As reported by China Tech News, Chinese Internet portal and online game services provider NetEase.com, Inc. ((ADR) NASDAQ: NTES) announced the closing of L.163.com, its luxury goods Internet shopping platform, after only one year of operations.
On December 26 the shopping website posted a message on its homepage (in Chinese) that it would cease to operate as of January 1, 2012 but that the company would honor product returns through January 15.
L.163.com was introduced in January 2011 as a discount shopping site for the purchase of watches, bags, leather products, apparel, shoes and jewelry from the world’s top luxury brands. With Netease as its corporate parent the website could make credible guarantees such as: 1) 100% product authenticity, 2) nationwide free mailing service, and 7-day unconditional return service.
Although the company attributed the closure to “business restructuring” it is clear that it had simply greatly underperformed expectations. Prior to this short-lived venture Netease had launched other new non-core businesses with similar results. It had previously tried to enter the online air travel booking sector, but shuttered that business after only 80 days.
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