Mubasher: China’s top tech companies Alibaba and its rival Tencent Holdings are competing fiercely in the retail market, forcing merchants and consumers to choose sides and combine under one of their umbrellas.

Combined Alibaba and Tencent have invested over $10 billion on retail deals since the beginning of 2017, battling to win over consumers and store operators.

This rivalry, which includes a competition in payment, logistics, social media, and big data services, would boost the Chinese giants' reach both online and on the ground and may result in fewer independent retailers.

“All of the retailers in the brick-and-mortar world are very worried. They have to take a side. Otherwise, they are afraid they will be eaten alive in the future,” commented Jason Yu, general manager of market research firm Kantar Worldpanel.