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TMCNet:  Tencent Consolidating Online Shopping Business

[April 05, 2012]

Tencent Consolidating Online Shopping Business

HONG KONG, Apr 05, 2012 (SinoCast Daily Business Beat via COMTEX) -- Chinese Internet service provider Tencent Holdings Ltd. (SEHK: 0700) is attaching more importance to the domestic B2C market.

According to people in the know, it has begun consolidating online shopping business internally and Paipai.com, a C2C unit, would be merged into Buy.qq.com, a B2C unit, in the first half of this year.

Statistics show that Tencent's ecommerce platform is consisted of three parts, namely Paipai.com, Shop.qq.com and Buy.qq.com, and the sales it reaped last year hit about CNY 25 billion. The company declined to reveal more about the timetable in an interview on April 4, but confirmed that more importance would be attached to Buy.qq.com this year. In detail, premium vendors on Shop.qq.com would be upgraded onto Buy.qq.com as a whole and Paipai.com would redebut as a marketplace of Buy.qq.com. After the merger, personnel changes related to executives of Buy.qq.com would be launched, but the move would deliver little impact on vendors on it.


Wu Xiaoguang, senior vice president responsible for ecommerce at Tencent, said at a forum in Shenzhen not long ago that consolidation would be a major task of it this year. Some top executives of it also disclosed that resources would be invested in building a new ecommerce platform and based on Buy.qq.com, other related assets including Paipai.com and Shop.qq.com would be consolidated in a bid to build a super ecommerce platform with unified quality, brand and user experience. Some large vendors on Shop.qq.com had been upgraded onto Buy.qq.com and life service related businesses including group-buying, ticket and travel would be consolidated onto the platform, too.

As the nation's top two C2C platforms, Taobao.com and Paipai.com seem to be attached less importance by their parents nowadays. And in line with industry observers, the boom of Tmall.com, the B2C unit of Alibaba Group, and Buy.qq.com is expected to become a direction indicator for domestic online shopping market to shift. B2C business sees share exceed that of C2C business in developed countries including the US, South Korea and Japan and in the Chinese market, it sees growth exceed that of C2C business. It has become a trend for people to do shopping through the Internet and instead of low price and rich varieties, they pay more attention to high quality and good service currently. Head of a domestic B2C website pointed out that 2012 would be a very important year for C2C websites in the market to shift into a B2C one and quality as well as service had become core competiveness of ecommerce websites here.

(USD 1 = CNY 6.31) Source: www.bjd.com.cn (April 05, 2012)

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