Hangzhou, China (4E) – Alibaba Group Holding Ltd. announced that its two wholly owned subsidiaries in the U.S. are looking into launching a new e-commerce site in the country as part of its recent steps to expand into the world’s second biggest economy.
The company, which is set for an initial public offering that made analysts value it at over $100bn, said on Tuesday that it will kick off its initial majority-owned American e-commerce operations.
Two subsidiaries of the company’s Alibaba.com business — Vendio and Auctiva — would soon launch the new site “11 Main” that offers products from select merchants in industries such as fashion and jewelry, according to an Alibaba spokeswoman on Tuesday.
In 2010, Alibaba acquired Vendio and Auctiva.
The latest move by Alibaba signals that the company is seeking other sources of growth. Alibaba’s websites account for 80 percent of China’s e-commerce market, and those sites saw their revenue rise by more than half to $1.78bn in the last quarter, but the pace of growth has slowed since 2013.
The decision by Alibaba is line with its longer-term goal of expanding into the U.S. The company now markets in the country through Aliexpress, an English language site that connects American businesses with Chinese wholesalers.