E-commerce in China is now a prime shopping channel
Molly Morgan, Senior PR Manager at Alibaba Group EMEA
Alibaba Group Holding runs China’s leading online marketplaces. However, its business model is at the odds of Amazon. Molly Morgan, Senior Manager International Corporate Affairs at Alibaba Group EMEA, explains the growth drivers.
Alibaba Group Holding runs China’s leading online marketplaces. However, its business model is at the odds of Amazon. Molly Morgan, Senior Manager International Corporate Affairs at Alibaba Group EMEA, explains where does growth come from.
Global Retail News: Alibaba was created in 1999. Could you please present us the businesses of Alibaba Group Holding?
Molly Morgan: Alibaba Group is the largest online and mobile commerce firm in the world in terms of gross merchandise volume. We operate various businesses and build up support for our ecosystem from the services and operations of related and affiliated firms. One of our key businesses, Tmall.com, was launched in 2008 to address demand among Chinese consumers for branded products (sold directly from retailers and manufacturers via identifiable storefronts) and a premium shopping experience. Launched in February 2014, Tmall Global is an international platform, which enables overseas merchants to enter China’s online retail market. Sellers can conduct business from overseas without the need to open physical operations in Mainland China. They benefit from the exposure to the hundreds of millions of visitors on Taobao Marketplace and Tmall.com.
Global Retail News: In a marketplace model, the profitability is much higher (as a percentage of revenue) than a traditional retail model. What about Alibaba?
Molly Morgan: Marketplaces are a benefit for both brands and consumers. Consumers benefit because they can go to one website and find all of their favourite brands and discover new products in a trusted environment. Brands and retailers benefit because they are able to leverage an existing active user base to their products.
Global Retail News: In 2013, China has become the world’s largest online market, ahead of the U.S.A. How did this happen?
Molly Morgan: As the Chinese population grow and move into…