Alibaba decides to add Russian merchants and markets to boost its sales.
Alibaba is looking to expand its market as globally as possible due to the recent news of a decline in China’s economy soon. It is opening its market to Russian merchants in order to increase sales and has already added Russian shops, such as Wikimart and Incity to its marketplace, named AliExpress.
Alibaba group will launch this facility on November 11. It said in an email, according to Business of Fashion, the market would consist of Russian goods in its online stores. Russia’s locals now are using internet shopping more than ever and this is a great opportunity for the e-commerce company to launch Russian products to capture the wide market. It has not evidently missed the opportunity.
The online Chinese business has 22 million monthly users in Russia. Its international online market was previously worth $1 billion in the first half quarter according to data insight. The online shopping convenience is trending rapidly in Russia because of the attractive packages, sales, and prices. The platforms that are used the most in the country are Alibaba Express and JD.com among many others.
The act of collaborating with Russian merchants to increase its sales in this market is the best step that the company has taken. Online sales from China have already had an increase of 50% in the beginning of 2015 due to the weakening Russian currency and recession contributing to the decrease of the purchasing power of the locals; hence, they are now turning their faces towards the online easy and affordable online market.
The business development director of Alibabaexpress commented, “In choosing partners, we focused on categories of good that are in high demand in Russia, and highlighted Russian brands and companies that manufacture products in Russia.”
Alibaba is already expanding to Europe and has appointed employees specifically for those tasks in France, Italy, and Germany. The Single’s Day event, from which it profited last year, is ahead and since the never-ending expansion, this time it might be even bigger than expected.
Without doubt, the online market will get affected from China’s economy since it is investing such a huge sum of money in its expansion worldwide and is now focused on market outside its hometown and rural markets domestically. It should keep this in focus for now. Many other companies existing in China are also vulnerable to the economic fluctuation, which bothers investors as well.
Alibaba stock is selling at $71.76 today.
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