Having reportedly failed to gain traction in the market, Alibaba on 23 June announced it is selling its US shopping subsidiary 11 Main an year after launching it.
The site will be sold to US firm OpenSky, Alibaba said in a statement. It took care not to put a value on the deal. It said it would retain a minority stake in the combined entity that would carry 50,000 brands.
When 11 Main was launched in June last year Alibaba’s chairperson of US investments Michael Zeisser said it “brings something unique to the US market”.
Alibaba has a dominant position in Chinese e-commerce, with its Tmall.com platform believed to command half the Chinese market for business-to-consumer transactions. Its Taobao platform holds more than 90 per cent of the consumer-to-consumer market.
But its overseas expansion has remained somewhat slow, though it has acquired more than nine percent stake in US online retailer Zulily in May.
“We wish to have 40% business in overseas market. So far our overseas business accounts for 2% ,” its founder and executive chairperson Jack Ma said in New York .
The company, based in Chinese city of Hangzhou, completed the world’s biggest IPO last September with a listing on the New York Stock Exchange that raked in $25 billion.
The IPO was priced at $68 and the shares rocketed to $120 in November. But since then they have been hammered by poor third-quarter results and a row with Chinese authorities.
Alibaba said it would replace its chief executive despite a 45% gain in revenue in the January-March quarter. Profits plunged by nearly half in the period.Having reportedly failed to g