360buy splits group buying business

China's second-largest business-to-customer e-commerce website by revenue, 360buy.com, said on Monday it will spin off the group buying business into a separate business unit.

It said the company plans to raise the strategic position of its group buying business. After the spin-off, 360buy's group buying sector will operate independently. The company also appointed Zhang Shouchuan, a former vice-president of 360buy.com, as head of the group buying unit.

"The move shows 360buy's determination and confidence in developing the group buying business," the company said in a statement.

The group's buying business was launched in December 2010.

The company said the sector demonstrated a strong growth rate, and more innovations will be introduced after the spin-off.

One of 360buy.com's investors, Russia-based Digital Sky Technologies, has invested in the popular US group-buying website Groupon Inc. Due to Groupon's rapid rise, thousands of similar websites have emerged in the Chinese market since 2009.