Does Tencent’s E-Commerce Move Spell Trouble for JD.com?
Tencent (OTC: TCEHY) recently launched Minishop, a new tool that lets merchants directly launch online stores on WeChat. WeChat is the most popular messaging app in China with over 1.2 billion monthly active users, so the move could set the foundations for a new e-commerce marketplace.
Tencent previously allowed retailers to set up shop on WeChat's Mini Programs platform, which also hosts games, ride-hailing services, delivery services, and other tools. But companies usually need to hire developers to create the Mini Programs, since they were essentially stand-alone apps.
The Minishop tool simplifies the process and helps vendors quickly set up WeChat shops without help from external developers. This could make it easier for merchants of all sizes to sell products on WeChat -- and it could spell trouble for China's e-commerce leaders Alibaba (NYSE: BABA), JD.com (NASDAQ: JD), and Pinduoduo (NASDAQ: PDD).
Source Fool.com
