360buy is one of the biggest B2Conline shopping platform in China’s B2Cmarket and also one of the most popular and influential e-commerce website in China. At present 360buy has 15 million registered users and 1200 suppliers around China, selling over 3000 thousand kinds of quality products covering altogether 11 ranges, namely, home appliances, digital devices, computers, general merchandise, clothing, books and food, etc. with over 1200 thousands deal over 35 million PV daily, 360buy has taken up 35.6% of China’s online retail sale market and has been the top of the industry in ten consecutive quarters. On May 17th, 2011, Liu Qiangdong, CEO of 360buy announced that Jiongdong would terminate its cooperation with Alipay.
360buy Founder: Liu QiangDong , Resume
360buy official website: http://www.360buy.com
Private or public traded:Private
Market capitalization(Market Cap):n/a
Address: 1 fl. No.2,Yinfeng building, Suzhou street, Haidian Zone, Beijing City, China
Contact information: (86)(010)62615311-001
User number: 15 million
User growth rate:50%
Revenue: 10.2 billion RMB
Revenue growth rate: 250%
Venture Captial(VC investors of Tencent): Digital Sky Technologie, VC, Capital Today Group, Bull Capital.
360buy financial report: n/a
Relevant news stories
With a $ 500 Million C-Round Financing, 360buy Can Only Support Itself Through Another One Year and a Half
Some Investment banking experts has made a calculation for 360buy: In 2010 360buy claimed to have a total sale of 10 billion yuan. In fact, this figure was somehow cooked up because the actual sale was only 8.7 billion yuan, which was unaudited and even did not include the loss from rejected and damaged goods. Meanwhile, 360buy’s average gross profit rate was 4.5%, but its deficit rate was as high as 9%. Based on these calculations, last year 360buy was approximately 780 million yuan.
The situation in 2011 could hardly show any sign of improvement. Based on the sales last year, in 2011 360buy’s sales revenue exclusive of tax will reach 21.4 billion yuan, with gross profit margin at 7%, and net profit rate at -5.7%. Based on this estimate, in 2011 360buy’s total losses will reach 1.47 billion yuan, while the loss in 2012 will increase to 2.42 billion yuan.
Based on the above estimates, investment bankers expect that 360buy’s C round of financing ( 500 million dollars) can only support it through one year and a half or so.
Gome Develops its E-Commerce to Attack 360buy from Both Sides
Over the past five years, the size of the domestic online shopping has dramatically increased by 22 folds. In 2010 it reached more than 4500 billion yuan, of which the sales of home appliances was over 40 billion yuan, account for 10.35%. While the total sales revenue of Gome was 50.9 billion yuan
As online shopping keeps on snowballing, last year, the sales revenue of 360buy was as high as 10.2 billion yuan. And the daily revenue in the Home Appliances Center of Taobao Mall is about 20 million yuan, equivalent to the sales of 125 stores under the brand of Gome. By contrast, before the acquisition of Kuba, in the first 10 months of 2010, Gome online store’s sales were only 5 billion yuan or so. Therefore, it is clear that the Gome hopes to grab a larger market share by employing the “double-brand strategy” to flank 360buy.
Trapped in a Vicious Financing Circle, 360Buy’s Profit Model Is Being Challenged
Having finished its third round of financing of 1.5 billion yuan, which is regarded as “the largest single financing on the internet market’, 360buy faced with another “ force-out”.
Recently, Gong Dingyu, COO of Leyou, China’s largest chain enterprise of mother and children product, had directed his anger to 360buy on a profession forum. He claimed that 360Buy was conducting an unfair competition through selling products at a price below cost. At the same time, he applied the other factories and suppliers of mother and children’s products to resist 360Buy. This is the second time for 360Buy to be “bombard” by the previous oligarch of the industry ever since it fought a “price war” in book industry with DangDang.
With capital and low cost advantages, 360Buy is striving to expand its sphere of influence. And along with its rapid expansion, comes worries and voice of doubt: When can 360buy make a profit?
 According to the news report at http://www.bianews.com/news/57/n-345257.html