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April 1, 2013 08:14 am GMT
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/oypucFdlqvk/
Rocket Internet-Backed Zalora Reportedly Shuts Down Its Taiwan Operations
One year after launching in Taiwan, Rocket Internet-backed Zalora may be shutting down its operations in the country. Though the Singapore-based fashion e-tailer has yet to issue a confirmation, e27 notes several signs that a closure of its Taiwan branch is already in progress. Zalora Taiwan’s Web site currently says that it will no longer provide telephone services for customer support after today. Furthermore, Taiwanese TV news station TVBS reported last week (link via Google Translate) that more than 100 employees were suddenly laid off as Zaloracanceled orders from suppliers.Reasons cited by TVBS for Zalora Taiwan’s potential demise include the high cost of marketing in Taiwan’s saturated online retail market, which is already dominated by e-commerce sites Yahoo! Taiwan and PChome. Zalora recently landed several high-profile investments, including $26 million from German retail conglomerate Tengelmann Group, but as Jacky Yap of e27 notes, Rocket Internet has already encountered several setbacks in Southeast Asia, including the closure of Home24. “Rocket Internet will not hesitate to pull the plug when it comes to evaluating a likely failure,” just as it shut down its operations in Turkey last August, Yap writes. Despite Zalora’s rapid growth, the reported closure of its Taiwan operations is a reminder that Rocket Internet’s foothold on the Asian market is still not a sure thing. I’ve reached out to Zalora’s HQ for comment and will update if I hear back from them.Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/oypucFdlqvk/
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