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Alibaba backs down in the US market
The Chinese e-commerce company is selling its first U.S.-based e-commerce site, 11 Main, because the site hasn’t gained traction here and faces too much competition, reports state.
New York--E-commerce company Alibaba is selling its first U.S.-based venture, 11 Main, due to the site failing to gain traction with consumers and businesses and competition from other online marketplaces, various news outlets reported this week.
11 Main, an e-commerce site where shoppers could purchase jewelry, home goods, toys, beauty products and an array of other products, was presented as an e-tailer that worked with smaller boutiques to help those businesses sell their products online.
It launched only a year ago.
Alibaba Group Holding Ltd. is selling the site to New York-based OpenSky, a social, online marketplace, and will take a 37.6 percent stake in that company in exchange, The Wall Street Journal reports.
A Hangzhou, China-based public company headed by Chairman Jack Ma, Alibaba is an online sales giant overseas but has run into trouble in the United States as of late for allegedly selling counterfeit luxury goods knowingly.
Reuters reported in mid-May that brands owned by Paris-based luxury goods conglomerate Kering SA, including Gucci and Yves Saint Laurent, filed suit in federal court in Manhattan accusing Alibaba of peddling counterfeit products bearing their brand trademarks.
Kering filed a similar suit against Alibaba last year but it was withdrawn after the two companies opted to try to work together on a resolution.
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