Despite Alibaba seeming to have success at everything it does, it cannot claim this when it comes to 11 Main. 11 Main was the US shopping arm that was opened by Alibaba only a year ago, and have found that despite their popularity in China, the brand simply did not perform as they had hoped on the market.
Alibaba has not stated the exact reasons for selling 11 Main, or for how much they are selling this for. All that is known at this time is that the brand is being sold to OpenSky, a US firm. Alibaba has stated that they will keep a small stake in the company.
In addition to 11 Main, they are also selling Acutiva, Vendio and SingleFeed to OpenSky. These are companies that are support and logistic supports associated with 11 Main.
When 11 Main first started in the US, Alibaba had hoped this would be the key to increasing their hold on the overseas market. According to Jack Ma, Alibaba hoped to:
“We wish to have 40 percent business in overseas market, so far our overseas business only accounts for two percent.”
It seems that despite how successful Alibaba is in China, they simply cannot beat out the main competition on the US market. It would seem that Chinese brands sell in a different manner than US brands, as US buyers may be shopping different than Chinese consumers.