SOFT DATA
Kaola, Launched by NetEase in 2015, is one of the market leaders in the CBEC sector. According to domestic consulting agency iiMedia, Kaola ranked first in the CBEC import market in terms of transaction value with 27.7% market share in 1H19, followed by Tmall Global with 25.1% and JD Worldwide with 13.3%. Different from Tmall Global which operates like a merketplace, Kaola focuses on both marketplace and self-operated model - sourcing goods directly from suppliers to resell to consumers. It imported more than 9,000 brands from 80 countries in 2018, ranging from wellknown brands to niche brands and lesser known factory brands.
Kaola has been keen to expand its offline presence over recent years. It set up two offline stores, one flagship store and one "global factory store" in 2018 and 2019. Kaola has also been investing proactively in its own distribution centers. It is reported that currently, Kaola has set up a warehousing network covering 15 CBEC pilot zones and a majority of pilot cities with a total area of more than 1 million sqm of bonded warehouse resources.
Alibaba announced fully aquire Kaola from NetEase in Sep 2019 for about US$2 billion. The acquisition will create a business that will far exceed rivals and lead to market consolidation in the CBEC import market.
