HANGZHOU, China, June 29, 2010 – Taobao, a subsidiary of Alibaba Group, and Wasu Media Internet Limited, a subsidiary of Wasu Digital Television Media Group, have jointly launched today a digital products platform and interactive digital television shopping to meet the growing needs of Chinese consumers for convenient and high quality shopping experiences. Taohua.com (www.taohua.com) will be China’s first comprehensive digital products platform offering single-stop sharing and purchase of video, e-books, music and other digital entertainment and educational products. For the first time in China, consumers will be able to shop from home on the Wasu Television Taobao Mall via interactive digital television shopping technology, which allows selection of goods and services using their TV.
Taohua.com and Wasu Television Taobao Mall will be operated by a strategic joint-venture formed by Taobao and Wasu Media. The joint-venture, named Wasu Taobao Digital Technology Limited, will bring together the two companies’ competitive advantages in online retail and digital media. This joint venture has been registered with capitalization of RMB 100 million.
“The powerful alliance between Taobao and Wasu will bring together resources in platform, content and users to give birth to an innovative new e-commerce and entertainment platform following the marriage of digital television and Internet,” said Fang Jiansheng, chairman of Wasu Digital Television Media Group. “Wasu Television Taobao Mall will be a model of innovation in being first in the world to combine e-commerce with the latest digital television technology to allow a small box to fulfill the online shopping dreams of hundreds of millions of people in the television audiences.”
“This joint-venture between Taobao and Wasu is an example of how businesses can cooperate using e-commerce in the spirit of openness, transparency, sharing and responsibility,” said Jonathan Luk, president and CEO of Taobao. “Taohua.com will be China’s first platform to consolidate digital materials for sharing and purchase, creating an environment that allows a wide range of small businesses to conveniently reach the vast consumer population on Taobao. Wasu Media is the ideal partner to help us offer better services and greater product selection to Taobao users as well as reach a wider and deeper consumer population through digital television.”
Taohua.com will offer free and premium fee-based content that includes video, audio, e-books, educational materials and interactive entertainment. It is expected to offer a selection of 4,000 motion pictures and 20,000 popular television show episodes at launch. The platform will gradually introduce e-books, music and other digital products. Content providers for Taohua.com include Joy.com and Wasu. In the agreement with content providers, Taohua.com will have responsibility for distributing material provided by Wasu, Joy.com and others.
Wasu Television Taobao Mall will initially have 12 main product categories including household goods; consumer electronics and apparel. Hundreds of Taobao merchants have already signed up and more than 3,000 Taobao products are available for purchase at the click of a remote control.
Launched in 2003, Taobao (www.taobao.com) is the largest Internet retail website in China. It provides the most comprehensive product offering and serves more than 190 million registered users as of April 28, 2010. Transaction volume on Taobao (gross merchandise volume or GMV) exceeded RMB200 billion (US$29 billion) in 2009. According to government statistics, online retail equaled approximately 1.98 percent of China's total retail trade in 2009. Taobao is the primary online shopping destination for the largest online population in the world.*
Taobao is wholly owned by Alibaba Group.
* According to China Internet Network Information Center (CNNIC), China had 384 million Internet users as of December 31, 2009.
About Alibaba Group
Alibaba Group is a global e-commerce leader and the largest e-commerce company in China. Since it was founded in 1999, Alibaba Group has grown to include the following core businesses: Alibaba.com (HKSE: 1688; 1688.HK), Alibaba Group's flagship company and the world's leading B2B e-commerce company; Taobao, China's largest Internet retail Web site and a one-stop platform for shopping, socializing and information sharing; Alipay, China's leading third-party online payment service; Alibaba Cloud Computing, a developer of advanced data-centric cloud computing services; and China Yahoo!, one of China's leading Internet portals.
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