The heart of tech

This article was published on January 15, 2014


    Chinese messaging app WeChat is likely to get an e-commerce boost as Tencent inks logistics deal

    Chinese messaging app WeChat is likely to get an e-commerce boost as Tencent inks logistics deal
    Kaylene Hong
    Story by

    Kaylene Hong

    Kaylene Hong was Asia Reporter for The Next Web between 2013 and 2014, based in Singapore. She is bilingual in English and Mandarin. Stay in Kaylene Hong was Asia Reporter for The Next Web between 2013 and 2014, based in Singapore. She is bilingual in English and Mandarin. Stay in touch via Twitter or Google+.

    Chinas-Tencent-Purchases-Google-backed-Social-networking-CompanyChinese Internet giant Tencent is making a firm commitment to e-commerce today, with its announcement of a HK$1.5 billion ($195 million) investment in China South City today, a logistics and trade center operator. This hints that Tencent-owned WeChat, a wildly popular messaging service in the country, could see e-commerce becoming a larger part of its future — given that it has already taken a huge step forward in this aspect.

    Tencent president Martin Lau says that as Chinese firms seek to expand their businesses online, teaming up with China South City allows the company to “jointly facilitate such enterprises migrating online, utilizing China South City’s physical locations and logistics capabilities, together with Tencent’s Internet user platforms and technology capabilities.”

    Tencent’s move comes as its rival, Chinese e-commerce giant Alibaba, recently invested $364 million into electronics manufacturer Haier Group, seeking to extend its logistics and delivery capacity. 

    Related:Here’s why a war has started between Chinese Internet giants Tencent and Alibaba

    Thumbnail image via Faykwong / Flickr