Tencent, the company that runs China’s most popular online chat service, QQ, has made a move into the already crowded C2C market in China. Paipai.com is Tencent’s now formally opened site, and includes online stores, a games area, and virtual products. Tencent plans to eventually leverage QQ with the new trading platform. According to a recent report from China-based Analysys International, Chinese online auctions brought in about US $1.7 billion in value in 2005, an increase of 235% from 2004. The sites’ market share breaks down as follows:
Taobao, part of the web portal Alibaba, accounted for
57.74% of the total transaction value in 2005, followed by eBay with
31.46%, 1Pai, part of Yahoo! China, with 5.75% and PaiPai with 3.76%.