It looks like Wanda, the Chinese Real Estate (Shopping Mall) company is attempting to do what no other company online ‘marketplace’ has done thus far – online to offline. eBay has made attempts and failed, likewise Google and Amazon to a large extent. Possibly the only player in the space today of scale is Instacart, who ironically have just raised a ton of money to go after the opportunity.
Wanda E-commerce hopes to differentiate from Alibaba and other rivals like JD.com by focusing on an online-to-offline business model. Wanda claims that its various holdings give the “world’s largest offline consumer network,” with 1.5 million customers in 2014, a number that it expects to reach six billion by 2020. The company’s advantage is that it already has a significant number of brick-and-mortar retail businesses that it can leverage to gain customers and data for its online services.
The opportunity is unprecedented – attempting to develop a true multi-channel marketplace model that allows shoppers to seamlessly shop in store and online. How exactly Wanda will pull this off (like Instacart’s financials) is unclear at this stage. For sure, we’re not seeing the rise of bricks and mortar utilizing this model so there’s no reason it shouldn’t work for the marketplaces either.