C2C Sites in China Are in Fierce Competition
"The result shows (2006 China C2C Online Shopping Survey Report) that the C2C sites in China are in fierce competition, with Taobao.com taking up 67.3% of market share, eBay Eachnet 29.1%, Paipai 2.2% and 1pai 1.4%."
From Dow Jones:
"Insiders at eBay Inc.'s (EBAY) China unit haven't denied that a general feeling of malaise permeates the company's China operations, withering under the constant fire of Alibaba.com Corp.'s Taobao consumer-auctions site.
Even as eBay struggles to realize any advantage from the integration of the former Eachnet group, Alibaba Chief Executive Jack Ma, typically outspoken, last week told Marketwatch's Bambi Francisco that "the game is over" between his company and primary competitor eBay."
"Hong Kong-listed Tencent Holdings Ltd. would make a nice partner for eBay. Also a rising star in China's e-commerce sector, although it only entered the fray last September under the flag of its paipai.com consumer e-commerce property, Tencent's user base and product offerings would pose an effective counterpoint to those of eBay."