GUANGZHOU -- Tencent Holdings has bagged deals in recent days with two bricks-and-mortar outfits, further highlighting the Chinese tech company's bid to transform the country's retail market.
Tencent will spend 2.5 billion yuan ($397 million) to acquire a 5.31% stake in Heilan Home, a Shanghai-listed menswear seller. Tencent, best known for its WeChat app, intends to use the investment to create a new retail service fusing internet technology with the apparel industry. The two companies also agreed to set up a 10 billion yuan fund, seeking to strengthen Heilan Home's brand.
Tencent also formed a business partnership with Better Life Commercial Chain Share, a Shenzhen-listed company that operates supermarket and other retail chains mainly in southern China. Tencent will make use of its social media platform in the tie-up to offer a new retail service.