ebay to go to the luxury electric companies to show the network and then enter China's electric business and Mai Lin cooperation

The 5-year-old ebay, which has faded out of the domestic electricity business, is gearing up to restart the layout of the Chinese market.





recently said that ebay has been with the domestic luxury electric companies to go on the show network to cooperate, the two sides may also sign an investment agreement, in addition, ebay's South Korean electricity business website Qoo10 (fun Skynet), but also with the Mai Lin launched a deep cooperation.





the above two cooperation issues have been confirmed by relevant parties. People close to ebay and the catwalk said the top 20 of ebay's companies will be introduced to the open platform and data docking through cooperation. And the Mai Lin and the interesting day cooperation, also will adopt similar platform open mode.





but whether the above cooperation involves equity investment relations, the reporter did not get the clear response to show network. This July, ebay has issued 3 billion of dollars in bonds or for investment. In Friday, the price of Macaulay rose 13.3% per cent, up from 10 times times the average of the previous 30 days. Visible capital has been affected by rumors.





NET Strategy





ebay's foray into the Chinese market began in 2002. With two investments on ebay, ebay was then given a gateway to the Chinese electric business.





However, the early ebay auction model, the integrity of the system is not sound, in addition, membership costs are getting higher. In 2006, under the impact of free Taobao model, ebay's market share in China has slipped to 20%, losing its ability to confront Taobao. Then, Tom Group bought ebay, ebay also in the Chinese electric business gradually lost the right to speak.





But that does not mean that ebay has abandoned the Chinese market. Since the fourth quarter of 2011, ebay's year-on-year growth rate has been lower and the chain growth rate has slowed sharply, which has forced its management to put the company's growth back on the Chinese market.





earnings show that ebay from the fourth quarter of 2011 to the third quarter of 2012 year-on-year growth rate is: 35.5%, 28.7%, 23.1%, 14.8%, the chain growth rate is 14%, 3%, 3.7%, 0.2%. Ebay revenue growth has shown a significant slowdown in the trend.





But the problem now is that foreign giants are not new to boosting confidence through the Chinese market.





in the past decade, ebay's success in China has been close to failure, and its top competitor in the US, Amazon, has not done well in the Chinese market.





still product network CEO Zhoshi to this newspaper said, ebay if still want to get results in China, that must change a play. At present, the domestic electricity market pattern has presented Ali, Jingdong, suning, such as the separation of several major platforms, if the channel platform to build, there are few possible winners.





from now on, ebay's return to China strategy is that the expansion of the strong vertical electric operators to expand the network of cooperation, diversification of investment model, Ali, Jingdong, Suning and other major platforms to form a "siege" of the potential.





in order to secure a quick layout, ebay should first cut into the field of fashion, famous electronics dealers. These categories have a greater reliance on overseas brands and are highly matched to ebay users. Then gradually expand the other categories to meet the scale requirements.





In fact, this is in line with ebay's global strategy. In October this year, ebay unveiled its new logo and launched its "new ebay" slogan, which is designed to enhance the benefits of social mobility, payments and cross-border services. Currently, 30% of ebay's US sellers are in cross-border trade, with 85% of Chinese sellers serving European and North American sellers. This global Cross-border service also provides support for PayPal, which accounts for 40% of ebay's revenue.





and this is also in line with the catwalk strategy. People familiar with the situation told reporters, because of the source and the bottleneck in the scale, in recent years, show network has been from high-end luxury positioning, gradually down to the two or three line brand, and has opened a group buying, mall and other open platforms, gradually pull high sales. 2011, the catwalk network has achieved sales of 1 billion yuan, and this year's goal is to achieve twice times growth.





Short Board





ebay in China in the short term, mainly with the fashion, famous type of electrical business cooperation and even investment, but to achieve its goal in China, is certainly a scale-oriented. One industry personage thinks, the scale is the purpose that the electric power trader enters China, only the rhythm of the expansion has changed.





but some domestic electric dealers are still not optimistic about the future of ebay's entry into China.





and Amazon different, ebay platform is more media attributes, mainly from advertising fees, and in warehousing, logistics and other services can not bring more resources to its partners.





Yi Zongyuan, vice president of the network told reporters that the current domestic electricity dealers are not the capital of competition, but supply chain and deep operation of the competition, but these aspects of ebay does not have too many advantages.





this kind of resources for domestic luxury goods, famous electric business is also scarce. In addition to sourcing factors, luxury goods logistics and distribution links often have higher requirements, there is no good supply chain services, will also result in a large number of users lost.





Yi Zongyuan said that the current domestic electricity dealers, in addition to capital requirements, more important is the internal management and operational capabilities. Some electric dealers monthly revenue less than 20 million, loss of millions of, even on the platform with more brands, also unable to save users.





Zhoshi said that ebay's road to China is still very long, but its globalized user resources, as well as overseas payment channel PayPal, for the domestic electric business to go outside, still has a greater temptation.