On May 18, Zhang Yin, CEO of Lianyin Technology, was invited to participate in the [ASEAN Blockchain Development New Opportunities · Social E-Commerce 3.0] live forum hosted by Block Technology. Explore the different sparks that the combination of blockchain and social e-commerce can make.

The following is a text version of the content shared by Ke Zhang  CEO of  Lianyin Technology.

Ke Zhang: Thank you for the invitation from Block Tech. I am fortunate to discuss on the topic of social e-commerce 3.0.

The hotspots of blockchain in 2020 will continue. The central bank's digital currency DCEP conducts the landing test, the third halving of Bitcoin's completion and the national strategic deployment of "New Infrastructure" projects and other hotspots indicate the advent of the blockchain future.

All the industries are studying "Blockchain Empowers Economy", because only by combining the blockchain and the physical industry can the core driving force of the blockchain be truly released. Let me share some personal views of blockchain empowers social e-commerce.

Social E-commerce Development Trends

Firstly, let me briefly introduce what is social e-commerce. We all know that Taobao, e-commerce is the abbreviation of e-commerce, popularly speaking is online shopping, social e-commerce is to do e-commerce through social relations.

The development of social e-commerce has experienced two major stages:

Stage 1.0: Wechat Business Stage

Wechat business is an e-commerce that uses WeChat as a sales channel. It started overseas purchasing in 2013, and its development peak occurred in 2016. Most of the early weChat merchants sold single product, established hierarchical agents, and laid out goods from top to bottom.

Pain point: The quality of the goods is uneven, the quality accidents are occurred frequently, the product type is similar, the exclusivity is strong, and the development is easy to reach the bottleneck. The market competition is getting fiercer, and many agents hoard a pile of goods that cannot be sold.

Stage 2.0: Platform-based Social E-commerce

Since from 2016, WeChat began to grow to a platform-based regular team from the brutal growth. The most typical representatives are the rise of social e-commerce platforms such as Yunji and Global Catcher. Platform-based social e-commerce products began to emerge, and promoters no longer need to hoard goods, only need to buy a 398 RMB gift pack to start a business, and make money by sharing platform products. Subsequently, various social e-commerce platforms emerged rapidly, and with the listing of Yunji in 2019, they reached a peak of development. The success of Yunji is actually due to the rapid fission of the gift packs, which generates traffic, produces wealth effects, and attracts more people to join.

Pain point: Due to the existence of a large number of promotion rebates, compared with traditional e-commerce platforms, it is difficult to have a price advantage, and it is impossible to lock consumers for continuous consumption for a long time.

Where is the Next Era of Social E-commerce?

The core of social e-commerce is the word social, that is, make money by sharing. However, consumers cannot buy better products than other platforms, so consumers will not continue to consume on the platform.

If you can provide high-quality products and share profit, and continue to attract consumers, social e-commerce will inevitably enter the 3.0 era!

There are many opinions about social e-commerce 3.0 on the market, but what does social e-commerce 3.0 means? 

We start looking for answers to some interesting questions:

If we buy a 100 RMB product on Taobal, how much wealth have we created?

The answer is: More than 200 RMB. To be more specific, it is 100 RMB in cash and more than 100 RMB in financial wealth (according to Alibaba's price-to-earnings ratio)

If we return 100 RMB of financial wealth generated by consumers' shopping to consumers, does it mean that consumers have not spent money on shopping? Will consumers go to other platforms to buy products?

Of course, Taobao cannot do this because Alibaba's financial wealth belongs to shareholders, not consumers.

However, we can use the technology of blockchain and the underlying logic of the token economy to make the consumption value return to consumers.

  1. The use of blockchain technology can solve problems such as supply chain finance, supply chain credit, and traceability of commodities in the social e-commerce industry, and ensure that consumers buy quality and good products.
  2. Utilize the underlying technology of the blockchain to bind the interests of consumers, promoters and platforms, and record the contribution to the platform construction generated by all production, promotion, consumption and investment through the token, everyoneearn revenue based on contributions.The income allows everyone to benefit from the economic growth of the token, so that the value generated by consumption returns to the consumers themselves.

Therefore, the use of blockchain technology and the underlying logic of the token economy allows consumers to buy high-quality products while gaining more wealth.

Therefore, I believe that the social e-commerce platform empowered by blockchain will have better products, faster fission, and stronger user stickiness, and truly let the social e-commerce platform enter the 3.0 era!

Moderator: Mr. Zhang's views on social e-commerce 3.0 are very unique, so could you share any ongoing work on Mr. Zhang's side?

Ke Zhang:Sure, social e-commerce 3.0 is a trend. I am the Deputy Secretary-General of the Life Science Industry Association. We have many rich resources for the life sciences health field, including top quality product production lines and academician product rights. At present, the social e-commerce 3.0 platform we have built, Lianyin Kangcheng, is growing in an orderly manner.

In the early stage of development, we also inevitably encountered the development bottleneck of the social e-commerce 2.0 stage. It is impossible to guarantee the effective repurchase rate of the product solely by stimulating consumers through sharing. Therefore, we chose to join the health alliance chain HAC and become a HAC China partner. Through the introduction of blockchain technology to improve quality assurance, we have realized the power of great health assets from R&D-Production -Transportation-Sales and other industrial process to establish a sound and complete great health industry system.

Every product of Lianyin Kangcheng uses blockchain technology to ensure the quality. Uploading blockchain technology on the chain to protect users' rights and interests, and use point tokens to motivate consumers. Allow consumers to fully enjoy dividend rights, redemption rights, investment rights and free trading rights, and finally return the rights and interests generated by consumers to consumers, let consumers own high-quality products, start businesses faster, and enjoy more income, so that everyone can really participate in social e-commerce 3.0.

In the future, we will continue to work hard to improve and provide you with more and better quality goods and point token services to jointly witness the growth of social e-commerce 3.0.