Alibaba looks to double the number of brands it works with internationally
Chinese ecommerce giant Alibaba, the number one player in online retail and a host of other digital industries in China, is looking to make a bigger splash worldwide with the addition of a new platform. The company announced a new, English-language, portal on its flagship online sales platform Tmall on Wednesday. Alibaba is hoping that it will entice global players who are underexposed to the Chinese market to list products.
Alibaba’s share price has appreciated by 24% so far this year
Source: Yahoo Finance
Alibaba said it hopes to bring in merchants from around the world with its new offering, with Yi Quan, the service’s deputy general manager, saying that the goal is to double the number of foreign players on its platform to 40,000 in the next three years. Tmall Global is currently the most subscribed platform dedicated to buyers of foreign goods in China – and it’s hoping to extend that dominance significantly.
Alibaba is hoping that a larger number of non-Chinese goods will spur its platforms to greater growth, compensating for the cooling of the Chinese economy in the midst of its on-going trade war with the US. It’s also hoping to get a step up on the competition – JD.com, Pinduoduo, and others. The company’s billionaire co-founder, Jack Ma, has set a goal of generating half the company’s revenue from outside China by 2025.
In an interview, Yi Quan said: “The website will widen our reach to merchants, especially to those medium and small sized businesses around the world. We will help them with our logistics and marketing services.”
With a growing prominent foothold in Southeast Asia thanks to its Lazada acquisition, and a dominant showing at home, Alibaba is increasingly setting its sights on global dominance.
Dominion holds Alibaba in its Global Trends Managed Fund.
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