Red Packets Archives

WeChat: China’s Most Sustainable E-commerce Platform

March 20, 2025

For foreign brands entering the Chinese market, discussions around digital marketing often focus on the latest trending platforms like Douyin and Xiaohongshu (RED). While these channels generate significant buzz, WeChat remains the most critical and enduring digital platform in China.

Despite not always being in the spotlight, WeChat continues to be the country’s most widely used app and an indispensable tool for brands aiming to build lasting relationships with consumers. Unlike major e-commerce marketplaces such as Tmall and JD, which demand high advertising spend and platform commissions, WeChat provides brands with a lower-cost alternative for customer acquisition, direct engagement, and complete ownership of consumer data.

WeChat: More Than Just a Messaging App

Originally launched as a messaging app, WeChat has transformed into an all-encompassing digital ecosystem, offering brands multiple avenues to engage consumers:

Official Accounts – A powerful tool that functions like a combination of a website, blog, and email marketing system, enabling brands to share content, interact with users, and build a loyal community.
Mini Programs – Embedded apps within WeChat that provide seamless e-commerce, customer service, and loyalty features without requiring users to leave the platform.
WeChat Pay – An essential mobile payment system that dominates China’s cashless economy.
WeChat Channels – A short video and livestreaming feature that competes with Douyin and Kuaishou, offering brands an opportunity to engage users organically.
WeChat Groups – Exclusive communities where brands can foster deeper engagement and collect valuable consumer insights.

This extensive ecosystem enables users to consume content, interact with brands, and complete purchases all within a single platform, making WeChat an indispensable tool for digital commerce in China.

WeChat as a Digital Storefront for Brands

Unlike in Western markets, where consumers typically turn to Google or a company’s website for brand information, Chinese consumers often search directly on WeChat. This makes WeChat the go-to platform for discovering brands, learning about products, and engaging with customer service.

For many businesses, WeChat effectively replaces the need for a traditional website. However, many foreign brands underutilize their WeChat presence, with outdated content, inactive accounts, and broken links reducing engagement. Keeping a WeChat Official Account updated and interactive is as important as maintaining a website in other markets.

A Fully Owned Channel for Brands

One of the biggest challenges for brands operating in China is balancing the high cost of customer acquisition with long-term retention. Unlike Tmall, JD, and Douyin, where brands must constantly pay for visibility, WeChat allows businesses to build and nurture their own audience. This offers several advantages:

Lower Customer Acquisition Costs – WeChat provides a cost-effective alternative to traditional e-commerce platforms, where brands must bid for visibility.
Full Data Ownership – Unlike marketplaces that control customer data, WeChat enables brands to collect and analyze user interactions directly.
Seamless Omnichannel Integration – WeChat bridges online and offline engagement, making it easier to connect with consumers across multiple touchpoints.

For brands looking for a long-term, cost-efficient strategy in China, WeChat presents a powerful direct-to-consumer (D2C) model.

WeChat’s E-commerce Evolution

While platforms like Douyin and RED attract attention with viral trends, Tencent has been steadily enhancing WeChat’s e-commerce capabilities. WeChat Channels has emerged as a significant competitor to Douyin’s short video and livestream shopping ecosystem.

WeChat has streamlined merchant onboarding, simplified the sales process, and expanded commerce features to allow product purchases across multiple touchpoints—including posts, search, chat, and even gifting features. These improvements have led to substantial growth:

A 3x increase in active sellers last year
A 200% surge in total sales volume

This growth signals that more merchants are seeking sustainable alternatives to traditional e-commerce marketplaces and that consumers are increasingly shopping within the WeChat ecosystem.

Where Should Brands Focus?

Many international brands question whether WeChat should be prioritized over newer platforms like Douyin and RED or traditional marketplaces like Tmall. The answer depends on a brand’s objectives:

Douyin & RED – Best for brand awareness, viral content, and impulse-driven sales.
Tmall & JD – Ideal for reaching high-intent shoppers and providing an official retail presence.
WeChat – Most effective for fostering long-term engagement, driving repeat purchases, and building brand loyalty.

A well-rounded China digital strategy should leverage multiple platforms, utilizing each one’s strengths to target consumers at different stages of their journey. WeChat remains a key pillar of this strategy, particularly for brands looking to develop a sustainable, direct-to-consumer business model.

Leverage WeChat for Sustainable Growth in China

Navigating China’s complex digital landscape requires a tailored approach. Whether you’re looking to enhance your WeChat strategy or integrate it into a broader digital marketing plan, our team can help you optimize your presence and drive results.

Contact us today to explore how WeChat can support your brand’s long-term success in China.

Creating Your Own Red Packet Cover On WeChat—The Ultimate Guide

January 13, 2022

It is a widespread custom for adults to gift red packets containing monetary gifts to children during Chinese New Year. However, in recent years, the habit of presenting friends and coworkers has transferred to China’s super-app, WeChat. As a result, the opportunity for brand visibility and interaction arose thanks to this behavioral change. Last week, we covered different ways in which brands can engage with their audiences during the Chinese New Year, today we will dig more into how to create your own red envelope on WeChat.

What is a WeChat Red Envelope?

Tencent’s WeChat red envelope (or WeChat red packet cover – 红包封面) is a WeChat-based feature that was developed in China. But the concept itself is not new. In fact, it’s based on the Chinese tradition of hongbao (red envelope, or red packet), in which money is presented as a gift to relatives and friends.

Tencent released the function in January 2014, and it has since grown in popularity, with Tencent reporting 2.3 billion transactions on the first day of 2016.

Users can give monetary presents to other users within a private conversation or group chat in the form of virtual ‘credits.‘ A user’s WeChat Pay account gets credited with funds that can be utilized to make purchases.

WeChat offers two sorts of ‘red envelopes’: pairwise red packets, which send money from a private chat between two users, and group red packets, which distribute money in a group chat. After posting the ‘grouped’ red envelope to a group chat, the app assigns the amount in each envelope to each receiver at random. Fights for the biggest win of an envelope is a common and fun sight at the annual dinners across China.

Why Do Businesses Require Red Packets?

Moreover, there are other motivations for mobile payment companies to compete during this period, aside from the red packets being a cornerstone of WeChat’s development history. Because the Lunar New Year is the most important Chinese celebration of the year, there are more transactions than at any other time of the year.

Thus a number of other brands, such as Gucci, Louis Vuitton, Versace, Burberry, and many more have incorporated the red envelope concept into their Chinese New Year’s marketing strategies. This year with more and more hype around red packets, payees are especially encouraged by brands to transfer ‘lucky money to a friend, thereby assisting the brand in expanding its brand awareness. Sometimes, like in the came of Gucci, users need to book their slot to receive the cover they can use via a mini-program to make it more exclusive.

On the other hand, consumers may also receive a red envelope with a surprise discount after purchasing something in-store using WeChat Pay. These companies are often FMCG brands because a discount signals value and are generally not an incentive that luxury brands want to be associated with.

Step by Step Guide on Customisation Process of The Red Envelope

Step 1: Registered account and Required materials

Chinese mainland WeChat official account is open to everyone for registration: http://cover.weixin.qq.com

Red Packet Cover On WeChat

Step 2: Submission for review

Check the official WeChat page for design requirements and specifics.

Format: PNG / JPG / jpeg
Width and height: 957 * 1278 pixels
Size: ≤ 500kb

Red Packet Cover On WeChat

After you’ve finished customizing the red envelope, send it to the WeChat team for review.

Audit Cycle: The audit cycle is generally 1 working day.

Audit Result: The results will be published on your official WeChat account and sent over by mail after the audit is completed (WeChat envelopes). You can also check the status of the audit in my “seal” at the same time.

Red Packet Cover On WeChat

Step 3: Payment and refund

Select the number of users of the red envelope cover after approval and pay the payment item to create an order.

Price: The red envelope cover costs one yuan per piece.

Payment method: Payments can be made via Wechat, internet banking, or an offline transfer or remittance.

Refund: Only when the red envelope cover is removed from the shelf due to infringement, and there is a red envelope that is still within the distribution validity period and has not been successfully received by any user.

You will get a return for unused red envelopes at a rate of 1 yuan per piece.

Red Packet Cover On WeChat

Final Step

Step 4: Release cover

The cover can be distributed to the selected user after it has been properly purchased. It will expire after six months. Users will not be able to receive it after it has expired.

Distribution methods include:

QR code
Serial code
Link

According to the activity scenario, user group, collection rules, other factors, the customization party can choose the best distribution strategy.

Red Packet Cover On WeChat

Step 5: Trial cover

After each red envelope cover’s approval, ten trial covers for ten Wechat accounts can be obtained.

The cover is effective for two hours after scanning the code and can be used an unlimited number of times. The trial run expires after two hours have passed.

Red Packet Cover On WeChat

Step 6: User to use

Users can use the cover up to 3 months after they receive it as many times as they want. The received cover will automatically become invalid after the expiration date and cannot be used again.

The red envelope display, which has been sent, will not be affected.

Red Packet Cover On WeChat

Step 7: Data analysis

Following the distribution of the cover, you can view real-time distribution data. You can also check data from the previous day, and cumulative statistics on the site. It includes:

covers purchased,
covers received,
red envelopes issued,
red envelopes opened,
how many times users accessed the red envelope details page,
how many times the users view the cover story,
and the number of times the viewers skipped the cover story.

Red Packet Cover On WeChat

Conclusion

Way to carry on traditions change these days. The one thing that has remained constant is the desire to enjoy the company of loved ones during this special time of year.

Also, around this time of year, the red envelope is a great way to attract a wide spectrum of customers and build your customer base. As a result, any company seeking to build a business relationship with the Chinese market should consider taking advantage of these prospects.

If you require further assistance with customizing your red envelope, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong

Payment on WeChat, the Chinese new year Hong Bao success story

March 26, 2018

2018 is the ‘Year of the Dog’ according to the Chinese calendar and it was celebrated with grandeur. Families get together to celebrate New Year and tradition involves exchange of red envelopes with ‘lucky money’ along with positive wishes. With the modernization and technology advancements, this tradition is now also practiced via digital medium. It was in 2014, when WeChat, the mobile instant messaging service introduced the ability to send virtual red envelopes of money to your phone contacts via its mobile payment platform.

This year, WeChat witnessed a 15% surge in the number of people using the service as compared to last year. Close to 688 million people used the service on February 15th ( Eve of Chinese New Year) with Beijing, Chengdu and Chongqing accounting for the majority of the users. In a country where 95% of the population access internet through their mobile phones, more and more people prefer using WeChat to send red envelopes because of speed and convenience.

At the stroke of midnight on Chinese New Year, a shower of red envelopes or ‘WeChat Red Packets’ filled the mobile screens across China. Data shows that the highest number of red packets were exchanged amongst the post-80’s generation who accounted for close to 32%. Following them, were the post-90’s and post-70’s comprising of 27% and 22% generation respectively. These users were referred to as the ‘Red Packet Army’.

What’s more? WeChat was also able to track the fastest single user and the most generous user of the red packet. Apart from this, the time spent by users during their purchase was also tracked and the most active segments for WeChat pay were retail stores, dining and public transport.