Two retail and Internet giants cooperate

Heilan Home, a national men's clothing brand owned by Heilan Group, ranks first in the Chinese textile and clothing industry. [Photo/finance.ifeng.com]

Heilan Home, a national men's clothing brand owned by Heilan Group, received 2.5 billion yuan ($0.4 billion) in investments from Tencent Holdings Ltd, one of China's two internet heavyweights which has a 5.31 percent stake in the company, reported Heilan Home Co Ltd on Feb 2.

Founded in 2002, Heilan Home Co Ltd has developed into a large-scale modern clothing supply chain with a strong brand, excellent management, leading technology, and fashionable products. In 2016, Heilan Home was included in the "2016 Hurun Brand List" with a brand value of 11 billion yuan ($1.7 billion), ranking first in the Chinese textile and clothing industry.

Tencent Holdings Ltd, one of China's internet heavyweights, sets its sights on the offline retail market. [Photo/sohu.com]

As a wholly-owned subsidiary of Heilan Group, the first enterprise in Wuxi to earn over one hundred billion yuan ($15.8 billion) in 2017, Heilan Home has over 5,600 brick and mortar stores and has received a lot of attention as the top clothing brand in China.

Investments from Tencent Holdings Ltd have become a heated issue. Analysts point out how it intensifies the war between China's top two internet heavyweights, with Tencent Holdings Ltd making a strong push into the offline retail market where its archrival, Alibaba Group Holding Ltd, already has an established presence.

Actually, Tencent's investments have indeed opened the door for the company to move into the retail market with the help of the nation's most influential name in the clothing industry. It is also a great opportunity for Heilan Home to attract more potential consumers and upgrade its brick and mortar stores with the support of Tencent.

The Heilan Home Co Ltd stock opened for trade on Feb 5, 2018, after it announced its cooperation with Tencent Holdings Ltd. [Photo/finance.ifeng.com]