Taobao JV HiTao to Achieve Profitability in 2013

Sina Tech, 3/04/13

Sun Zhenkun, Managing Director of B2C e-commerce site HiTao, a JV between Hunan Satellite TV and Hangzhou-based C2C & B2C e-commerce site Taobao, has announced that the company will achieve profitability in 2013.

HiTao was established in 2010 through a RMB 100 mln investment by Hunan Satellite TV and Taobao. Taobao, which formerly held a 49% stake in the JV, increased its shareholdings to 51% for an undisclosed sum in 2012. Three of the company's five board members also hold positions at Taobao.

According to the company, HiTao's gross margin rate is 28% due to the large number of cosmetics product sales on the site.

Editor's Note: For more background on this topic, please see "Taobao, Hunan TV Produce E-Commerce TV Show" MD 4/19/10 issue.

Keywords: e-commerce Taobao Internet B2C Hunan Satellite TV JV HiTao profit

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