Japan's Rakuten to shut China online shopping mall

Apr 20, 2012
Japan's Rakuten to shut China online shoping mall
Japan's top online retailer Rakuten said Friday that it was ending a shopping venture with Chinese Internet giant Baidu, blaming "intensified competition" in the growing e-commerce sector. The pair rolled out a virtual shopping mall called Lekutian in October 2010 for the Chinese market but it has struggled and will be closed by the end of May, the Japanese firm said.

Japan's top online retailer Rakuten said Friday that it was ending a shopping venture with Chinese Internet giant Baidu, blaming "intensified competition" in the growing e-commerce sector.

The pair rolled out a virtual shopping mall called Lekutian in October 2010 for the but it has struggled and will be closed by the end of May, the Japanese firm said.

China has the world's largest online population with more than half a billion users.

"In the face of intensified competition in the Chinese e-commerce industry, Lekutian did not perform in line with our expectations," Rakuten said in a statement.

"Following careful deliberation, both Rakuten and determined that closing Lekutian was in the best interest of all stakeholders," it added.

When Lekutian was announced, the pair said they planned to invest about $50.0 million over three years in the project, part of Rakuten's plan to expand its global operations.

On Friday, the Japanese firm said it expected the move to have little impact on its earnings, and said it would continue with other businesses in China, including an online travel agency.

Explore further: Google search mobile switch a revolution for some

Related Stories

Japan's Rakuten e-retailer books larger sales

Nov 09, 2010

Japan's top online Rakuten on Tuesday reported an increase in net sales for the nine months to September as it continues a global expansion of its e-commerce business.

Japan's Rakuten to buy Canada's Kobo e-reader firm

Nov 09, 2011

Japan's top online retailer Rakuten on Wednesday said it had agreed to pay $315 million in cash for Kobo Inc., the maker of a popular e-reader in Canada whose majority shareholder is book retailer Indigo.

Chinese retail site, Yahoo! Japan unveil deal

May 10, 2010

China's largest retail website Taobao and Yahoo! Japan on Monday announced a new partnership aimed at increasing online shopping options for consumers in the world's number two and three economies.

China, Japan launch Asian eBay rival

Jun 01, 2010

China's largest retail website Taobao and Yahoo! Japan launched a joint service Tuesday in a deal expected to create the world's biggest online marketplace by harnessing Asia's surging ranks of e-consumers.

Recommended for you

'Map spam' puts Google in awkward place

7 hours ago

Google was re-evaluating its user-edited online map system Friday after the latest embarrassing incident—an image of an Android mascot urinating on an Apple logo.

Google search mobile switch a revolution for some

23 hours ago

Google's latest Internet revolution this week saw the web giant modify its search algorithm to favour mobile-friendly sites, in a bid to upstage Apple that US media branded a "mobilegeddon".

Cheap content, growing reach make Snapchat a fast-rising star

Apr 22, 2015

Thousands of revelers descended on the Coachella music festival this month to rock out to their favorite bands and party day and night. But a far bigger audience from around the world - at least 40 million - joined in remotely ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.