Tencent Tech, 8/30/11
Zhang Xuejun, CEO of Yougou.com, Chinese online fashion company Belle's B2C footwear joint venture with Baidu (Nasdaq: BIDU), announced at a press conference in Beijing today that Belle has invested USD 200 mln in his company. Zhang said that he hopes to see Yougou grow to account for between 5-10% of Belle's total online revenue within the next 3-5 years.
Editor's Note: An anonymous source at Baidu has told Marbridge Consulting that although Baidu did enter initial talks regarding investment in Yougou, the company never either invested in or established a joint venture with Belle. Zhang told Netease Tech that USD 20-30 mln of Belle's funds have already been deposited in Yougou's accounts, and Yougou plans to seek additional investment from venture capital and strategic investors. Zhang said Yougou is currently in touch with a number of large internet firms such as Baidu, but has not yet concluded any definitive agreements. Regarding warehousing and logistics, Zhang said that initially Yougou will rely heavily on third-party providers for delivery but plans to build four warehouses in Beijing, Shanghai, Guangzhou, and Chengdu with combined floor space of 6,000 to 10,000 square meters. For more information on this topic, please see "Rumor: Yougou Obtains RMB 3 Bln in Funding," MD 7/19/11 issue.