Friday, December 24, 2010

Wal-Mart invests in Chinese e-commerce firm

SHANGHAI: ''Wal-Mart Stores Inc, the world's largest retailer, has invested in China's top online seller of consumer electronics and communication products, in a push to extend its reach to more Chinese buyers.

Chinese online business-to-consumer (B2C) company 360buy Jingdong Mall secured US$500 million in funding from six strategic partners, including Wal-Mart, a 360buy spokeswoman said on Friday.

Wal-Mart's investment amount was not disclosed but the company has been eager to tap into the pocketbooks of China's burgeoning middle class, and earlier this year launched in China an e-commerce site for its Sam's Club warehouse stores.

"It's a smart move for them (Wal-Mart), because 360buy, in my opinion, is one of the best B2C online companies in China today," said Michael Clendenin, managing director of RedTechAdvisors, a TECHNOLOGY [] research firm.

360buy chief executive Liu Qiangdong told a press conference on Thursday that the funds would be used to build logistics centres in China, local media reported.

China's massive e-commerce market is highly fragmented and competitive, where 360buy battles Taobao, a unit of Alibaba Group and E-Commerce China Dangdang Inc for dominance. 360buy had 14.1 percent of China's B2C market in the third quarter while Dangdang had 3.7%, according to data from Analysys International. ' Reuters


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