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ホーム > Rakuten Direct プレスリリース > Notice concerning the business alliance of a subsidiary and entry into retail business in China

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Kenko.com, Inc. (Genri Goto, CEO)(TOKYO:3325) operates an e-commerce (EC) website selling nutritional supplements, pharmaceutical products, and other products via the Internet.
At a company board of directors meeting held on November 5, 2010, Kenko.com adopted board resolutions for entry into the retail market in China and for the establishment of a business alliance between Chinese distribution company Tianjin Redbaby Trading Co., Ltd., and KenkoKom Co., Limited (a Kenko.com Inc. subsidiary) for the purpose of developing business in the Chinese market. As of the same date, a basic agreement contract was concluded concerning the business alliance. Additional information is presented below.

1.Reasons for market entry and the business alliance

With the objective of entering China’s highly promising health-related e-commerce market, Kenko.com has for some time been carrying out marketing studies and researching candidate companies for a business alliance. Furthermore, to serve as a base of operation for future business development in China, on October 28, 2010, we established the company KenkoKom Co., Limited in Hong Kong.
An Internet/catalog mail order sales company handling baby products, cosmetics, food products, and many other items, Tianjin Redbaby Trading Co., Ltd. operates Redbaby, which is China’s largest health-related e-commerce site. Based on the judgment that the establishment of an alliance with a strong local company would facilitate the quick startup of business operations through the utilization of that company’s business infrastructure and customer base, a basic agreement concerning a business alliance has now been concluded between Tianjin Redbaby Trading Co., Ltd., and Kenko.com subsidiary KenkoKom Co., Limited.

2.Content of the business alliance

Consideration of sales to Chinese consumers of the health-related products handled by Kenko.com, with the sales to be done by subsidiary KenkoKom Co., Limited, via the Tianjin Redbaby Trading Co., Ltd., website.

3.Overview of Kenko.com subsidiary KenkoKom Co., Limited

Name:KenkoKom Co., Limited
Representative:Helen Zhang, CEO
Location:Hong Kong
Business content:Sales of health-related products in China
Capital: HKD 10,000
Date established:October 28, 2010
Major shareholder:Kenko.com Inc. (100%)

4.Overview of the other party of the business alliance contract

Name:Tianjin Redbaby Trading Co., Ltd
Representative:Xu Peixing, CEO
Location:Tianjin, China
Business content:Internet/catalog mail order sales company handling a comprehensive range of health-related products, including baby products, cosmetics, food products, etc.
Capital:USD 300,000
Date established:June 2004

5.Future prospects

The impact of this matter upon the consolidated performance of the Kenko.com Group is considered negligible at this time. If an impact on performance comes to be anticipated as a result of future developments, notification will be given in a timely manner.

【Kenko.com profile】http://www.kenko.com/
Started in May 2000, Kenko.com is an EC site for health-related products (nutritional supplements, pharmaceutical products, healthcare equipment, etc.). The number of products handled is approximately 120,000 (as of November 2010). Listed on the Tokyo Stock Exchange Mothers section under the stock code 3325 in June 2004.

【Inquiries】
   Kenko.com, Inc./Public Relations Office (Rena Takasuga)
Tel:03-3584-4138  Mail:pr@kenko.com