New Express, 8/04/11
Chinese internet giant Tencent (0700.HK) has announced plans to invest RMB 500 mln in marketing funds to bring quality merchants to B2C and C2C e-commerce platform Paipai, develop an e-commerce open platform strategy, and launch a new "super B2C" platform by Q4 2011.
Hou Yanping, deputy GM of Tencent's e-commerce division, which oversees both Paipai and QQ Mall, said that Tencent has been reorganizing its e-commerce business lines since May 2011, including merging Paipai and QQ group buy operations, bringing third-party merchants to Paipai's open platform and providing them with support, and monetizing Paipai by auctioning advertising space on the site. Third-party brand merchants have seen sales on the platform grow: for example apparel brand Jeanswest's average daily sales rose from RMB 4,000 last year to RMB 40,000 this year, while menswear brand Sportica saw sales increase over 500% YoY.
Tencent expects the number of major brand stores on Paipai to increase to over 150 by the end of the year. Tencent will also allow merchants to purchase ads on Paipai's homepage, channel pages, and themed promotional webpages.
Tencent plans to launch its new B2C platform in Q4 2011, according to Hou, who said the goal is to bring on major retailers. Wang Yong, marketing VP of online diamond B2C Kela, confirmed that Kela will be the new platform's exclusive diamond retailer, adding that Kela plans to cooperate with Tencent's various open platforms including QQ Caibei reward points and Tencent Microblog.