Core Viewpoint - The integration of WeChat's video account live e-commerce team into the WeChat Open Platform has not led to the expected growth, with WeChat e-commerce remaining stagnant compared to major competitors like Taobao, JD, Pinduoduo, and Douyin [1][2][3] Group 1: Current Performance and Market Position - WeChat e-commerce is described as "not warm, not hot," with significant gaps in scale and importance compared to leading e-commerce platforms [1][2] - Despite the management's emphasis on e-commerce growth, the actual performance metrics remain unimpressive, lacking specific growth figures in financial reports [2][3] - The competitive landscape in 2025 is deemed favorable for WeChat e-commerce, yet it has failed to capitalize on this opportunity [3][4] Group 2: Internal Challenges and Management Issues - The WeChat team has been criticized for its operational inefficiencies and lack of execution, which are seen as the primary reasons for the underperformance of WeChat e-commerce [6][7] - There is a suggestion that the WeChat team has become complacent, relying too heavily on product features rather than robust operational strategies [6][7] - The historical success of WeChat in other areas is attributed to external partnerships rather than internal execution, indicating a potential misalignment in strategy for e-commerce [7][8] Group 3: Future Directions and Strategic Considerations - The article posits that if the current team cannot effectively manage e-commerce, a new team may need to be established, although this could disrupt existing power dynamics within the company [7][8] - There is a consideration of shifting focus from building a closed e-commerce loop to directing traffic to traditional e-commerce platforms, which may align better with current capabilities [8] - The overarching message emphasizes that success in e-commerce requires the right team and operational focus, rather than relying solely on established platforms and past successes [8]

Core Viewpoint - Tencent's establishment of the e-commerce product department within the WeChat business group signifies a strategic shift towards independent e-commerce operations, reflecting the company's long-standing challenges in building a sustainable e-commerce ecosystem despite its vast user base and previous attempts [3][4][5]. Historical Context - Tencent's e-commerce journey began in 2005 with the launch of the C2C platform Paipai, followed by various initiatives like QQ Mall and WeChat Store, but these efforts have consistently struggled with the "tooling of traffic" dilemma, failing to create a sustainable trading ecosystem [4]. - The recent organizational restructuring aims to consolidate e-commerce functions previously scattered across different departments, continuing Tencent's strategy of using organizational changes to drive business [4]. Structural Conflicts - WeChat's potential for e-commerce is hindered by three structural contradictions: the paradox of private traffic versus economies of scale, the conflict between social trust and transaction security, and the tension between the ideal of a closed ecosystem and the reality of an open platform [5][6]. - The reliance on private traffic creates higher operational costs for merchants compared to traditional e-commerce platforms, while social dynamics complicate consumer trust in transactions [5][6]. Capability Gaps - Tencent faces significant external challenges, particularly in supply chain, logistics, and talent acquisition, which are critical for e-commerce success [7][8]. - The company has historically focused on light asset operations, lacking the necessary investment in logistics infrastructure compared to competitors like Alibaba and JD [7]. - The current leadership in the e-commerce product department lacks extensive retail experience, which may hinder effective execution [8]. Strategic Implications - The formation of the e-commerce product department marks a shift from exploratory efforts to a more aggressive strategic focus, driven by the need to maintain Tencent's market value amid pressures on gaming and advertising revenues [9]. - While Tencent may achieve short-term successes in niche areas like live commerce, fundamental issues such as supply chain weaknesses and inherent conflicts in its business model could limit long-term growth [9].