On the morning of March 10, 2014, Tencent and Jingdong (JD.com) together announced that they just reached strategic alliance. Jingdong is going to buy 100% equity, logistics personnel and asset of Tencent’s B2C platform QQ wanggou (wanggou.com) and C2C platform PaiPai (paipai.com), besides, a few stake in Yixun (yixun.com) and the right to buy the remaining stake. President of Tencent, Liu Chiping, will join Jingdong’s board of directors.
Meanwhile, Jingdong will issue new shares for Tencent, and Tencent is about to acquire 15% of the stake. In the future, Tencent will subscribe another 5% when Jingdong files for IPO. Therefore, Tencent will become Jingdong’s significant shareholder and strategic partner.
Analysts put it that the merge of e-commerce business between Tencent and Jingdong is the typical alliance between the giants. Tencent has the cutting-edge in mobile end, mobile QQ and WeChat accumulated massive mobile users, while Jingdong has strength in B2C e-commerce with 10 years experience, and developed its own logistics system. The collaboration is a win-win for both sides, it will help Jingdong’s listing in the market and entering into mobile end. As for Tencent, it will help establish an empire of WeChat, QQ and open platforms.
Tencent stated that it will open WeChat and mobile QQ API and open other major platforms to Jingdong, in order to help Jingdong develop e-commerce. They will also cooperate in online payment, to improve consumer experience.
The deal continues the open strategies put forward by Tencent in 2011. In September 2013, Tecent purchased 36.5% stake in Sogou with USD 448 million, and merged its Soso with Sogou.
By the end of 2013, Tencent came up with an ecosystem strategy based on QQ, WeChat and open platforms to connect people with product and service.
Tencent began its e-commerce business in 2005, PaiPai was the first platform. Then it launched QQ wanggou in 2008. In 2012, Tencent set up a subsidiary company for e-commerce. In May 2012, Tencent bought Yixun. In February 2014, Tencent became a shareholder in Dianping (dainping.com) which was an important step to O2O development.
Jingdong will definitely help complete Tencent’s ecosystem.