China’s Tencent Invests USD1 Billion In E-commerce Subsidiary
Ma Huateng, chairman and chief executive officer of Tencent, has announced plans to invest USD1 billion in its independently operated e-commerce holding company.
This is a major investment of this Chinese Internet company following its restructuring and establishment of six business groups and an e-commerce holding company.
In addition, Tencent announced the appointment of Liu Chiping, president of Tencent group, as new chairman of the e-commerce holding company.
Wu Xiaoguang, chief executive officer of Tencent’s e-commerce holding company, said that the e-commerce holding company will use most of the investment to improve service experience. It will integrate its various businesses such as Internet shopping website Paipai.com, the official store of QQ, digital e-commerce website 51buy.com, mobile e-commerce, lifestyle services, and digital publishing to establish an open e-commerce platform.
Wu said Tencent will focus more 3C and digital products. In regards to warehousing and logistics, Tencent will accelerate its distribution and enhance the construction of nationwide warehousing bases and logistics centers, improving the complete experience from supply chain, partner, platform to logistics. He also said that the e-commerce holding company will continue to pay close attention to emerging companies and investment opportunities in the e-commerce sector.
So far, Tencent has completed investments in many Chinese e-commerce enterprises, including shoes B2C website Okbuy.com, 3C e-commerce website 51buy.com, luxury goods e-commerce website Kela.cn, and tourism e-commerce website 17u.cn.