WeChat, which is owned by Tencent Holdings Ltd., said that the business messaging service is specifically being designed for work-related communication. (Photo : Reuters)
Haier, a known home appliance brand, launched e-commerce platform"Weishang" on July 2, allowing individual vendors to sell through social networking app WeChat, China Business News reported.
The company, which posted an annual sales of 200.7 billion yuan ($32.34 billion) in 2014, designed an app that allows its employees to register to Weishang to sell the company's products at a cheaper price, said the report.
Haier announced that it will give at least 2 percent commission to the 30,000 recruited and authorized individual vendors for selling the company's products, the company stated on July 1.
Weishang was developed for vendors to advertise and promote products via WeChat's "Moments" feature, allowing users to receive updates for their online friends.
With over 20,000 vendors joining Haier's new online sales platform, official Sun Hailong said that their company is open to other home appliance companies to sell their products using Haier's online app.
The new platform welcomes a new age in Haier's distribution strategy, with its 32,000 stores all over China. It is also included in Haier's U+ smart living program, with electronic companies providing designs and products that can be useful in smart homes, according to Sun.
Haier made its presence felt, both in urban and rural markets, when it opened its own stores 19 years ago to lessen the control retailers had over the distribution of products.
Wang Peng, from market research firm AVC, said that Haier has long ago been encouraging employees to sell the products themselves, and that the new e-commerce platform is here to show the model the company built to operate the Weishang business.
Haier's distribution unit, Gooday, has already joined the Weishang business, and is lacking 100,000 individual online sellers for Haier and other companies, said the report.
Meanwhile, Midea, known competitor to Haier, and electronic retailers Suning and Gome, have also started similar initiatives early this year, urging their employees to use WeChat when selling their products online.
Some of their employees have reached monthly sales of 200,000-300,000 yuan ($32,200-$48,000), proving that the marketing tactic has attracted audience and sales for the company's online network, Suning said.
