Alibaba Is All Set To Make Its Way In Russia

Alibaba Group Holding single handedly has disrupted the Chinese market and it is comfortably dominating the e-commerce market in China. The way in which the company is working and contributing towards the sector has also left foreign companies astonished. Irrespective of its little or no impact on the foreign market, companies aspire to become Alibaba.

The Chinese giant posted a record breaking Initial Public Offering (IPO) valued at $25 billion. Hence, in order to keep its momentum going at high pace, it is focusing on expansion that will contribute towards its growth. The corporate giant has locked its new target market and it is now confirmed that the largest online retailer would be offering its services and online marketplaces to the people of Russia.

The general manager of Russia at Alibaba, Mark Zavadskiy, stated, "E-commerce truly meets Russian consumer demand in a way that traditional retail cannot -- it gives shoppers the option to choose for themselves when and where they want to purchase their personal goods."

Russia is said to have a massive e-commerce market valued at $14.5 billion. It has few local players, such as Ozon and Ulmart, which have established their businesses since inception.

There is a lot of space for Alibaba Group to make its way in the Russian market. It cannot only provide millions of items at lower rates but provide a selection that is unavailable as well. Mr. Zavadskiy added, "Chinese sellers have grown in popularity with Russian consumers because they have the products consumers want at prices they want to pay. It makes sense that we follow this demand."

Russia's e-commerce market is emerging and the company itself is opening the gate for the Chinese giant to enter and conduct business freely. It says that the e-commerce company should come before other players, either established or new, start to challenge it. This country will be a very new and different market for the company.

The Chinese e commerce business is focusing on expansion in order to grow its business substantially, along with maximizing revenues from all markets it has entered. Despite of the fact that it was recently accused of counterfeiting goods on its online marketplaces, such as Tmall and Taobao, Alibaba is one of the most demanding companies and so is its platform throughout the world.

Molly Morgan, who is the spokeswoman of the company, stated, “In Russia, we have seen steady organic growth in Russian consumers shopping on our AliExpress platform ever since it launched in 2010.”

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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