Invite colleagues
Seems yet another company is being established to exploit the growing Chinese e-commerce sector. Today, I was interested to note a new joint venture established by Baidu and the Japanese e-commerce operator Rakuten (called "Le Ku Tian").
These are both Internet powerhouses in their own right and this combination may be the start of an interesting period in e-commerce or given the size of these companies and their respective aspirations may turn out to be more buzz than real sucsess. But an interesting combination neathertheless and certainly as digital marketers, we will have much to see from a Branding, positioning and execution (marketing) perspective.
In local press, the CEO of Rakuten.com.cn, Koichi Nakamura said that the reason for adopting "Le Ku Tian" is because its pronunciation is similar to Rakuten, and it is also a Chinese name representing happiness. He further explained that their service concept is to make online shopping a secure, convenient and happy pursuit. They hope consumers can enjoy the cool shopping experience on Rakuten.com.cn.
Both Baidu and Rakuten's executives said that the Rakuten.com.cn e-commerce website will not only further energize the Chinese e-commerce market, but will also provide better products and services to Chinese consumers to ensure they have fun while being separated from their cash via online shopping. Meanwhile, it will serve the Chinese small- and medium-sized enterprises and help them share the new opportunities brought by the booming e-commerce market.
In addition, Rakuten.com.cn will reportedly hold large-scale investment meetings in Chinese cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, Chengdu, and Qingdao soon.
On January 27, 2010, Baidu and Rakuten announced in the online media, plans to jointly invest USD50 million in the establishment of an e-commerce joint venture, with Rakuten owning 51% and Baidu owning 49% of the JV. The two parties will dispatch senior experts to form the management team of the company.
Additional Sources: China Tech News
Written on Friday, 11 June 2010 11:44 by Matt McDougall
