A New Chinese E-Commerce Powerhouse?
When a newly established e-commerce company raises hundreds of millions of dollars in its short existence, Internet retailers should pay attention.
On Dec. 29, two Internet investment funds offered 1 billion yuan ($161 million) for a 5 percent stake in Wanda E-commerce, quadrupling the value of the 4 month-old business to 20 billion yuan ($3.22 billion).
For the unfamiliar, Dalian Wanda Group Co Ltd is China's largest commercial property company, operating luxury hotels, department stores and more. Wanda Group's e-commerce move is expected to rival the Alibaba Group, which leads Internet-based sales in China.
Both Wanda and Alibaba have a long road in front of them, however, when it comes to gaining the trust of American consumers. Alibaba not only has low brand recognition among U.S. shoppers, but it also faces Americans' concerns over long delivery windows, security and more.