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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