/>
X
Business

Report: 360Buy to go on acquisition spree

Second-largest e-commerce operator in China plans to buy more companies to build out capabilities and stoke rivalry with leading operator Alibaba.
Written by Kevin Kwang, Contributor on

China's e-commerce market is expected to become more competitive after 360Buy's chief executive reveals the company plans to go on an acquisitions spree in the latter half of 2012, amid speculation it will go public as early as September, according to the Financial Times.

According to a Financial Times report Tuesday, the news agency cited Richard Liu as saying the company was planning to "do a lot of acquisitions" in the remaining of the year. "The Chinese e-commerce sector has already entered its shakeout phase, and that phase will be over by the end of next year. We will take advantage of it," Liu said.

The Chinese e-commerce provider is currently the second-largest online retailer by transaction value behind Alibaba's Taobao and Tmall, and operates the online retail site Jingdong Mall. The article, citing research from iResearch, noted that the e-commerce site recorded transaction volumes of 30 billion yuan (US$4.7 billion) in 2011--up by 200 percent from 2010 and more than three times the size of Amazon China.

Liu also cooled talks the company would conduct an initial public offering (IPO) in the United States any time soon, saying: "We have enough cash until 2015." The company earlier hired Bank of America Merrill Lynch, Goldman Sachs, JPMorgan and UBS to advise on future busines plans, sparking rumors of an impending IPO as early as September, the report noted.

Logistics key revenue driver
Financial Times also reported 360Buy was investing 10 billion yuan (US$1.6 billion) into a nationwide logistics and delivery service over the next three years. While the initiative was greenlighted to deal with capacity bottlenecks and service quality shortcomings in China's express delivery sector, it now expects logistics to become a new revenue driver. 

"By 2015, I expect the external order volume to exceed our internal orders handled by our delivery service," Liu told the news agency.

The Chinese online commerce provider had been testing ability to handle orders from other Chinese e-commerce companies since February and will officially start the service in August. It also was negotiating with Dell on handling its deliveries in China, the report stated.

E-commerce had been earmarked by the country's government as a growth sector and, in March this year, the Ministry of Industry and Information Technology laid out plans to drive the value of online shopping to 18 trillion yuan (US$2.86 trillion) by 2015.

Editorial standards

Related

Southwest, United, and American Airlines have a new enemy -- the internet's ugliest site
Airplane wing in flight

Southwest, United, and American Airlines have a new enemy -- the internet's ugliest site

You can use an AI Time Machine to see what you'd look like in different eras throughout history
Photo renderings of a woman throughout different decades using AI Time Machine

You can use an AI Time Machine to see what you'd look like in different eras throughout history

Garmin's new Index BPM is the blood pressure monitor that I've been waiting for
garmin-index-bpm-lifestyle

Garmin's new Index BPM is the blood pressure monitor that I've been waiting for