Neom future city project. Photo of James Peng (third from left), co-founder and CEO of Pony.ai, shaking hands with Majid Mufti (third from right), CEO of Neom Investment Fund, alongside representatives from both organizations. Photo from KrASIA’s archive.</figcaption></figure>
<h3>36Kr: Saudi Arabia has grown rapidly in recent years. How does its infrastructure compare to the UAE’s in attracting investment?</h3>
YL: I’m not sure about other areas, but KEZAD provides fully developed infrastructure. Land is leveled, electricity and water are connected to the doorstep, and roads are built to the entrance. Rainwater and sewage systems are also completed underground before land is handed over to Chinese businesses, with no extra costs.
<h3>36Kr: Can you give a specific example? Would the cost of building a factory in the Middle East be higher than in China?</h3>
YL: I think the costs are actually lower. Take for example a modern agriculture company I helped introduce into KEZAD: land is very cheap after subsidies, electricity costs are half of those in China, and since operations require significant cooling, the savings are substantial. Taxes are minimal, and once the business grows to a certain scale, costs become very manageable. Labor needs are limited, but product prices in the Middle East are 3–4 times higher.
whereRelatedArticle
<h3>36Kr: The Middle East has always been unstable, with events like the Israeli-Palestinian conflict and the <a href="https://kr-asia.com/red-sea-crisis-shipping-costs-skyrocket-dealing-setback-to-cross-border-sellers">Red Sea crisis</a>. In your opinion, does geopolitical risk affect the Gulf markets, and how can Chinese businesses mitigate such risks?</h3>
YL: This is a geopolitical issue, so I’ll keep my response brief. Looking at the UAE’s diplomatic behavior in recent years—such as hosting the presidents of China, the US, and Russia—it’s clear that the UAE does not take sides. The nation values freedom and openness, aiming to become the “Singapore of the Middle East,” with a fundamentally neutral stance.
Interestingly, many wealthy Russians have moved to the UAE in recent years, bypassing Singapore.
<h3>36Kr: How have Saudi Arabia and the UAE’s attitudes toward Chinese businesses changed in recent years?</h3>
YL: They are undoubtedly more welcoming toward China.
First, as the world’s largest energy consumer, China is an ideal customer.
Second, Saudi Arabia made significant purchases at the recent China International Aviation and Aerospace Exhibition, including Chinese weapons.
Third, the region’s massive demand for infrastructure aligns with the strengths of Chinese companies, which are capable, cost-effective, and often willing to provide financing—making collaboration particularly appealing.
These factors collectively foster stable relationships, creating favorable conditions for Chinese businesses to expand into the Middle East.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3082382424078724">article</a> was written by Leslie Zhang for 36Kr.

Why are Chinese companies flocking to the Middle East (again)?

Saudi Arabia

China

Middle East

… cumulative retail market share, leaving limited room for smaller players to compete.
Intensified competition also accelerated the pace of innovation in the cleaning appliance sector. Since 2021, Ecovacs has consistently released at least one major product annually. Roborock and Dreame have moved even faster, with Roborock launching over two products per year and Dreame introducing four new models in 2023 alone. In contrast, Roidmi’s infrequent product releases left it trailing far behind its rivals.
In addition to missing key market opportunities, Roidmi found itself increasingly marginalized within the Xiaomi ecosystem.
Xiaomi’s third-quarter 2021 earnings report revealed its investments in over 300 IoT ecosystem enterprises, 210 of which were established before 2019. However, as IoT consumer product growth slowed to 8.57% in 2020, Xiaomi began streamlining its ecosystem, reducing SKU portfolios, and redirecting investments toward sectors like automotive and semiconductors.
Amid these shifts, Roidmi sought to rebrand and align with a new ecosystem partner. According to Tianyancha, Roidmi founder Wang Zhiqiang also served as the executive director and general manager of Wuxi Qingyi Smart Technology, a participant in Huawei HiLink’s smart appliance ecosystem. Despite these efforts, the partnership yielded little traction—the official WeChat account of Qingyi’s cleaning division has been dormant since June 2022.
Roidmi ultimately struggled due to internal limitations and poor strategic decisions at crucial moments. While the company achieved notable successes, such as spearheading Xiaomi ecosystem projects and earning international design accolades, it lacked the supply chain resilience and strategic focus required to thrive in a fiercely competitive market.
The rise and fall of Roidmi encapsulates the rapid evolution of the IoT and smart appliance industries. Once a standout in Xiaomi’s ecosystem during its prime, Roidmi’s downfall stemmed from its failure to adapt to changing market conditions and build strong ecosystem partnerships.
By the time Roidmi exited, the cleaning appliance industry had been upended by fierce price wars and accelerated innovation cycles. Its departure not only marks the end of a notable chapter but also serves as a cautionary tale for emerging brands navigating an increasingly volatile and competitive landscape.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3084245517744261">article</a> was written by Ye Danxuan for 36Kr.

Roidmi bows out: Xiaomi-backed brand succumbs to market pressures

Retail

Consumer Economy

A retail downturn in Hong Kong has hit myriad businesses, including restaurant operators that have seen their clientele abandon them for trips across the border, where their cash goes further.
One noodle chain operator from Japan is striving to ride out the slump, in part, by emphasizing its "Japanese-ness" and replicating what is hot in its homeland.
"The situation seems to be a bit better now, but still has not returned to the level in the past," said Kei Hasegawa, managing director of J-Foods Hong Kong. The company is a regional franchisee of Japan's Mita Seimenjo, which serves "tsukemen" dipping noodles, and Tonkotsu 8, which offers ramen in a pork bone broth.
Hasegawa spoke with Nikkei Asia the day before a renovated Mita Seimenjo branch reopened on December 11 in the busy commercial district of Tsim Sha Tsui. It had been closed for a month and a half for a refurbishment to match "the latest store design of Mita's outlets in Japan," he said.
Despite coming at a cost, which Hasegawa did not disclose, "We thought it was worth it," he said.
Like many other restaurant and catering businesses in Hong Kong, J-Foods is looking for ways to revitalize stagnant sales and foot traffic. Hasegawa admitted that business had been slow since around April.
Industry watchers blame the trend of more Hong Kongers heading to the neighboring mainland city of Shenzhen for shopping, dining and entertainment, taking a substantial amount of income away from local eateries and merchants. Across the border, they find cheaper prices and improved service. Plus, the Hong Kong dollar—which is pegged to the US dollar—has been stronger against the Chinese yuan.
whereRelatedArticle
Under the circumstances, J-Foods is trying to cope by taking advantage of widespread local appreciation for Japanese cuisine. The strategy, as he put it, is to "emphasize that we are serving things from Japan and putting that up front."
This includes bringing over a menu item that went viral in Japan after it was introduced last fall: "tamago kake men" (raw egg noodles), or "TKM." The operator hopes this will appeal to younger Hong Kongers who are keen to try new things.
Initially, TKM will be available on a trial basis for about a month. It is priced at HKD 96.8 (USD 12.4) with a mandatory 10% service charge—a typical price range in Hong Kong for a bowl of Japanese noodles, but about double what Mita outlets charge in Japan.
Despite the tough times, a range of other Japanese restaurants are <a title="" href="https://asia.nikkei.com/Life-Arts/Life/Eat-Drink/Authentic-Japanese-eel-eatery-aims-for-splash-in-tough-Hong-Kong-market" target="_blank" rel="noopener">opening in Hong Kong</a> lately.
The maiden Hong Kong shop of Torikizoku, a Japanese izakaya-style tavern that focuses on chicken skewers, is set to open its doors on December 16.
Mita's Tsim Sha Tsui branch also has a new cohabitant opening its first Hong Kong shop on the same premises on December 16: Teppei Syokudo, which mainly serves "kaisendon" bowls of seafood on rice.
The brand, which has five outlets in Singapore, is keeping prices low. The cheapest bowl will be "negitoro don." Topped with raw tuna and scallions, each bowl will go for HKD 68 (USD 8.7), with no service charge. Teppei hopes to capture takeout demand at lunchtime.
Consumers' reluctance to spend is reflected in the local real estate market.
JLL, a major real estate management company, said in a report on December 11 that a recovery in the city's retail property sector "has been hindered by a decline in domestic consumption." At the same time, there is polarization, with "leasing activity sustained in top tier shopping streets while lower tier streets struggle to attract tenants despite highly negotiable rents."
Jeanette Chan, senior director of JLL's retail segment in Hong Kong, said: "The market will face increased downward pressure," with rents expected to fall by up to 5% on the year in 2025 in the city's prime streets and shopping centers.
Chan foresees more "flexible" leasing options as landlords scramble to retain quality tenants.
While this may present some opportunities for restaurants and retailers, Hasegawa said he has no concrete plans to expand beyond two Mita, three Tonkotsu 8 outlets, and the brand-new Teppei at this point.
Confirming the polarization, he said that the rent for its Tsim Sha Tsui branch in the K-11 Art Mall, a retail-museum hybrid shopping center owned by New World Development remains unchanged while that of other suburban outlets has fallen.
For now, the mission is one of survival.
"I don't expect the current severe situation to last forever, as I believe that the attractiveness of Hong Kong is still here," Hasegawa stressed. But he added, "We may need to endure for around one more year."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Life-Arts/Life/Eat-Drink/Japanese-noodle-chain-cooks-strategy-to-endure-Hong-Kong-downturn" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Japanese noodle chain cooks strategy to "endure" Hong Kong downturn

Consumer Services

Japan

Hong Kong

… commerce.
whereRelatedArticle
<h3>Evolving alongside consumers</h3>
As consumers evolve, so must businesses. Content acts as a critical lens into consumer preferences and behaviors. Actions such as sharing, forwarding, and bookmarking do more than reflect interest—they spark latent purchasing needs. From a long-term perspective, every targeted investment in interest-based content has the potential to bear fruit over time.
However, businesses at different stages of development approach short- and long-term returns with varying expectations. This necessitates strategic flexibility to pivot when required. Companies must avoid falling into the trap of relying on past experiences—such as focusing exclusively on e-commerce tactics or prioritizing content creation without robust conversion mechanisms.
The relationship between content and commerce is not hierarchical but one of proportional alignment. That said, accurately assessing content’s value remains a challenge. Douyin recognizes this and aims to ensure its role as a content platform is not undervalued. In 2023, Ocean Engine introduced an omnichannel product equipped with scientific attribution and measurement tools to help businesses quantify content’s impact effectively.
In industries such as dining, home appliances, fashion, and tourism, between 40–80% of gross merchandise value (GMV) generated through Douyin occurs off-platform. Notably, this figure only accounts for traceable ad touchpoints, meaning Douyin’s true omnichannel value is likely far greater.
This underscores Douyin’s ability to deliver not just incremental opportunities but also exponential potential within its content ecosystem. Cases like Harbin’s tourism boom serve as powerful illustrations of growth driven purely by content.
Douyin’s seeding strategies effectively drive omnichannel conversions. This emerging growth paradigm is more than a solution—it is a structured process that can be deconstructed, analyzed, and replicated. Brands that recognize and reframe the value of Douyin’s content ecosystem stand to unlock its omnichannel potential ahead of the curve, leveraging precise moves to succeed in today’s challenging market landscape.
After all, growth belongs to the future, but execution must occur in the present.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3077326488975236">article</a> was written by Xiao Xi for 36Kr.
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How does Douyin fuel omnichannel growth for brands?

Douyin

On-demand Services

E-commerce

Short Video

Live Streaming

Video

Creative

Content

… funding round. PDVC participated in the round through its angel mother fund. The investment will accelerate PGVerse’s product development and the construction of its spatial computing platform and spatiotemporal AI models. —<a href="https://36kr.com/p/3080981354067847">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Swipey, Funding Societies, CATL, and more made recent headlines:</h3>
<ul>
<li aria-level="1">Swipey, a Malaysia-based fintech platform, secured an undisclosed investment from 1337 Ventures.</li>
<li aria-level="1">Funding Societies, a digital finance platform serving SMEs in Southeast Asia, raised USD 25 million from the Cool Japan Fund (CJF), marking CJF’s first foray into the region’s fintech landscape.</li>
<li aria-level="1">Contemporary Amperex Technology Company (CATL), the world’s leading electric vehicle battery manufacturer, is reportedly considering a secondary listing in Hong Kong, targeting at least USD 5 billion.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Bolttech raises Series C funding, Catcha Digital to acquire stakes in Tastefully and Drive 2 Digital, latest China deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Malaysia

Southeast Asia

… wind with each swap. Integrated with green energy systems, these stations can act as city-level virtual power plants, promoting sustainable energy use and turning users and businesses into contributors to environmental sustainability.
By bridging energy producers, storage systems, and users, CATL’s new system can elevate the renewable energy industry to a higher standard of development. This marks not only a testament to its capabilities but also a significant milestone in the company’s global energy strategy.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3088646341179523">article</a> was written by Xiao Xi for 36Kr.

From power to profit: CATL turns EV batteries into financial assets with “Choco-Swap”

Deep Tech

Batteries

Energy

Transactions with stablecoins backed by local currencies will be the way to mass adoption of blockchain technology in Southeast Asia, said an executive of global cryptocurrency giant Coinbase.
At present, Coinbase Exchange has no plans to enter Southeast Asian jurisdictions, but its wallet business as well as its blockchain platform Base are aiming to reach mass markets in Thailand and the Philippines by enabling local developers to build products that will eventually support baht and peso stablecoins.
"When you bring a local currency 'onchain,' it solves a few problems. One, it makes it easier for people to onboard without the complexity of changing your worldview about money," said Jesse Pollak, founder of Base and head of Coinbase Wallet, referring to transactions that are processed on a blockchain. "If you have a Thai baht stablecoin, it's literally the same money but just faster, cheaper, and easier to use."
Cryptocurrencies like bitcoin and Ethereum are digital assets that are minted on blockchains and issued independently of governments and central banks. Historical volatility has raised the profile of cryptocurrencies, with the price of a single bitcoin <a href="https://asia.nikkei.com/Spotlight/Cryptocurrencies/Trump-spurred-bitcoin-nears-100-000-marking-a-crypto-shift-for-Asia">nearing USD 100,000</a> since the election of Donald Trump, whose incoming US administration is viewed as tolerant of crypto.
Stablecoins pegged to gold or a government-backed currency are, in theory, less volatile. USD Coin, which is pegged to the dollar, is not supported by the US government, but in October, Thai regulators approved the <a href="https://asia.nikkei.com/Spotlight/Cryptocurrencies/Siam-Commercial-Bank-launches-stablecoin-based-cross-border-payments">first cross-border payments</a> solution using stablecoins. The Philippine central bank also approved a pilot program by Coins.ph of a peso stablecoin in May.
"Regulators are, rightly, a little bit nervous when you talk about onchain—are you really just talking about dollarizing our economy?" Pollak said. "But it's this new technology that can help modernize and upgrade legacy systems in every country."
Pollak spoke with Nikkei Asia after visiting Thailand for the Southeast Asian leg of Devcon, an expo organized by Ethereum, the blockchain underlying the world's secondmost traded cryptocurrency.
At Devcon, non-Thai participants were allowed to convert dollar stablecoins to baht stablecoins without foreign exchange fees and make payments through Rubie, a new stablecoin wallet from Siam Commercial Bank built on Base. Base is a second layer on top of the Ethereum blockchain where developers can create apps and process transactions.
Pollak said SCB would assess the pilot program with regulators in order to secure approval for a full rollout.
Thailand pioneered digital payments in Southeast Asia with PromptPay, the government-backed QR code payments system. But only Thai nationals or foreign residents with local bank accounts can use the system, barring the nearly 30 million tourists that visit Thailand each year.
"You want to grow the economy but when you have tourists or folks who are traveling for work, they are locked out of those best-in-class systems and they have to resort to converting their cash into Thai baht and paying a fee," Pollak said. "That's actually a pretty difficult challenge right now that stablecoins can help to overcome."
Pollak said Base was looking to hire country leaders in Thailand and the Philippines to coordinate with developers, content creators, regulators, and mass market users of its apps and wallet.
While interest in cryptocurrencies is high among Thai retail investors seeking greater returns than traditional assets and securities, many suffered losses in the crypto crash of 2022 that felled Zipmex, which had been the country's second largest exchange. Zipmex was replaced last year by Binance, Coinbase's global rival. Binance secured its <a href="https://asia.nikkei.com/Spotlight/Cryptocurrencies/Binance-launches-Thailand-digital-asset-exchange-with-Gulf-Energy">first digital asset exchange license</a> in Southeast Asia from Thailand.
"If you look at the history of crypto, it has been very speculative. When things are going up, there's a lot of positive energy, but if things go down, negativity and fear proliferates. So one of the biggest things we're focused on is shifting it so it's not about speculation, but about utility," Pollak said.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Spotlight/Cryptocurrencies/Coinbase-arm-seeks-Southeast-Asia-foothold-with-baht-peso-stablecoins" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Coinbase arm seeks Southeast Asia foothold with baht, peso stablecoins

Cryptocurrencies

Thailand

Philippines

… https://console.kr-asia.com/wp-content/uploads/2024/12/Nio-Firefly-Nio-Day-2024-300x169.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/12/Nio-Firefly-Nio-Day-2024-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/12/Nio-Firefly-Nio-Day-2024-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/12/Nio-Firefly-Nio-Day-2024-480x270.jpg 480w, https://console.kr-asia.com/wp-content/uploads/2024/12/Nio-Firefly-Nio-Day-2024.jpg 1920w" sizes="(max-width: 640px) 100vw, 640px" /><figcaption id="caption-attachment-151331" class="wp-caption-text">Photo of the Firefly sub-brand’s debut car model, revealed during Nio Day 2024 on December 21. Photo source: 36Kr.</figcaption></figure>
With Nio, Onvo, and Firefly, Nio has finally rounded out a lineup befitting a mature automaker. Each brand has a clear purpose:
<ul>
<li aria-level="1">Nio: To challenge premium automakers like BMW, Mercedes-Benz, and Audi.</li>
<li aria-level="1">Onvo: To stabilize sales and margins for cash flow.</li>
<li aria-level="1">Firefly: To target global expansion as Nio’s spearhead.</li>
</ul>
However, challenges loom. Onvo’s L60 has underperformed, and the ongoing EV price war is pressuring Nio’s bottom line. The ET9 strengthens Nio’s brand, but Firefly must drive growth to stave off more daunting challenges next year.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3089878477732232">article</a> was written by Han Yongchang and Zhang Bowen for 36Kr.

Nio shakes up the market with luxury ET9 sedan and Firefly compact car debut

Transportation

Electric Vehicles

Mobility

As major holidays approach, Tencent’s WeChat and its Chinese counterpart, Weixin, have officially begun beta testing a gifting feature for WeChat store products. This feature, designed to simplify the process of sending gifts within the platform, is being trialed across all product categories except jewelry and education. Products eligible for the feature must be priced below RMB 10,000 (USD 1,400). For merchants meeting these criteria, the feature is automatically activated, with an identifying label added to product detail pages.
To send a gift, users can select an eligible product, tap the designated gifting button, and proceed to the gift confirmation page. There, they can choose a design, view the price, select a friend from their contact list, and finalize the payment to send the gift. This new functionality removes the need for recipients to share their shipping address or preferred product design, making the process more convenient and discreet.
Once the recipient is notified of the gift, they can input their shipping address, switch to a different product variant of equal value, and confirm receipt with a single acceptance action. However, the gifting feature includes specific limitations: recipients cannot forward gifts to others, and senders are unable to cancel or modify the order within the first 24 hours after sending, regardless of whether the recipient accepts the gift. If the recipient does not accept the gift within 24 hours, the order is automatically canceled, and the payment is refunded to the sender through the original payment method.
Currently, the gifting feature is only accessible to a limited number of users as part of its beta testing phase. According to 36Kr, a merchant revealed that the feature is expected to become widely available to all users by the week of Christmas.
<h3>A game changer for merchants?</h3>
For merchants, this new feature represents a valuable opportunity to boost sales, particularly for products with strong gifting appeal. By eliminating the need for senders to inquire about recipients’ preferences or addresses, the gifting feature leverages WeChat’s vast social network to make gifting as seamless as sending a digital red envelope. This could significantly improve the success rate of gift transactions and expand customer bases.
A snack merchant disclosed to 36Kr that they are already planning to introduce more gift box options to capitalize on the feature and attract new customers. The merchant anticipates a surge in demand for gifts during upcoming holidays, including Christmas, New Year’s Day, Lunar New Year, Lantern Festival, and Valentine’s Day. “The need for gifting has always existed, but this feature lowers the barriers, which makes us very excited,” the merchant said.
The gifting feature has been designed with merchant convenience in mind. It integrates smoothly into existing systems, with a straightforward adaptation process. On the merchant order page, once the sender has paid for the gift, the order status is marked as "payment pending" until the recipient provides their shipping address and accepts the gift. At that point, the status changes to "shipment pending." Merchants are only notified of payment and shipment after the recipient confirms acceptance of the gift.
It is worth noting that gift orders do not include buyer information. Currently, merchants cannot blacklist users via the gifting system, and any preexisting blacklisted users are barred from both sending and receiving gifts. For after-sale processes, gift orders are managed similarly to regular orders. Shipping insurance is included, with the recipient designated as the beneficiary. If the recipient initiates a return or refund, they are entitled to compensation under the terms of the order's shipping insurance.
Merchants who prefer to opt out of the gifting feature can disable it through platform settings. However, WeChat’s policy requires merchants to enable or disable the feature at the store level—specific products cannot be excluded from gifting eligibility.
<h3>Significance for WeChat and Weixin</h3>
The gifting feature is a natural extension of WeChat’s red envelope functionality, designed to lower barriers to action in social transactions without necessarily creating new demand. Similar to how red envelopes made monetary gifting more engaging and frequent, the new feature simplifies product gifting while maintaining a social, thoughtful touch.
WeChat’s e-commerce strategy has historically relied on group-based transactions and peer-to-peer product recommendations. The gifting feature enhances this dynamic by embedding deeper functionality into the platform, allowing users to harness the power of social relationships in new ways. This is particularly crucial as Tencent works to differentiate WeChat’s e-commerce ecosystem from competitors that prioritize pricing and variety, such as Pinduoduo.
In August, Tencent extended Channels’ store feature to become WeChat stores, enabling merchants to share product information seamlessly across various in-app touchpoints, such as public accounts, live streams, mini programs, and search results. The introduction of the gifting feature complements Tencent’s overarching strategy to establish a cohesive and integrated e-commerce ecosystem within WeChat.
The viral potential of this feature could drive significant user engagement and introduce new customers to WeChat stores. First-time users, for example, may discover brands or products through gift links sent by friends, leading to their first purchases on the platform. This dynamic taps into the network effect that has been a hallmark of WeChat’s success in other domains.
During Tencent’s Q3 earnings call, chief strategy officer James Mitchell outlined plans to improve search functionality within Channels and mini programs. These enhancements aim to optimize content flow and create more commercial entry points, enabling users to discover products more easily. “We aim to build a unified and trustworthy shopping experience within the ecosystem, with indexing and standardization as the cornerstones,” said Tencent president Martin Lau.
Tencent also plans to integrate artificial intelligence and large language models (LLMs) to improve the relevance of search results, further reinforcing the ecosystem’s closed-loop growth. Drawing from data on other live commerce platforms, keyword-driven search often results in higher conversion rates, making this an area of strategic focus for Tencent.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3085308167452800">article</a> was written by Wang Yuchan for 36Kr.

WeChat tests gifting feature ahead of holidays, sparking new e-commerce potential

WeChat