Alibaba Selling 11 Main in US Online Market
Alibaba, the Chinese e-commerce giant group has announced it will offload its US shopping subsidiary 11 Main. On Tuesday, Alibaba selling 11 Main, an online marketplace that started only a year ago, to OpenSky, an online-marketplace operator based in New York. In exchange, Alibaba is taking a 37.6% stake in OpenSky.
Alibaba started 11 Main last year based in California, envisioning a shop-window for small-time US merchants and brands as Alibaba sought to lessen its dependence on its home market. The website wasn’t a top priority for the company, which is focused for now on helping US retailers sell to China.
According to Telegraph UK, Alibaba will also sell three support and logistic subsidiaries for 11 Main – Auctiva, Vendio and SingleFeed – to OpenSky.
“OpenSky and 11 Main will be joining forces, and we believe together the combined business will be a strong and healthy independent company in which Alibaba will continue to have a significant equity stake,” Alibaba said.
Alibaba selling 11 main in order to keeps focus on home turf. Alibaba said that the company’s international strategy would focus primarily on helping overseas merchants and brands sell their goods to Chinese consumers, rather than expanding electronic-commerce services that compete head-on with the likes of Amazon in Western.
Alibaba, which went public for $25 billion initial public offering of stock on last September 2014 ( more than Facebook and Coca-Cola), might pursue electronic-commerce opportunities in the U.S. in the long run, but for the time being, analysts and investors are paying more attention to Alibaba’s efforts to solidify its strong position in the Chinese market. Alibaba holds roughly 80% of China’s online shopping market.
Apart from 11 Main, Alibaba has increased its presence in the U.S. market as an investor. In March, Alibaba invested $200 million in Snapchat Inc.