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.