Best Denki Co. and Softbank Corp. on Thursday agreed to establish a joint venture on Oct. 19 that will sell household electronics and other merchandise and services over the Internet, the companies announced.
Capitalized at 300 million yen, BEST Corp. is to be 66.7 percent owned by Best Denki and 33.3 percent by Softbank. It will start operating in January 2000 and expects to receive orders totaling 1.5 billion yen in its first year and 10 billion yen in 2003.
BEST Corp. will make use of the distribution network of Best Denki, a major mass merchandiser of electronics, and the Internet technology and knowhow of Softbank, a leading computer software distributor, they said.
The online company promises to deliver orders within a week after customers place them, and its Web site will offer travel, financial and insurance services and run advertisements for its suppliers.
Softbank President Masayoshi Son touted at a press conference the cost savings of electronic commerce over conventional mail-order services, while Best Denki President Yasumitsu Kitada said that the venture will enable his firm to cater to customers worldwide.