Get the free version of Marbridge Daily delivered to your inbox

Click here to subscribe

Liba to Transform into Construction Material B2C

Netease Tech, 5/31/10

Chinese home-decoration and wedding e-commerce site Liba has begun its move into sales of construction materials, transforming itself from a platform for B2C e-commerce to a B2C vendor. Liba VP Xu Xiangtao said that the company has already invested more than RMB 20 mln in its transition.

Starting in the second half of last year, Liba's construction materials channel began to move from offering a sales platform to engaging in sales itself. Suppliers now need only be responsible for producing products in the amounts dictated by Liba; Liba will handle all other stages of the supply chain, including product samples for users, on-site testing, design, delivery, and installation.

Liba's construction materials channel has now grown from its former 80 or 90 employees to 120 or 130 employees responsible for drafting materials standards, brand selections, and quality control, among other tasks. Liba is outsourcing its storage and logistics services.

Xu said that after the transition, Liba's profits will "at least double." The company will also expand its services into several different cities. As of May, Liba began offering construction material services in nine cities: Shanghai, Nanjing, Suzhou, Wuxi, Hangzhou, Ningbo, Wenzhou, Hefei, and Beijing.

In 2009 Liba processed RMB 3 bln worth of transactions, and had more than 3 mln registered users.

Keywords: forecast Xu Xiangtao e-commerce Liba Internet B2C registered users profit HR

Feedback

Please note, all fields are required.
None of your personal information will be shared with third parties.

SendingSending

Disclaimer

The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

Marbridge Daily Premium

Interested in gaining full access to all newsletter articles and the Marbridge Daily archive? To learn more about premium subscription options, including pricing, please:

Click here

Marbridge Consulting RSS Feed

Marbridge Reports