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Alibaba and Tencent lead an aggressive battle for allies in retail market

Alibaba

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Chinese technology giants Alibaba Group Holding and Tencent Holdings, which have a total market value of 1 trillion USD does not stop its series of investments, forcing retailers to choose which side to take in the face of the battle for digital buyers. Since the start of last year, the two companies have spent more than 10 billion USD on retail-focused deals to promote their online presence and physical stores.
The aggressive approach, backed by solid capital and rising stock prices, is part of the battle for winning consumers and shop operators using the competing services of both companies.
Alibaba is China’s largest e-commerce player, and its subsidiary, Ant Financial, is the leader in mobile payment services. Tencent’s strengths its positions in social networks, digital payments and gaming. In addition, it has a majority stake in the second largest online ecommerce operator JD.com.
Tencent and JD.com have an increasing number of allies, including French Carrefour, who announced that they could get a potential investment from Tencent, as well as US giant Walmart, who has a stake in JD.com.
Tencent also acquired a stake in Younghui Superstores, Vishop Holdings and Heilan Home, at the Wanda Commercial shopping center operator, and recently made a deal with Bubugao.
In turn, Alibaba invests more actively in Suning.com, Intime Retail, Sanjang Shopping Club, Lianhua Supermarket, Wanda Film and Easyhome.
The key to the battle is the mobile payments market in China, which reaches 13 trillion USD. On him Alibaba and Tencent are side by side.