Creating a New Benchmark in All Domains: Botanee Group and Tencent Smart Retail Upgrade Strategic Cooperation

Creating a New Benchmark in All Domains: Botanee Group and Tencent Smart Retail Upgrade Strategic Cooperation

On March 15, Yunnan Botanee Bio-Technology Group Co., Ltd. (Botanee Group) and Tencent Smart Retail signed a strategic cooperation agreement in Shenzhen. Based on their existing cooperation, the two parties would further strengthen their practices in three key areas: the private domain strategy and operation, Tencent Smart Retail digital products, and Tencent Cloud infrastructure. This aimed to rapidly improve Botanee Group's private domain operation capability and jointly explore a path for all-domain growth. Behind the upgraded strategic cooperation with Tencent Smart Retail lies Botanee's determination to strengthen its digital retail capability and attract more consumers.

As a health consumer goods enterprise deeply integrating its product sales channels with the Internet, Botanee Group has always placed great emphasis on the construction of digital systems. It recognized the necessity of private domain operations very early and began to explore private domain traffic. Since 2017, Botanee Group has been working on building its private domain system. At present, the private domain traffic pool the Group has established (combining private and public domains) includes the "Counter Service Platform" and "Mini Program Store" built by its flagship brand "Winona" on the WeChat Mini Program, WeChat official account, video accounts, WeChat communities, and offline shopping guides. After attracting traffic to the WeChat Mini Program through offline shopping guides, WeChat advertisements, and other offline and online contact points, Botanee Group considers WeChat Work and WeChat communities as key areas for it to communicate with and operate private domain customers. Meanwhile, a series of activities such as customer acquisition, product promotion, and fission are implemented to finally contribute to orders on the WeChat Mini Program.

In 2022, Winona achieved retail revenue of more than RMB 650 million in the private domain and its private domain customers reached 3.29 million. Both average transaction value and repurchase rate in the private domain are significantly higher than those of e-commerce platforms in the public domain. In the 2022 Tencent Smart Retail Multiplier Initiative, 237 leading retail enterprises from over 20 industries competed for more than four months. Winona ranked top in the list of single cosmetic products in the Initiative due to its outstanding performance in private domain operations. It has received a series of blockbuster awards such as the "S-level Rating of Smart Retail Four Power (i.e. Organizational Power, Commodity Power, Operational Power, Product and Data Productive Power)", the "First Prize of the Multiplier Initiative", the "Outstanding Brand Growth Award", and the "Special Award for Business Exploration of Brand 'Innovative Marketing'". As the only benchmark case in the beauty industry, the brand was selected into the Guidance for All-Domain Business Growth 2022.

As a leading enterprise in the domestic Internet sector, Tencent started to explore the retail private domain operation at an early stage relying on its profound influence on the user side. The launching of the Tencent Smart Retail Multiplier Initiative aims to help enterprises establish an omni-channel private domain ecosystem and increase the proportion of retail enterprises' GMV (Gross Merchandise Volume) in the private domain.

As the strategic cooperation upgrades, Botanee Group and Tencent Smart Retail will further enhance their partnership, laying a solid foundation for future cooperation. Under the collaboration of the two industry leaders, Botanee Group and its brands will provide more valuable services to consumers in the future, thus encouraging more people to participate in the construction of China's skin health ecosystem.