Update On :17 May 2016
eBay, an American ecommerce company is looking forward to expand its fashion and lifestyle categories, acquireÂ online fashion retailers in India and to take on Amazon and Flipkart. Two acquisition attempts of eBay have failed - Fashionara and Rocket Internet-backed Jabong. There were talks going on for a possible sale of JabongÂ to eBay a few months ago. However, they failed as eBay asked Jabong to completely change to a marketplace model that eBay operates. After this there has not been any such talks.
Gurgaon-based online fashion and lifestyle portal Jabong, owned by Global Fashion Group (GFG) used to run a largely inventory-led model, which means the company bought stock before selling. However, lately it moved to a marketplace model to cut costs and expand faster. Apart fromÂ the Indian unit of San Jose JabongÂ , the California-based eBay was in talks with other online fashion and lifestyle retailers such as Fashionara for acquisition. Even after nothing worked outÂ eBayÂ is still in the market for acquiring fashion e-tailers.
eBayÂ India declined to comment on its talks with Jabong and Fashionara. Company spokesperson said that they don't speculate on acquisitions. eBay India is focused on providing a wider selection and choice of products to our 5.2 million buyers. He said in a email that they remain committed to growing our lifestyle category, which includes fashion, home furniture and furnishing, baby products. Fashion and lifestyle contribute close to 40% of eBay sales in India, ranking second only to electronics.
eBay entered India in 2004 by acquiring auction site Bazee and was overtaken by late entrants Amazon, Flipkart andÂ SnapdealÂ . According to documents available with the Registrar of Companies, eBay posted revenue of Rs132.10 crore in fiscal 2015 whileÂ FlipkartÂ Internet, the flagship marketplace firm of the Bengaluru-based company, posted revenue of Rs 772.49 crore in the same period.
News Source From : http://timesofindia.indiatimes.com/tech/tech-news/eBay-plans-new-strategy-to-take-on-Amazon-Flipkart/articleshow/52288190.cms