Thursday, September 23, 2010

Baidu Lotte joint venture Formation of landed four domestic B2C

April 22 message, in the intense preparation for more than three months later, the closely watched joint venture Baidu Lotte landing in Tongzhou, Baidu Mr. Xuyang Ren, vice president of joint venture company with people who attend the admission ceremony, a village of Huang.

It also means following Taobao, Suning and other giant, the forces of another large influx of Internet B2C field, the field of four major domestic B2C model also has this shape.

Tongzhou settled in the joint venture model with B2B2C

Co-operation from the beginning to the floor, Baidu Lotte cooperation entered a substantive stage in less than three months.

January 27, Baidu announced Lotte Japan injected 50 million U.S. dollars joint venture company formed and will be available within a year e-commerce site. Of these, Lotte 51% of the shares owned a controlling stake in the joint venture, holds the remaining 49% stake in Baidu.

April 1, Lotte within the company announced the appointment of Akira Nakamura, a joint venture company as Baidu optimistic people, and at the same time as the president of Lotte China Post. Artesyn Technologies exclusively informed, Koichi Nakamura has come to China not long ago, he and Baidu executives were at the admission ceremony for the joint venture - this is Akira Nakamura, a first public appearance in China this weekend, Koichi Nakamura, also rushed to Shenzhen for a B2C Forum.

According to informed sources, Baidu will copy the Lotte Lotte Japan joint venture business model, using B2B2C model. Joint venture charges, there are three main methods: direct charge to the business settled and information services costs, advertising costs and provide value-added services.

Among them, the joint venture company to absorb the informal businesses to enter, to help SMEs to do e-commerce, and to provide information services to receive part of the costs; by merchants on the site location and in the search process to provide auction services in the way of access to advertising; other joint venture Companies can also pay for goods and logistics part of a gain.

It is reported that Japan's Lotte was founded in 1997, is the world's B2C "platform model" of the pioneer and leader, until now, in Japan, has more than 30,000 regular commercial brands and channels to engage in Lotte B2C e-commerce trading platform, now part of the proceeds has been advertising its total revenue accounted for half.

In fact, the joint Baidu is not the first time Japan's Lotte layout in the Chinese market. Back in June 2004, Lotte hoped that through the investment into China's Internet travel market Ctrip, but in holding Ctrip 3 years, Lotte selected a high exit.

Lotte in Japan for the joint, Baidu said looking forward. Mr. Xuyang Ren had said in March this year, B2C e-commerce strategy is the focus of the next Baidu. If all goes well, Baidu Lotte B2C website can be the fastest on the line this year in July.

Four patterns of domestic confrontation between B2C

The joint venture company Baidu Lotte floor also means that, following Taobao, Suning, Jingdong three B2C model, the domestic B2C market, finally forming the fourth largest model.

However, before landing in Lotte, the former model has their own account for three advantages: portability Taobao C2C fought by the mass users B2C, has launched Taobao Taobao Mall and Circuit City; Suning retail giant Tesco launched a high profile deployment of the network home shopping market power, occupy traditional advantages; Jingdong Mall received 150 million U.S. dollars while venture, is staking their claims across the country.

B2C market veteran, sent on behalf of the network president, Xing Kong Sports to Artesyn Technologies said that the current Taobao, Jingdong, Baidu joint venture with Suning these four models can be summarized into two categories, in essence, Baidu Lotte joint venture with Taobao belongs to a class , were playing in business platform and sellers play a role in between. Suning and Jingdong belong to another model, are purchasing their own office from the manufacturer, with its own logistics, warehousing and other systems.

Xing Kong education that Baidu Taobao joint venture with the only difference is that the latter may be more stringent on the sellers, location is more detailed. In his view, Baidu Lotte joint venture on a temporary floor had no effect on the domestic B2C market.

"The whole market has entered the Competition B2C power stage, a large structure will be formed, but in order to speed-based models and pure B2C model based on traditional channels to the final contest will be staged."

Xing Yu appears in the hole, B2C next pattern change will occur in these two years, the traditional channels will probably occupy 70% of the B2C market share, pure B2C business occupies the other 30% share.

Lei Xu Jingdong Mall vice president, said, B2C market, ushering in a new entrant to the sophist who are no effects, the B2C market is enormous and rapid advances. Baidu currently Lotte Jingdong on understanding the joint venture are not many still focus their efforts to improve their services, brand and size.

According to CNNIC statistics, in 2009 the scale of China's online shopping market reached 248.35 billion yuan trading, up 93.7%, expected size of 2013, net purchase transactions expected to exceed 1 trillion yuan.

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