Both companies will also cooperate on online payment services, as they seek to improve the online shopping experience of customers. WeChat in China has already integrated payment options, and the partnership will no doubt give more emphasis to that.
Martin Lau, the president of Tencent, says: "Our strategic partnership with JD will not only extend our presence in the fast-growing physical goods e-commerce market, but also allow us to better develop our enabling services such as payment, public accounts and performance-based advertising network to create a more prosperous ecosystem for overall e-commerce activities on our platforms."
Tencent has been thirsty for success in e-commerce as it seeks to tap on its large userbase from its social platforms, especially WeChat, seeking to come up against Chinese e-commerce giant Alibaba.
A combination of Tencent and JD's e-commerce businesses will no doubt lead to a stronger push for e-commerce on WeChat. It's still an early start to the year, but Tencent has already been taking steps to boost its e-commerce presence on WeChat via a $50 million investmentin 'China's Yelp' announced yesterday, as well as a logistics deallast month.
Tencent and JD's partnership can be viewed as waging war on China's e-commerce stalwart Alibaba -- and it will pose a huge threat to the latter, which is already stepping up its mobile social efforts. Alibaba's CEO Jonathan Lu has pledged to continue the e-commerce giant's string of big investmentsas it continues focusing on improving its services for mobile - and the company has launched mobile gamesand upped efforts to promote its chat app, woo mobile shopperswith free data and even give away free smartphonesto retailers in China.
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