NetEase to spend US$11 billion on goods for Kaola e-commerce unit

Beijing

NETEASE INC, China's second-largest video game publisher, is deepening a push into e-commerce with plans to increase spending on products from the US, Europe and Japan to sell to local consumers.

The company's Kaola e-commerce business will buy about US$11 billion of inventory over the next three years from the US, Europe and Japan to woo customers with everything from Dutch baby formula to Japanese cosmetics, Kaola chief executive officer Zhang Lei said in an interview. The number will probably be higher after factoring in purchases from Australia and South Korea.