On February 12th, Wish’s parent company, ContextLogic Inc., has just revealed plans to sell the Wish e-commerce platform to Qoo10.
Qoo10 is an e-commerce platform headquartered in Singapore, with localised online marketplaces across Asia.
Wish has announced that once Qoo10 completes the acquisition, it will officially become part of Qoo10’s business series. This integrated platform is expected to bring many new cross-border e-commerce opportunities for Wish merchants. The Wish brand and platform that sellers are accustomed to will continue to operate as usual.
The completion of the acquisition is anticipated in the second quarter of 2024, subject to certain necessary conditions. Until then, seller terms of service and Wish contact details will remain unchanged. Following the completion of the transaction, a smooth transition for all merchants is expected.
According to certain necessary transaction conditions, the deal’s completion is expected in the second quarter of 2024. Until then, seller terms of service and Wish contact details will remain unchanged. Following the completion of the transaction, a smooth transition is anticipated for all merchants.
Qoo10, similar to Wish, is a comprehensive platform covering various categories, including fashion, home goods, electronics, beauty, and more. Based in Singapore, Qoo10 operates as an e-commerce platform centred in Asia with a global market outreach.
Qoo10 operates in six sites, namely Singapore, Indonesia, Malaysia, Japan, India, and South Korea, where it has a strong presence. EBay works on its Japanese site, as Qoo10 does not hold the operational rights there.
Although Qoo10 claims to be a “global e-commerce platform,” its influence is predominantly concentrated in Asia. Its services are currently provided in 24 countries, and some platforms have yet to adopt the Qoo10 name.
In pursuit of global expansion, Qoo10 has initiated a “Big Buy” strategy to achieve faster global growth. In the case of the Korean market, from the end of 2022, Qoo10 began acquiring local e-commerce platforms in South Korea, including Tmon, interpark, and Wemakeprice.
These three e-commerce platforms share a common characteristic—they are first-generation e-commerce companies and have experienced a decline in market share. interpark was launched in 1995, and Tmon and Wemakeprice in May and October 2010, respectively. In recent years, the market share of these platforms has consistently decreased. In 2020, Tmon held a market share of 4.3% in the South Korean e-commerce market, Wemakeprice declined to 3.1%, and interpark is speculated to be below 1%.
The three companies acquired by Qoo10 had lost their momentum of growth. Instead of launching new platforms and building brand recognition from scratch, directly developing platforms with existing market visibility accelerates their development.
The logic behind acquiring Wish follows a similar pattern. Despite Wish’s sluggish growth, it was once a popular shopping app in Europe and the United States, with significant brand recognition. Through the acquisition of Wish, Qoo10 leverages its foundation for a smoother expansion into the American market.