NetEase, best known as one of China’s largest online gaming companies through titles such as Overwatch, is making a bid to expand its e-commerce business with plans to source US$11 billion of new inventory from markets such as the U.S., Europe and Japan as well as South Korea and Australia.

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It’s e-commerce business, called Kaola has the largest market share in China’s cross-border e-commerce sector with about 24% market share in the first half of 2017, according to iiMedia Research, followed by Alibaba’s Tmall with 20% market share and Vipshop with 16% market share.

Netease is aiming to take advantage of Chinese consumers’ love of global consumer brands by sourcing products directly from overseas suppliers. The company has plans to open a new 300,000 square metre warehouse in the port city of Ningbo, to facilitate the handling of international products.

As part of its growth strategy, it is focused on building an e-commerce business alongside its fledging online gaming business, which currently makes up about 80% of the company’s revenues.


About Kevin Hua

Kevin Hua is a Co-Founder of AtlasTrend, an investment platform that makes it easy for anyone to learn and invest in trends impacting our world. Kevin has over 20 years experience in financial markets including as Senior Portfolio Manager at Atrium Investment Management and Stark Investments.