Tencent's 51buy.com restructures; aims for US$2.4B sales

Chinese e-commerce site 51buy.com, which is owned by Tencent, is restructuring to further focus on products and logistics and aims to reach a target of 15 billion to 20 billion yuan (US$2.4 billion to US$3.2 billion) in sales in 2013.

A Tencent Tech report Monday cited an internal e-mail from 51buy.com CEO Bu Guangqi announcing the restructuring. To reach its sales target of 15 billion to 20 billion in 2013, Bu said the company will continue its fast delivery and low price strategies while expanding its product line, improving its service, and introducing quality products listing.

With the restructuring, 51buy.com will set up an e-commerce operations department which will focus on procurement and operations. It will also set up a hub for logistics to support a high-quality but low-cost delivery network. The company will also set up a business development department which will focus on long-term growth and incubator for new business, the CEO said.

As 51buy.com plans to expand to more regions in China, it will set up a committee to focus on these developing markets in the country. Employees working on developing markets in China will report directly to the committee so they can make faster decisions.

According to figures from the country's Minstry of Commerce, China's e-commerce market generated 5.88 trillion yuan (US$928 million) in sales in 2011 and the Ministry of Industry and IT had laid out plans to hit 18 trillion yuan (US$2.86 trillion) in e-commerce sales by 2015.