TOKYO -- Yahoo Japan will team with e-commerce giant Alibaba to expand into the Chinese market, where rivals have tried and failed.
Noting the popularity of Japanese products in China, Alibaba Chief Executive Officer Daniel Zhang said the partnership will enable small businesses in Japan to market their offerings to Chinese consumers.
Yahoo Japan, the third-largest player in its home market, will help 100 compatriot companies sell cosmetics, baby products and other household items on Alibaba's Tmall website, starting as early as the summer. It will tap Alibaba's massive customer base, logistics network and settlement system, gaining direct access to the market. Yahoo and Alibaba will work together on exports and customs processing.
The companies will pay only one-fifth the usual initial costs for selling products on Tmall, and will appear on easy-to-find spots on the site.
Yahoo Japan hopes to quickly increase such Japanese sellers to 1,000.
The Chinese e-commerce market is estimated at 50 trillion yen ($400 billion) or so, five times the size of the Japanese market. Alibaba controls more than 60% of the market, boasting 350 million users on the Tmall site.
Japanese e-commerce giant Rakuten earlier launched operations there but has retreated. And Amazon.com of the U.S. has a market share of just 3% amid the overwhelming strength of Alibaba, whose payment system has become the standard in the country.