Sources internal to Huixiadan confirmed the strategic investment made by Tencent for the e-commerce platform
Tencent invests in B2B e-commerce. To reveal it, or rather to confirm it, is the Chinese platform concerned: Huixiadan. This, in fact, confirmed the strategic investment made by Tencent in their shares.
Founded in 2015, Huixiadan includes prestigious brands worldwide. On the platform you can buy consumer goods directly from distributors, thanks to the partnership between the e-commerce company and over 120 stores in 24 provinces of China.
The purpose of Huixiadan – which includes partners like Coca-Cola, P & G, Mengniu Dairy and Uni-President – is to improve the efficiency of the distribution process, facilitating communication between retailers and distributors. The new partnership would create synergistic effects between Huixiadan, its partners and the Tencent-based WeChat ecosystem, with big data going to intersect with the intelligent retailing system.
China has 6 million offline stores worth around RMB 2 billion
As demonstrated by the report of the Kantar research institute, China has over 6 million offline stores. These, on the whole, reach a value of 2 billion RMB, or around half of the Chinese market. Having this scenario in front of us, we can understand how Tencent’s investments in Huixiadan confirm the desire to digitize traditional brands and offline retailers.
The Tencent competitor, Alibaba, has also launched similar initiatives to renew the retail landscape in China. Supported by its product channels, by its ordering, logistics and marketing capabilities, Alibaba is in fact reaching franchise partnerships with offline grocery stores, located in residential communities throughout China.
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