Yahoo and eBay are targeting their online auction growth efforts on a likely fast growing Internet market, China.
Yahoo announced on Tuesday it was on track to launch online auctions in China by mid-2004. “We will introduce that service in the next few months to consumers in China,” company founder Jerry Yang told Rueters in Beijing. According to Yahoo, the auctions will be run via a partnership venture Yahoo formed in January with Chinese Web site operator Sina.com.
As Yahoo is making a big push for its rival online auctioning market, eBay also has targeted China on as its second biggest investment market.
eBay operates in China via a company called EachNet and plans to build its auctioning service in China over the next 3 to 5 years.
“Over the next 10 to 15 years China is going to be an explosive area,” Whitman told the Rueters news service in Hong Kong. “We want to set the table for a very strong business over the long haul.”
According to Rueters,
Whitman said China would be eBay’s second-largest investment market, after the United States, but declined to specify how much the company planned to put into EachNet before the site turned a profit.
EachNet, which is being rebranded to add eBay’s name, competes in China with home-grown players such as Alibaba.com Corp.
Yahoo began a push into China last year, buying Chinese software firm 3721 Network Software Co for $120 million. 3721’s focus is on keyword search advertising and search engines, which gives Yahoo a jump on competitors such as Overture in the Chinese market.