eBay Learns The Hard Way with China Market
When eBay bought EachNet, China’s then-leading online auctioneer, in July 2003, it seemed the world’s most-promising e-commerce opportunity would only be eBay’s to lose.
But in three years, EachNet’s market share fell by more than half, according to iResearch, a firm that studies market trends, as shoppers turned to a competitor more in tune with Chinese users.
Last week eBay announced it was shutting down EachNet and launching a new Chinese marketplace in partnership with Tom Online, a Beijing-based Internet company that will hold the majority stake in the joint venture.
It was the latest in a string of dramatic reversals for some of the world’s most powerful Internet companies as they face strong local competitors in the battle for China’s highly desirable online market. Already second in Internet use to the United States, China counts more than 123 million Web surfers. And that number represents less than 10 percent of its total population.
MercuryNews.com | 12/24/2006 | EBay’s China lesson: Go local
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