Dalian Wanda Launches $1billion Tmall Rival FFan.com

Dalian Wanda Launches $1billion Tmall Rival FFan.com

18 August, 2015 - Uncategorised

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China’s largest entertainment and hospitality conglomerate Dalian Wanda just launched e-commerce site FFan.com (Fei Fan in Chinese) this month. The site’s long term aim is to compete with rival site TMall that dominates the Chinese B2C e-commerce industry with a 50% market share.

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Dalian Wanda is headed by billionaire Wang Jianlin, who with a personal fortune of US$24.2 billion is the richest man in China and 26th richest person in the world and a 20% owner in Atletico Madrid (Hurun Report, Forbes). The company’s original success came from establishing China’s largest network of movie cinemas before diversifying into hotels and department stores. In 2012 the company expanded internationally with its $2.6 billion buyout of AMC Entertainment, the largest movie cinema chain in the United States. The company has also committed to $1 billion to the development of One Nine Elms, its first overseas development, as part of the London Nine Elms rejuvenation project.

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Tmall on the other hand is part of the e-commerce conglomerate Alibaba Group which also includes the C2C Taobao and B2B Alibaba.com e-commerce sites. The company is headed by the China’s second richest man Jack Ma.

FFan.com represents Wanda’s first foray into the world of e-commerce. The site only launched this month currently offers restaurant reservation, food delivery, cinema booking and product collection purchasing from Wanda’s extensive network of department stores. However, plans are to roll out other product classes over time with the aim to sign-up 100 million loyalty subscribers by the end of the year.

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FFan.com has been launched with a total $814 million investment from Wanda as 70% lead investor in a joint venture arrangement with two of China’s leading internet companies: Baidu, China’s primary search engine provider and Tencent, China’s leading digital developer responsible for the popular WeChat app. Both of whom are also competitors of Alibaba Group. A further $161 million has been raise through venture capital.

Whether FFan.com poses a challenge to Tmall? Only time will tell. Alibaba Group has been having a tough time of late with a huge loss in stock price value following a recent flotation on the New York Stock Exchange and is already losing market share to smaller but fast growing e-commerce site JD.com (Jingdong) who with a 20% market share is currently growing at a 80% annual growth rate.

For more specific information relating to e-commerce in China, please contact Steven Bywater. E-mail: s.bywater@wei-ukconsulting.com or give us a call on +44 (0)2036423899. Or attend our “Intro to the Chinese Digital Landscape” event to be held a Google Campus London on August 24th in partnership with General Assembly. For more information about our event click here.