[Global Technology Reporter Zhang Zhiying] On the 26th, Russian media reported that LeTV, an enterprise from China, has ceased cooperation with the Russian Far East Development Fund, and that LeWeb, an e-commerce platform that specializes in selling Russian foods to China, has also been suspended. According to relevant reports, this platform was suspended due to LeTV’s $2 billion liquidity shortfall. Today, LeTV's latest response to the Global Network shows that the acceptance of “Russian food†in the Chinese market is still low, making it impossible for both parties to reach a consensus in the market strategy. This is the reason why the two sides could not reach further cooperation.
Caption: LeTV CEO Jia Yueting
Letv Ecology expressed to Global World that after careful market research, the “Russian food†brand is relatively weak in China, but Russia is also unable to invest a lot of money in building the brand and e-commerce platform in a short period of time. Russian exporters The willingness to promote their own brand is not very strong either.
“We believe that in the Internet era, we will not break fast. If we can't concentrate resources in a short period of time and quickly establish brand potential and achieve rapid success, the chances of success in the latter stage will be relatively low. This is why both China and Russia are holding a wait-and-see attitude towards LeLive.†According to the eco-industry, it will be better to look for a startup platform based on market conditions.
It is reported that LeLive is a joint project of the Russian Far East Fund and Letv Russia and Eastern Europe. It will sell food from Russia’s Far East to Chinese users by building an e-commerce platform, LeLive.
In September 2016, the Russian "Kommersant" reported that LeTV will establish a Russian food trading platform through cooperation with Russia. In the next three years, it will invest 10 billion rubles in this project (approximately RMB 1 billion at the exchange rate at that time). Yuan) LeTV will provide Russia with resources for advertising and distribution, while Russia will mainly provide food processing and production.
Russian Customs data also showed that in 2016, Russia exported 1.55 billion U.S. dollars of food to China, which made China the largest exporter of Russian food.
According to public information, LeTV has subsidiaries in Russia and Eastern Europe in Russia and mobile phones and other products in Russia. LeTV’s top executives have repeatedly expressed their esteem for the Russian market.