Tencent and JD.com expand ‘retail kingdom’
Firms aim to secure an 11% stake in BKK Commercial Chain Co., the largest retail entity in southwest China
Internet giant Tencent and leading e-commerce site JD.com moved to secure a total 11% stake of BBK Commercial Chain Co. Ltd., a large, domestic chain enterprise, aiming to further expand their strategy of “new retail” to uproot more brick stores, The Paper reported.
BBK is the largest retail entity in southwest China and the ninth largest retailer in the country, involved in supermarkets, department stores, appliances, restaurants, entertainment and commercial real estate.
It is a subsidiary of BBK Electronics, a Chinese multinational consumer electronics manufacturer.
As of 2017, it has 592 retail stores nationwide, operating in Hunan, Jiangxi, Sichuan, Chongqing, Guangxi, Yunnan and other provinces and cities.
Meanwhile, insiders think China’s retail industry has gradually formed a pattern of “Tencent & JD” against “Alibaba & Suning.” Both sides are constantly building up their retail kingdoms via buying up offline retailers.