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Interview

Chinese wholesaler DHgate.com links to Japan's small businesses

Platform slashes costs of entering China's vast market, CEO says

CEO Diane Wang co-founded Joyo.com, bought out by Amazon.com. (Photo by Takeshi Kihara)

HONG KONG -- Chinese e-commerce company DHgate.com, a platform for cross-border business-to-business transactions, will help small and midsize Japanese enterprises sell their products in China, founder and CEO Diane Wang told Nikkei in a recent interview.

Smaller companies need a platform to break into the Chinese market and can reduce entry costs with DHgate, Wang said, describing a "boom" in B2B commerce.

Founded in 2004, DHgate connects 1.2 million sellers around the world to 10 million buyers, including individuals and businesses.

The platform offers 33 million items, according to Wang, also a co-founder of e-commerce site Joyo.com, which was acquired by Amazon.com.

DHgate seeks to improve supply chain efficiency and help seller businesses develop sales channels in China. Artificial intelligence and big data are used to determine optimal transport routes, which can lower costs by up to 60% compared with conventional methods, Wang said.

The company's name refers to the Chinese city of Dunhuang, a key point along the ancient Silk Road connecting China to the West, according to the company's website.

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