24 June 2019

Why Wanda is different from Alibaba and Tencent

Soon after Wang Jianlin {王健林} began testing the e-commerce waters, his Wanda Group, China’s biggest private property owner, launched an online-to-offline (O2O) web portal and a mobile app called Wanhui.

Being a latecomer, Wanda’s online venture is something of an unknown quantity. It’s unclear what benefits it can bring to Wanda’s sprawling offline operations, National Business Daily reports.

Wang plans a points reward system to attract consumers to the site. The target is 100 million members in five years.

If the goal is achieved, Wanda will still lag Tencent (00700.HK) and Alibaba but it will be on par with Jingdong Mall, the country’s top business-to-customer e-commerce platform.

Wang told the newspaper that there will be nearly 140 Wanda Plazas — large commercial complexes with shopping malls, hotels, cinemas and offices — across the country by 2015. With an estimated average annual traffic of two billion customers, Wanhui can recruit enough members ahead of schedule, he said.

Unlike Tencent and Alibaba, whose O2O ventures are intended to win market share from their offline rivals, Wanhui is going in the opposite direction. It exists to support Wanda Plazas.

By gathering and analyzing the consumption habits of Wanhui members, Wang hopes to use the information to help Wanda optimize its tenant mix and spur sales with off-peak discounts.

– Contact the writer at [email protected]



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