Electronic mall to open in China for Japanese goods.
By Michael W. Jones
Japanese electronics and other goods are in high demand in China. Next month, a new internet shopping mall will open in China that will allow Chinese to pay for Japanese goods with the popular China UnionPay cards.
The China UnionPay Co. Cards are extremely popular in China, far more popular than other types of payment cards in China. The UnionPay cards are available as both credit and debit cards. To date, more than 1.8 billion of the cards have been issued in China. The UnionPay cards are much more widely used than similar credit and debit cards from western issuers like Visa and Mastercard.
The new electronic mall, named “Buy-J.com” will accept the China UnionPay Co. cards for payment, marking the first time that it will be possible to use the Chinese card for such purchases from Japanese companies. The site will sell a wide array of Japanese goods, including electronics, gadgets, clothing, cosmetics, and food from about 100 Japanese companies, according to an AP story. Chinese citizens will be able to buy the Japanese products on line, pay with the UnionPay card, and have the goods shipped to China.
Ryuichi Kobayashi, a spokesman for Japanese Sumitomo Mitsui Card Co. said that his company had made a settlement arrangement with the China UnionPay Co. to allow the credit and debit settlements. The bank, and the involved Japanese companies, are aiming for $44 million in sales during their first year in operation, cashing in on the current desire for hard-to-get Japanese goods in China.
It is estimated that about 250 million Chinese use the Internet, many of them for the purpose of shopping. That number represents a sizable new market for the Japanese companies participating in the mall, and will represent a large commission amount for handling settlements for Sumitomo Mitsui Card Co. Everyone involved stands to profit from the venture.
Banjer Kobayashi said that many of Japan’s most popular firms will be involved in the new electronic mall. He specifically mentioned electronics retailer Yodobashi Camera Co., drugstore chain Matsumoto Kiyoshi Co., children’s clothing maker Narumiya International Co. and mail-order company Cecile Co. Other companies, and countries, will be watching to see how this venture works out for the Japanese.
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