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EBay is working hard to succeed in a very touch Chinese auction market

EBay recently announced plans to shut down its main auction web site in China while entering into a joint venture with Tom Online, an Internet company based in Beijing. The online auctioneer powerhouse will pay around $40 million to claim a 49 percent stake in Tom Online, according to those familiar with the negotiations. All revenue and profits will be split among the two companies according to their stakes in the venture.  

EBay has already spent hundreds of millions while trying to arrange itself in China. Although the Chinese market has seen continued growth for years, the company has had difficulties successfully cracking the market. EBay has been operating in China since March 2002. The company pulled out of the Japanese market in 2002 after not being able to compete the way it wanted against Yahoo Japan.

Analysts have said that the move is not a surprise and it is an unofficial admission that EBay has failed in China. EBay started out as the main player in the Chinese auction market in 2003 but lost its dominance as alternatives to EBay were launched. By 2005, EBay had a 43 percent share, while Taobao, Ebay's main rival at the time, had a 59 percent share of the auction market.

The joint venture web site will be launched in 2007.

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if you cant beat them, join them
By polaris2k4 on 12/20/2006 4:07:07 PM , Rating: 2
Interesting how highly successful US companies often fail in foreign markets. I guess a common exception to that right now are car manufacturers in China, which have been doing quite well ever since China opened their market to more companies.

But most foregign companies that do manage to get a foothold are ones that either buy out or partner with smaller local companies. Which makes sense, local companies know their own
markets best and its the quickest way for a foreign companies to gain market share. The Chinese have the growth that the Americans want, and the Americans have the money that the Chinese want. Its a win-win situation.

If you cant beat them, join them right.




RE: if you cant beat them, join them
By irev210 on 12/20/2006 4:42:59 PM , Rating: 3
You are kidding right?

China is not friendly to having foreign companies come in and buy up factories and chinese companies. Last year, less than 10% of mergers and aqs were approved by the chinese government.

The Chinese have a very controlled economy, centered around manufacturing. The US has a very service-oriented economy.

You say foreign, I say where? Do you think China is in any way similar to Germany? No.

China welcomed car companies like GM to gain manufacturing experience. Most operations are joint-ventures with other chinese owned names, which are connected to the chinese gov't.

Not to sound crazy, but they actually did a study on Students from China studing with Student visa's in the US. The research firm reported that as many as 80% were actually here in the US stealing technology for the chinese gov't.

Military documents show that most military tech. is stolen by china. Generals have been very straight foward when saying it takes china 2 years to develop a weapons system that should take 10 years.


Either way, they are doing what they can. The big question is, once you burn so many various companies in the world you could end up on your own again, just manufacturing parts w/ cheap labor.

As for right now, china is on fire, and will continue to be for the next few years, then who knows.


RE: if you cant beat them, join them
By isaacmacdonald on 12/20/2006 5:54:26 PM , Rating: 2
80% of students stealing technology?

I'm afraid I don't know what that means. My university is flooded with chinese grad students (largely because they're more educated in the hard sciences than most americans seem to be), and I wonder what it is -- other than their own research of course -- that they're capable of stealing.


RE: if you cant beat them, join them
By RobFDB on 12/20/2006 8:00:22 PM , Rating: 2
You're obviously missing the big picture. Clearly all of those students are highly trained spies, all working for the Chinese intelligence service. They're in the US to covertly infiltrate your most hi-tech and secret bases to steal classified documents. Failing that approach they try and get lucky with a 4-Star generals daughter/mother/brother/son/wife etc etc and turn them so they become agents.

I mean seriously, you obviously haven't seen one too many cold war era spy movies. Shame on you.


RE: if you cant beat them, join them
By afkrotch on 12/21/2006 12:04:33 AM , Rating: 2
I wouldn't say that all students are highly trained spies. I won't say that there aren't highly trained spies from China in the US.

I mean, the NSA has a policy that no Chinese person can work for them. I don't know about the other intelligence agencies.

Course, we all spy against each other. When isn't the US spying on China?


RE: if you cant beat them, join them
By RobFDB on 12/21/2006 5:46:24 AM , Rating: 2
You do realise that my whole post was a sarcastic jibe at the guy who said 80% of Chinese students are spying on the US right?


By polaris2k4 on 12/21/2006 5:04:21 AM , Rating: 2
Haha...er, what? You want to source those claims? Especially the "80% of all Chinese vista students are stealing technology" part. That actually kinda made me laugh.


Don't you mean tough?
By Jesse Taylor on 12/20/2006 6:37:56 PM , Rating: 3
quote:
EBay is working hard to succeed in a very touch Chinese auction market




RE: Don't you mean tough?
By RobFDB on 12/20/2006 8:01:48 PM , Rating: 2
I just assumed the Chinese had a different way of doing business. See copiedright's post to see what I mean ;)


Paypal Sux
By robharvil on 12/21/2006 2:43:48 AM , Rating: 2
It's not eBay that's the problem its Paypal. There needs to be more ways to pay than Paypal or straight CC. Paypal's buyer assurance program is a joke. I've bought several items that arrived DOA and all Paypal could say was "buyer beware" @##E!! That is BS!! Paypal is the problem, not eBay





RE: Paypal Sux
By iNGEN on 12/21/2006 2:34:29 PM , Rating: 2
I hate to be the one to break it to you, but Paypal is controlled by eBay. Visit your stockbroker's website and do some reading through their press releases. eBay purchased a controlling interest in Paypal a few years ago.


China DOC
By copiedright on 12/20/2006 5:45:08 PM , Rating: 3
China has one of the best Department of Commerce (DOC) in the world!

I know a man who needed to manufacture a small series of handsets for hospital TV's. He contacted the China's DOC, he flew over to china and as soon as he ticked the box for business and not pleasure. Everything changed!

He did not pay for a single meal. He had someone drive him around. He even was offered 'women' for free. And this was at the governments expense!

China understands the importance of creating jobs, and pulling in money from around the world, plus they have the economy and workforce to match it.




Am I missing something?
By jeffbui on 12/20/2006 4:02:02 PM , Rating: 2
Why are none of these other auction websites popular in the US? Do they even exist here? EBay has a stronghold on the market here and some competition would do it good. EBay's customer service is horrible and we really don't have another viable option. They can charge whatever they want with Paypal and auction fees as well.




"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard









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