Newegg China COO Chi Yongxin, who took over Newegg China after the site’s former CEO stepped down in this September revealed lately during an interview that its parent company Newegg U.S. is investing heavily into China market with an aim to make a profit in a year or two.
Except for funding, according to Chi, Newegg China would also introduce the open platform and technology of Newegg U.S. into China market. “We’ll launch our own open platform soon. Chinese suppliers could totally export their products through us when needed”, said Chi. He also said that Newegg favors the long-term prospects for China market, its China site will focus on 3C products with an eye on middle and high-end markets.
When asked about the price war among Chinese ecommerce sites, Chi said that their ‘craziness’ is a big challenge for Newegg China and they did lure away some of Newegg China’s customers with lower price. However, he believed that it’s unhealthy for ecommerce companies to loss money since Newegg U.S. made money since the very beginning.
He predicted that the price war wouldn’t last long before the market regains a rational mind and that’s when Newegg China is ready to shine.
As we mentioned before, the site has long been criticized for its “inadequate effort to expansion and localization” while Chi explained that Newegg China is just walking at a steady pace without being too aggressive.