Wanda and Tencent team up on ‘smart retail’ venture
The partnership will aim to transform Wanda’s huge bricks-and-mortar presence into ‘smart’ shopping centres, and drive online traffic through Tencent’s platforms including WeChat
Tencent Holdings, China’s social media and games giant, has launched an internet technology joint venture with Wanda Commercial Management Group, the country’s largest owner and operator of shopping centres, upping its ante in becoming a “smart” retailer, very much in line with Alibaba Group Holding’s push to integrate its online and bricks-and-mortar resources.
Tencent said on Wednesday it has taken a 42.5 per cent stake in the new yet-unnamed venture, without giving a price.
Wanda Commercial has 51 per cent, while Gaopeng, which runs an electronic invoice business and is now backed by Tencent, will hold the remaining 6.5 per cent. Gaopeng was US daily deals company Groupon Inc’s former affiliate in China.
Qi Jie, Wanda Commercial’s president, will serve as chairman of the new operation, while Gao Xia, Gaopeng’s CEO, will take on that role, under Tencent’s recommendation.
“For Wanda Plazas, the cooperation will bring in enormous online traffic through WeChat and other platforms, enabling them to undergo smart upgrades, build a robust membership system, and increase the company’s overall value,” Wanda said in a statement.
