One of the stocks we hold in the domestic portfolios is TradeMe. The company is an online marketplace for goods – effectively the eBay of New Zealand – and enjoys a dominant market position. But that could soon change. It is about to go head-to-head with Facebook, which has announced the launch of its own marketplace function. We will be watching TradeMe’s tussle with Facebook very closely. TradeMe dominates the used goods trading market in New Zealand, with eBay having a very small share. TradeMe has been able to leverage the traffic flow the marketplace site has generated to build other platforms with similar barriers to entry through the virtuous circle of consumer traffic resulting in vendor participation, which in turn drives ongoing consumer participation.