China's largest online retailers, including Wal-Mart Stores-backed Yihaodian, expecting sales to as much as triple next year
October 31, 2011
– China’s major online retailers are seeking large amounts of warehouse space in anticipation of sales that might as much as triple in 2012, Bloomberg reported Oct. 31.
“Any warehouse bigger than 20,000 square meters will be leased the second it’s out on the market," said Ji Wenhong, CEO of luxury goods seller xiu.com.
Companies expecting large surges in sales include Wal-Mart Stores Inc.'s-backed Yihaodian. 360buy.com, China’s second- largest e-retailer by sales, expects to invest as much as 6 billion yuan (US$943 million) to build seven distribution centers amid an expected tripling of sales to 30 billion yuan.
Yihaodian sees its revenue growing to 7.5 billion yuan for 2012 from at least 2.5 billion yuan in 2011. The company said lack of warehouse space has prevented it from growing another 20%.
The primary source of this article is Bloomberg, New York, New York, on Oct. 31, 2011.