Continuing its push for more market share in Asia, eBay announced plans to expand its Gmarket online marketplace in Japan and Singapore through a joint venture with Young Bae Ku, Gmarket's founder.
Each party is putting $10 million toward the joint venture, with eBay contributing assets from Gmarket's existing businesses in Japan and Singapore. Under the agreement, eBay will have a 49 percent stake, while Ku—who will serve as the joint venture company's CEO—will own 51 percent.
eBay acquired Gmarket less than a year ago to solidify its dominance in the South Korean e-commerce market. The company is currently integrating Gmarket with Internet Auction Company (IAC), a South Korean marketplace it acquired in 2001.
eBay has long viewed Asia as region ripe for e-commerce growth. According to eBay, from 2009 to 2012, Japan's e-commerce market is expected to grow 30 percent, while Singapore's is forecast to grow 13 percent. The joint venture with Ku could provide a foundation for long-term expansion of Gmarket into other Asian markets as well, the company said.
Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.
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