SHANGHAI - Alibaba Group Holding Ltd will buy e-commerce business Kaola from Chinese gaming company NetEase Inc for $2 billion , adding a platform that specialises in supplying luxury goods from abroad to Chinese consumers.
While Alibaba's Tmall already allows overseas brands to launch and manage virtual storefronts on its platform, Kaola offers a more curated collection to wealthy clients, primarily purchasing goods directly from suppliers to resell to consumers."With Kaola, we will further elevate import service and experience for Chinese consumers through synergies across the Alibaba ecosystem," Alibaba CEO Daniel Zhang said.
Kaola, launched by NetEase in 2015, aggressively targets shoppers in China, by offering products from brands such as Gucci, Shiseido and Burberry. By offering a relatively narrow selection of popular items, it can boost bulk purchases from suppliers and offer low prices.
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