Early today, Baidu confirms its strategic investment in TG.com.cn, the leading e-commerce service with focus on home-decoration.

TG.com.cn, first launched in March 2005 with the Chinese name, Shanghai Group Purchase. It focus on local home-decoration product group purchase and now expanded to 27 major cities in China. TG.com.cn has over 3millions active member and 700K daily visits. In the year of 2008, the amount of transaction via its group purchase platform reached rmb 1.5billion, in 2009 rmb 3.2billion and rmb 6.5billions expected in 2010.

In a talk with one of TG.com.cn co-founders several months ago, he explained its unique B+B to C online e-commerce model. Basically TG.com.cn (B) cooperates with different products/service suppliers (B) to provide a package of services including home-decoration related service, wedding, furniture purchase etc to the end customer (C) who usually ages between 25-40. In China, most people prefer hiring a home-decoration company for home design and furnishing. But normally, the price for all the materials is not transparent and the quality and progress of the work is not easy to be monitored. TG.com.cn not only offers group purchase together with home-decoration shopping malls across Chinese major cities, but also an online platform which facilitate customers choosing best design for their home, buying products as well as monitoring home-decoration company’s work progress.

Baidu’s investment in TG.com.cn is reported as the company’s serious interests in vertical B2C e-commerce market. Cai Hu, general manager of Baidu e-commerce department said, over 40% of search on Baidu is about personal consumption, home-decoration/improvement is obviously one of the most important sectors in Chinese life.