Tencent & JD.com to jointly invest $863 in e-fashion retailer Vipshop

Date: 2017-12-18   Author: Pankaj Singh  Category: #market

Tencent & JD.com to jointly invest $863 in e-fashion retailer Vipshop

Tencent, China’s $500 billion social media giant along with its e-commerce partner JD.com, has agreed to invest $863 million in the Chinese online fashion retailer Vipshop, a move that is speculated to be a part of Tencent’s ongoing efforts at subduing Alibaba, another e-commerce giant that has witnessed phenomenal financial success in 2017.

Tencent will apparently be buying $604 million shares of Vipshop, while JD.com will be buying $259 million shares, which will result in both of them paying 55 percent premium for the stock. After the completion of the deal, it is speculated that Tencent will own 7% and JD.com will own 5.5% of the total stock issued by Vipshop. This investment will allow both Tencent and JD.com to appoint one board member each for a two-year locking period.

Through this deal, JD.com is reportedly looking forward to making further inroads into the fashion space and expand its reach in the fashion business. As per Tencent President Martin Lau, the deal would help Vipshop gain access to Tencent’s marketing solutions, audiences and payment support that would aid the company to expand the reach of its branded apparel market to the rising Chinese middle class. JD is likely to provide a prominent position to Vipshop on its main page, helping Vipshop to achieve some of its gross merchandise volume targets, while Tencent will include Vipshop into its wallet section of Weixin – the Chinese version of the popular WeChat app. This proposed investments is slated to be highly beneficial for Vipshop, but in addition, experts say that it would also provide the users of the Tencent applications with a more vivid online experience.

Tencent’s investment in Vipshop is a continuation of the company’s investment spree in 2017, as it has already invested in some of the most leading consumer companies such as Spotify, Tesla and Snap.



About Author


Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Roaming Tariff Market Size | Global Industry Analysis, Segments, Top Key Players, Drivers and Trends to 2026

Author: Sachin Pashte

The study on the global market for Roaming Tariff evaluates historical and current performance of this market, especially highlighting the key trends and growth opportunities. According to the study, the rising demand for this product is driving t...


Road Construction Machinery Market forecast unveils appealing opportunities over 2021-2026

Author: Sachin Pashte

The latest research at Market Study Report on Road Construction Machinery Market provides a comprehensive analysis of the Road Construction Machinery market segments, including their dynamics, size, growth, regulatory requirements, technological t...


Digital Signal Processors (DSP) Market 2021-2026 Detailed Analysis and Growth Strategies, Regional and Recent Scenario Analysis

Author: Ashwin Naphade

Decoding Covid-19 impact on Digital Signal Processors (DSP) market over 2021-2026, with report inclusions as growth determinants, challenges, and revenue generating prospects.

The latest Digital Signal Processors (DSP) market report is a...