Almost without exception, American Internet companies failed in China, with eBay being the post child of such failures. While some of them never come back, the others are coming back, still with eBay being the post child of such returners.
The rumor is whirling that ebay is planning to enter Chinese b2c market via an investments into Xiu.com, a Shenzhen-based luxury site.
In 2003, eBay spent US$ 180 million at EachNet to buy into Chinaโs nascent C2C market, only failed to secure a firm footing here with markets being cannibalized by Alibabaโs Taobao. By 2006, when TOM took over the control of EachNet, eBay signed an agreement with TOM promising no direct competition with Eachnet in five years. Probably one of the reasons why eying the rising of Taobao eBay never did anything to catch up with its apprentice other than just sat there watching.
But eBay by no means wanted to give up Chinese market which is booming and becoming the fastest growing b2c market. Now with the expiration of the restriction, eBay has showed signals of dipping toes into China again. The investments into Xiu.com would establish a mutual cooperation relationship between the two in terms of funding and business operation. Details would be disclosed on 12th this month.
Why investing into xiu.com, never drew on from your experience? Some might criticize on that. Well for your information, Chinese B2C2C market is totally different from what it was back several years ago, thereโre more ferocious competition among more rivals equipped with more funding than ever before. Starting from scratch might be the last thing eBay want to and should do if theyโre seriously considering coming back.
But not everyone thumbs up on this. An insider revealed that Xiu.com has its own itches, might not be the most ideal platform for eBayโs grand returning scheme. Well, even though acquiring Xiu.com wasnโt the best thing that couldโve been done by eBay, it wouldnโt be the worst.
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