(Yicai Global) March 21 -- Chinese internet mammoth Tencent Holdings Ltd. formally announced the set up of a smart retail strategic cooperation division and elaborated on the concept and core ideas of the company's smart retail for the first time.

Tencent Vice President Li Jinghua gave a speech today at the three-day 2018 Digital Retail Innovation Conference sponsored by the China Chain Store & Franchise Association which convened in Shenzhen yesterday. He explained how smart retail can improve operating efficiency, optimize the customer experience, and create new business opportunities with retailers leading the market, Tencent Finance reported.

The large shopping malls across the country Dalian Wanda Group Co. owns present an apt example. Tencent introduced its WeChat applet for Wanda Plaza at the end of last year which links to popular messaging app WeChat to share user data with various stores in the mall. The applet increased overall customer visits by 45 percent by issuing coupons and promotional information.

The main retail business model in the current phase is a dual mode one that combines offline stores with e-commerce platforms, but it does not solve the problems of high offline store rental costs and labor costs, while online businesses are too dependent on e-commerce platforms in their operations, and thus operational independence and user data are weak, thus making it harder to improve efficiency, Lin said. Tencent's new retail technology can bring retailers closer to consumers, help them take the initiative in their operations, and truly realize the integration of online and offline operations, Lin believes. In addition to the WeChat applet, the company's WeChat Pay, QQ Wallet, Tencent Cloud, social advertising and other products also provide services to retailers.