NewEgg China CEO Step Down, Second Time In A Year

NewEgg China CEO Gu Jianxin announced that he’ll step down as Chief Executive, about 10 months after he took the realm in last Nov. An anonymous NewEgg China executive said that “The company’s hesitation in new strategies triggered Gu’s resignation.”

NewEgg hasn’t found a replacement for Gu yet while its COO Chi Yongxin will be in charge of operation for the time being.

former NewEgg China CEO Gu Jianxin

This is the second time in less than a year that NewEgg in need of a new CEO. Founded in the States in 2001 and made its inroads into China in the same year, NewEgg China has long been criticized for its “inadequate effort to expansion and localization”.

Chinese ecommerce forefront is seeing mounting competition with 360buy’s aggressive expansion and other giant internet companies’ forays, including Shanda and Tencent.

Shanda invested US$ 309 million in ecommerce site iBuying.com with two other undisclosed participants, while Tencent is reportedly to release super B2C platform in the fourth quarter and to spend over US$ 77.7 million marketing expenditure to support quality online stores that operate on its ecommerce platform Paipai.com.

Joyo.com, the Chinese subsidiary of Amazon, also announced its open platform which let 3rd parties use its logistics infrastructure for a fee.

NewEgg has done some changes, like adding new categories ranging from foods, personal care products to clothes and maternity-child supplies.