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Tag: Alibaba

  • BCBGMaxAzria opens Tmall store

    BCBGMaxAzria opens Tmall store

    BCBGMaxAzria, the US premier lifestyle fashion brand has partnered with B2C cross-border eCommerce solutions provider VoyageOne to expand its online footprint in China.

    “We are pleased to launch of BCBG on Tmall. We are very optimistic about the opportunity in China,” says Max Azria, founder, chairman and CEO of BCBG Max Azria Group.

    BCBGMaxAzria’s flagship line is now available to Chinese online shoppers on Alibaba’s Tmall Global through VoyageOne’s platform. BCBGMaxAzria can now efficiently integrate, sell, and manage its online selling process across multiple marketplaces in China.

    “BCBGMaxAzria is a truly an American flagship designer brand and completely understands the complexity of cross-border eCommerce landscape in China and the need for a proven technology and solution delivery mechanism by which BCBGMaxAzria seamlessly integrate, launch and manage its online footprint in China,” said Dennis Zhang, VoyageOne CEO.

    “We’re extremely pleased to partner with BCBGMaxAzria to delivering true online shopping and customer service experiences through a single platform while help them grow their online business in China.”

    Michelle Magallon, SVP of digital commerce & omnichannel with BCBG Max Azria, says China is an important international market for the brand.

    The BCBGMaxAzria Winter 2015 collection is already available at Tmall’s Hong Kong and China stores.

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  • Alibaba launches Taiwan, Hong Kong venture funds

    Alibaba launches Taiwan, Hong Kong venture funds

    China’s Alibaba has announced two venture funds to help entrepreneurs with projects who can leverage the resources of Alibaba’s ecosystem.

    A HK$1 billion (US$130 million) venture fund – named Entrepreneurs Fund for Hong Kong – will be managed by venture capital firm Gobi Partners.

    A second – Entrepreneurs Fund for Taiwan – will have initial capital of NT$10 billion (US$316 million) and be managed by CDB Capital, a division of China Development Industrial Bank (CDIB).

    As well as cash, the two new funds will offer 200 internship opportunities annually for graduates and final year students of local tertiary educational institutions. Successful applicants will be able to work for between six and 12 months at Alibaba Group companies in Mainland China.

    Andrew Lee, the former CFO of EnTie Bank will act as executive director of the Taiwan fund, with directors including Charles Yen, co-founder and principal of the AAMA Taipei cradle program and Joseph Tsai, senior EVP of Cathay Financial.

    The fund will be headed by Cindy Chow as executive director. Other directors include Dr Allan Zeman, founder and chairman of the Lan Kwai Fong Group, and Savio Kwan, an independent business consultant who served as president and COO of Alibaba from 2001 to 2003.

    The funds are intended to help entrepreneurs and position Hong Kong and Taiwan as business hubs engaged regionally and globally, with a mandate to invest in qualifying companies in the startup, growth and expansion phases. Selected ventures will be able to leverage the platforms in the Alibaba ecosystem to offer products and services to mainland China and globally, given that Alibaba operates in eCommerce, logistics, mobile platforms, cloud computing and financial services.

    Said Joseph Tsai, executive vice chairman of Alibaba Group: “At Alibaba, our mission is to make it easy to do business anywhere. We are passionate about fostering entrepreneurial spirit and hope the resources provided by the fund will help unleash potential for innovation and entrepreneurship.”

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  • Paipai.com axed to fight counterfeiting

    Paipai.com axed to fight counterfeiting

    China’s number 2 eCommerce player JD.com has axed its consumer to consumer online storePaipai.com in a bid, it says, to cut sales of counterfeit goods.

    The store will be closed by December 31 and after a transitional period of three months, the company will completely close down the website of Paipai.com.

    “The shutdown of the C2C platform is in line with the company’s policy to combat the marketing and sale of counterfeit products and the company will make persistent efforts to protect the interests of consumers and brands,” JD.com said in a statement.

    Paipai.com, along with another site Wanggou, were acquired from WeChat parent Tencent in March 2014. The combined businesses have a goodwill and intangible asset value of US$400 million, making it a very expensive gesture in the war against counterfeit goods in Mainland China.

    The company says it has yet to calculate the book value of the loss given the two websites are accounted for in the books as a combined entity and Wanggou will continue to operate.

    While JD.com is amputating a limb, Alibaba is undergoing a high profile battle in the US courts with French luxury brand owner Kering which alleges Alibaba has failed to take sufficient steps to counter the trading of counterfeit goods on its various websites, as reported by Inside Retail Asia last week.

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  • Pitney’s Borderfree Expands Online Catalog to Woo China

    Pitney’s Borderfree Expands Online Catalog to Woo China

    Pitney Bowes Inc. subsidiary Borderfree is expanding its online shopping catalogue for Chinese online customers to serve their penchant for America-based consumer products. The company intends to provide these customers with more options for American brands in fashion, sports apparel and lifestyle accessories ahead of the upcoming holiday season.

    In particular, Borderfree has extended its partnership with China’s e-commerce giant Alibaba Group Holding’s subsidiary company, Ant Financial’s Alipay (an online payment services provider). This will allow China-based consumers to purchase directly from the retailer’s websites using localized payments. Borderfree’s collaboration with Ant Financial helps obliterate currency and logistics barriers, allowing leading global retailers to explore the Chinese soil.

    Borderfree realizes that customer security is paramount in online transactions and hence, is working closely with payment and marketing platform “Alipay ePass” (which allows U.S. merchants to gain access to Chinese consumers with an Alipay account), to woo in major crowd this holiday season. On the other hand, this deal also enables Alipay’s 400 million registered customers to access the products of a wide range of international retailers including Aéropostale, MotoSport, Bloomingdale’s, Macy’s and Saks Fifth Avenue at comparable prices.

    In our opinion, the incredible growth of online shopping in China, which likely accounts for over 40% of the world’s retail e-commerce according to EMarketer, is enough to bank on the profitability of this particular deal. Moreover, the fact that the U.S. happens to be the leading e-shopping destination of the world further brightens the commercial attractiveness of Pitney Bowes.

    Earlier in June, Pitney Bowes completed the acquisition of Borderfree to complement its e-commerce business. Encouragingly, this gave the company a first-mover advantage for exploring a multibillion-dollar market, which enjoys a double-digit growth rate. Notably, company sources suggest that the rapidly growing Chinese e-commerce sector is emerging as the key driver of the nation’s overall economic growth, primarily fueled by increased Internet penetration and surge in smartphone ownership.

    We believe the approaching holiday season will witness colossal growth in online purchase data, and this bodes well for Pitney Bowes’ profitability. Moreover, integration of the Borderfree business with its global e-commerce business will help the company reap significant cost-synergies in the long run.

    Pitney Bowes currently has a Zacks Rank #3 (Hold). A better-ranked stock in the industry is Advanced Emissions Solutions, Inc., that holds a Zacks Rank #2 (Buy).

     

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  • Kering ratchets up legal fight with Alibaba

    French-headquartered luxury brand owner Kering has unsuccessfully sought to fast track its legal suit against Alibaba after what it considered “greatly troubling” comments by Jack Ma.

    Kering, which owns Gucci and Yves Saint Laurent among others, filed suit against the Chinese eCommerce giant in May after it considered more passive efforts to get Alibaba to stop selling counterfeit versions of its goods on its websites were not bearing fruit.

    Last week Kering has asked a US judge to waive the mandatory obligation of mediation between the two parties, citing a quote by Ma in a magazine article.

    Kering’s lawyers say the company was “greatly troubled” by Ma being quoted in Forbes saying there was no chance of settling.

    “I would [rather] lose the case, lose the money… But we would gain our dignity and respect,” Ma was quoted saying.

    Kering’s lawyers argued if this is indeed Ma’s position, mediation would be futile.

    But Judge Kevin Castel disagreed, on Monday urging the parties to continue with mediation.

    “Needless public comments can undermine talks. Yet public positions and positions in confidential talks have been known to vary… The Court strongly recommends that the parties proceed to mediation,” he wrote in an order.

    Kering maintains Alibaba is a giant conduit for counterfeiters and alleges the company has knowingly made it possible for traders to sell fake good on its sites.

    According to a letter to the judge, seen by Reuters, Kering’s counsel said of the interview: “It leaves the impression… that Alibaba‘s request for mediation was not made in good faith, but rather as a tactic to delay this case and to force Plaintiffs to expend resources spinning their wheels in an expensive and time-consuming mediation.”

    An Alibaba spokesman Bob Christie said Ma had made the comments prior to Kering agreeing to Alibaba‘s proposal to mediate.

    “If they want to return to the path of litigation, instead of mediation, we will vigorously defend our legal rights and reputation,” he said in an email to Reuters.

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  • Online Shoppers Rose in China, Supported Alibaba’s Revenue Growth

    Online Shoppers Rose in China, Supported Alibaba’s Revenue Growth

    According to eMarketer, China and the US accounted for ~55% of the global Internet retail sales in fiscal 2014. It also mentioned that China and the United Kingdom have a higher proportion of “online-to-total retail sales compared to the US.” It’s important to note that ~27.5% of China’s population bought goods and services online in fiscal 2014 while 10% of the total retail transactions were through the online mode.

    In comparison, 73% of the United Kingdom’s population made online transactions. E-Commerce accounted for 13% of the overall retail sales in fiscal 2014. While the United Kingdom is positioned eighth in total retail sales, it’s third in global online retail sales.

    part2

    Alibaba, Amazon, and eBay will look to capitalize on the huge potential of rising online sales. This could be positive for their revenue and bottom line.

    Online shoppers rose in China

    According to eMarketer, there were 148 million online shoppers in China in 2010. The shoppers accounted for 11% of the population and 32% of the total Internet users in the country. By the end of fiscal 2013, the number of online shoppers in China grew to 302 million. The shoppers accounted for 22% of the population and almost 49% of total Internet users in the country. By the end of fiscal 2020, the online shoppers will likely to grow to 700 million. Alibaba saw its revenue rise from $1.8 billion in 3Q13 to $3.5 billion in 3Q15.

    Amazon is part of the iShares U.S. Consumer Services ETF (IYC) and the First Trust Dow Jones Internet IndexSM Fund (FDN). It accounts for 6.80% and 11% of the ETFs, respectively.

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  • China’s Retail Sales Rose in October

    China’s Retail Sales Rose in October

    China’s total retail sales of consumer goods rose 11.0% year-over-year (or YoY) to 2.8 trillion yuan in October. The data indicated better-than-expected growth in retail sales and a slight improvement from September’s rise of 10.9%.On a year-to-date (or YTD) basis from January to October, the total retail sales of consumer goods reached 24.4 trillion yuan, up by 10.6% YoY.

    The sale of mobile phones, building materials, and household products led to the strong growth in retail sales.

    Chinas Retail Sales Continue to Rise 2015-11-17Enlarge Graph

    A rise in retail sales is a step toward the transition of the Chinese economy from an export-oriented to a consumer-driven economy. This is highly recommended because export orders are falling due to weak global demand. This is the aim of Chinese authorities as well. However, with the slowdown in Chinese local and foreign sales, an increase in retail sales comes as a surprise and a bright spot in the Chinese economy.

    E-commerce played a major role in driving up retail sales. From January to September, the national online retail sales of goods and services grew 34.6% YoY to 3.0 billion yuan, according to the National Bureau of Statistics of China.

    Some of the leading players in China’s e-commerce segment are Alibaba Group Holding, Baidu, JD.com, NetEase, and 58.com.
    Urban retail sales of consumer goods rose 10.8% YoY to 2.4 trillion yuan in October. On a YTD basis, urban retail sales rose 10.4% YoY to 21.0 trillion yuan.
    Rural areas have become a major source of retail sales growth. Retailers are focusing on rural China to increase the penetration of e-commerce. In October, rural retail sales rose 12.2% YoY to 0.38 trillion yuan. On a YTD basis, they rose 11.8% to 3.4 trillion yuan.

    The Clough China Class A ETF (CHNAX), the Guinness Atkinson China & Hong Kong ETF, and the Eaton Vance Greater China Growth Class A ETF (EVCGX) have more than 10% exposure to the consumer discretionary sector. So a rise in retail sales would benefit them the most.

    However, the John Hancock Greater China Opportunities Class A ETF (JCOAX) had only 6.4% of its assets invested in the consumer discretionary sector. So a rise in retail sales will have a lesser impact on the performance of that fund.

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  • Singapore banks must innovate

    Singapore banks must innovate

    Singapore banks must now innovate in this challenging environment where economic growth is uncertain, and disruptive forces are now at play, said Prime Minister Lee Hsien Loong on Thursday.

    “Our banks are in a strong position,” said PM Lee at UOB’s 80th anniversary dinner, noting that Singapore is at the heart of a rising Asia, and banks here have a strong balance sheet.

    “But at the same time, this is a very competitive business that continues to evolve rapidly. For while overall our banks are very good, in almost every specific area, we can find others who are better than us.”

    Looking at China’s success in mobile payments, PM Lee pointed to the Alibaba sales on Singles Day on Wednesday, where 70 per cent of the billions in sales were done through mobile purchases.

    Technologies such as blockchain, which can be used for real-time gross settlement or trade finance verification, are also emerging, he said.

    “We have to continually innovate and keep up with the latest technologies and services.”

    Singapore’s financial sector was liberalised from 1997, partly as the industry was not as efficient, innovative, and responsive to the market as it should be, said PM Lee. Foreign banks were allowed into Singapore to compete, including in domestic retail banking.

    “This more competitive environment forced our local banks to consolidate. But it also spurred them to upgrade, innovate and grow,” he said.

    “Our strategy has worked. Today, our three Singapore banks have gained a reputation for being amongst the strongest and safest financial institutions in the world. And we have a strong, vibrant financial sector that we can be proud of.”

  • Alibaba smashes Singles’ Day records, so why did shares dip?

    Alibaba smashes Singles’ Day records, so why did shares dip?

    November 11 is a day of sombre reflection across much of the West, with Commonwealth nations observing Remembrance Day while Veterans’ Day is an official public holiday in the US.

    It’s a world away in China, though, where it’s Singles’ Day – an idea begun in 1993 by four lonely Chinese students who reckoned the 11th day of the 11th month (note the four single ‘one’ digits) would make a great day to celebrate being unattached.

    It became a sort of anti-Valentine event, where those without partners bought themselves gifts and – as you do in China – enjoyed lots of karaoke.

    Enter e-commerce giant Alibaba – owned by Jack Ma, up until February China’s richest man – which swooped on the event to offer discounts on its goods.

    November 11 in China has since morphed into an orgy of online spending. More and more firms have jumped on the bandwagon to make it the world’s biggest day of internet shopping.

    On Wednesday, Singles’ Day smashed sales records by midday. Shoppers were out in droves, racking up $5 billion of sales in the first 90 minutes on Alibaba, roughly double last year’s haul in the same period, reports the Financial Times. Alibaba also netted nearly twice the entire take of last year’s Cyber Monday – the day the US, fresh from feasting on Thanksgiving turkey, feasts on shopping deals – itself a record.

    Alibaba’s sales on the day rose 60% from last year to $14.3 billion. Another online retailer, JD.com, reported record transactions of more than 20 million.

    But despite beating records, Alibaba shares dipped nearly 2%. Why weren’t investors impressed?

    It’s because those concerns about China’s slowing growth still won’t go away – a point that Jack Ma himself highlighted on Thursday. Although he believes the government’s 7% GDP target for this year is achievable, he told CNBC: “I believe the next five to 15 months will be a tough time for China for various reasons, of course, one, the anti-corruption will definitely have some effect.”

    Jasper Lawler, a market analyst at CMC Markets, adds that Alibaba continues to be used as a US proxy for Chinese economic health “so shares dropped alongside industrial production figures”.

    Another batch of mixed data from China on Wednesday did little to allay concerns that the world’s second largest economy is slowing.

    “Industrial production growth matches its weakest since 2008, although retail sales improved,” wrote Mike van Dulken and Augustin Eden at Accendo Markets. Coupled with Alibaba’s new Singles’ Day record “we have further evidence of the nation’s shift from export-led to consumer economy”.

    Michael Hewson, chief market analyst at CMC Markets UK, remains concerned about retail sales in China.

    “The latest October retail sales numbers did improve to 11%, from 10.9% in September, which is still below the levels we were seeing at the end of last year of 11.8%,” he writes.

    “Furthermore this modest improvement doesn’t really chime with the stories circulating out of China at the beginning of October during Golden Week about surging sales in the restaurant, cinema and travel sales sector.

    “According to some reports, turnover at restaurants and retailers totalled more than one trillion yuan during the seven days, which equates to over $156 billion, so for retail sales to only improve 0.1% does seem rather at odds with the early October optimism.”

    Alibaba shares closed on the New York Stock Exchange at $79.85 on Wednesday, down more than 20% in the year to date. However, they’ve recovered from a yearly low on September 28 of $57.39 to trade currently at $80.00.

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  • JD.com seeks Alibaba probe

    JD.com seeks Alibaba probe

    China’s second largest online retailer, JD.com, has lodged a formal complaint with Chinese regulators, alleging its larger rival Alibaba is attempting to restrict competition.

    China’s competition regulator, the State Administration for Industry and Commerce (SAIC), imposed a new regulation on October 1 preventing eCommerce platforms from restricting their sellers from participating in promotions on rival platforms.

    According to a letter from JD.com, it has evidence of Alibaba “forcing” merchants to deal exclusively with one eCommerce site during promotional activities.

    JD.com claims merchants have been told if they participate in Alibaba’s 11.11 promotion, they must not participate in promotions on rival platforms – eg: JD.com. If they do, they face “punishment or sanctions”.

    But an Alibaba spokesman, Rico Ngai, told Reuters the company “strongly denies the accusations”.

    “Alibaba welcomes competition as it benefits consumers, merchants and service providers,” he said.

    But JD.com claims Alibaba’s behaviour has “harmed merchants’ interests” and “not only obstructed normal market competition, but also seriously harmed consumers’ interests”.

  • 11.11.2015: A new twist to Asian retailing’s biggest day

    11.11.2015: A new twist to Asian retailing’s biggest day

    China’s Singles Day – 11.11.2015 –  the biggest shopping festival in the world, will no doubt once again break international eCommerce records this Wednesday.

    But while watching numbers tick astronomically higher is exciting, retailers should be paying attention to what Alibaba is doing differently this year: omnichannel.

    For the first time, Alibaba is bringing part of Singles Day (also known as Double 11, or Guangun Jie) offline. It has promised that more than 1000 retail brands encompassing over 180,000 stores across 330 cities in China will join the 11.11 Festival.

    Customers will be able to price match in-store goods with TMall discounts. Some areas will be able to deliver products within two hours, essentially turning stores into distribution centres.

    Much like Alibaba’s 2014 mobile shopping push made mCommerce a “new normal,” you can expect 2015 to begin a boom in omnichannel. Retailers will do well to begin strategising through a smart integration of their physical stores and digital commerce now.

    Here are two guidelines to consider when reassessing how your physical and digital presences can complement each other in this new omnichannel world:

    Make the store a customer solution

    The consumer does not make a distinction between a brand offline and online – and neither should retailers. Physical stores create interesting opportunities to reduce customer friction points or quickly resolve customer problems. Extend in-store services to add incremental customer value or create a good atmosphere.

    We recently helped GrandVision, the world’s largest eyewear conglomerate, create a retail experience centered around eye care. They wanted to emphasize their medical-grade professionalism and commitment to demystifying eye care for consumers.

    Design points such as having an eye-testing facility placed in the middle of each store emphasises their dedication to this cause, and informational content placed across all digital channels means customers could empower and inform themselves across desktop, mobile or in-store digital panels.

    By consolidating all consumer interactions with GrandVision into one platform, everything from booking an eye exam to buying lenses have been made seamless both offline and on. The one view of consumers helps give store associates the tools they need to better understand customer motivations, provide support and make the store an integral part of customer interactions with the brand.

    Make your store experiential

    Retail used to be rooted in the transaction, but now that technology has decoupled transactions from physical spaces, retailers have tremendous freedom to build a memorable experience in stores.

    We helped Audi design an interactive experience for its flagship showroom in Beijing, using screens and responsive content to let customers cycle through endless customisations of their ideal Audi cars. The Audi City showroom cut down on costly retail rents while allowing Audi to showcase all inventory and imprint its brand message of “Vorsprung durch Technik (advancement through technology).”

    Physical store experiences properly integrated with digital are part of the equation for brand differentiation and continued relevance. Consumers go seamlessly from online to offline and back. Retailers need to learn to do the same.

  • 40 per cent of online trade in China fake or substandard

    Chinese lawmakers have been urged to tighten controls on online trade after a report suggested counterfeit and low quality goods accounted for just over 40 per cent of sales.

    The report on the implementation of the latest iteration of the Law on the Protection of the Rights and Interests of Consumers also notes that China is now the biggest online marketplace in the world, overtaking the $300bn US market, and was valued at 2.8trn yuan ($442bn) last year.

    An article notes that complaints concerning online purchases rose 357 per cent to reach 77,800 last year, according to data from the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

    This has prompted calls for the Chinese government to bring in new legislation to govern e-commerce, particularly with regard to the rights of consumers and the responsibilities of retailers.

    The report (in Chinese) was presented at a plenary meeting of the National People’s Congress (NPC) Standing Committee, which was presided over by Chairman Zhang Dejiang.

    The revelations come as China’s online retail platforms, and particularly Alibaba, have come under intense scrutiny of late over counterfeit listings, and the measures taken by the sites to take them down.

    Earlier this year, the State Administration for Industry and Commerce (SAIC) accused Alibaba of being ‘lax’ in what it allows traders to sell on its online retail platforms, prompting a war of words between the company and Chinese government.

    Alibaba’s chief executive Daniel Zhang said during the company’s financial results conference last week that the company “remains committed to providing a trusted consumer experience with authentic products by driving merchants that peddle counterfeit products off our marketplaces.”

    .

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  • 11.11.2015: Here’s what to expect on Wednesday

    11.11.2015: Here’s what to expect on Wednesday

    There are just days to go before Alibaba Group holds its 11.11 Global Shopping Festival. Merchants are laying on stock and pre-packing popular products to ready them for shipment. Delivery companies are training hundreds of thousands of temporary workers hired to help deliver the massive volume of parcels generated during the November 11 online sale, held on China’s Singles Day holiday.

    Consumers are gathering digital discount coupons for use during the 24-hour shopping frenzy, locking in deals in pre-sales events, and limbering up their clicking fingers. For members of China’s young and tech-savvy spending class, the 11.11 sale is a race against time as they log on at midnight to vie to complete web purchases for limited stocks of coveted products while millions of others are jamming the Internet trying to do the same. Last year, the total value of purchases on Alibaba’s websites blew past RMB 1 billion (US$157 million) in GMV just three minutes after the sale began. Twenty-four hours later, the total was $9.3 billion – enough to set a Guinness World Record.

    Will this feat be surpassed this year? China Post, the PRC’s postal service, estimates that 760 million packages will be generated by Singles Day sales held by all Chinese online-shopping websites on Nov. 11. That’s up significantly from 540 million packages produced last year, according to the post office.

    For its part, Alibaba Group – which started the sale in 2009 are runs China’s largest online marketplaces – isn’t making predictions. If past is prologue, though, then last year’s results might be indicative. Check out the infographic at the end of this story to see the 2014 sale highlights.

    This year, Alibaba is pushing its 11.11 festival in new directions by involving more international merchants and shoppers. The event will feature more than 6 million products from over 40,000 merchants and more than 30,000 brands from 25 countries, including the US, China, Japan, South Korea and European nations. Participating international brands include P&G, Unilever, Burberry, Estee Lauder, Zara, Huggies, Macy’s, Costco, Apple, Nike, Friso, Topshop, and Uniqlo, to name a few.

    Through Alibaba’s China and international marketplaces including AliExpress, its global B2C website, merchants will be selling directly to consumers in more than 200 countries and regions, according to Alibaba. Still, the company expects the majority of transactions to occur In China, where key product categories for the sale include baby and maternity, fashion and apparel, cosmetics, electronics and home appliances, health and nutrition, grocery, and fresh foods.

    Alibaba is also pushing several other initiatives for 11.11.

    The company has lined up brick-and-mortar retailers to participate through mobile and omnichannel commerce. More than 1,000 retail brands, with 180,000 brick-and-mortar stores in 330 cities across China, have joined the event. They’ll be offering smartphone-enabled shoppers a more integrated and interactive shopping experience whether shopping online or in participating stores. Omnichannel will also give merchants greater insights into customer demographics and shopping habits, according to Alibaba.

    Underscoring the trend in China toward shopping by smartphone instead of PC, nearly 43 per cent of sales took place on mobile phones during the 11.11 sale last year. mCommerce is expected to play an even bigger part this year. The sale will feature marketing campaigns for mobile shoppers, such as rewards of discount e-coupons to consumers who shake their phones while using the Taobao or Tmall mobile applications during promotional periods.

    Ordering the goods is one thing. Delivering them quickly is another. Alibaba’s logistics affiliate, Cainiao Logistics, is bolstering domestic and international shipping capabilities for the sale to ensure faster deliveries to consumers.

    Cainiao, the backbone of a network of 3000 logistics companies linked by centralised information platform, estimates that its partners will deploy more than 1.7 million delivery personnel, 400,000 vehicles, 5000 warehouses and 200 airplanes to handle deliveries for the sale. Cainiao has also launched a “Hassle-Free Logistics Service” consisting of 49 international delivery partners and 74 warehouses that can support 4 million cross-border package deliveries per day, the company says.

    This formidable infrastructure will soon be tested. The countdown to 11.11 has begun.

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  • Tmall.com fresh food offer expanded for 11.11

    Tmall.com fresh food offer expanded for 11.11

    As Chinese consumers continue to upgrade their diets with food ordered online directly from international outlets, Tmall.com is gearing up for this year’s 11.11 Global Shopping Festival by offering a wider assortment of international food and beverages for the giant 24-hour e-sale.

    On offer at the Tmall.com fresh foods subsite (miao.tmall.com) is beef from Australia, apples from the U.S., pineapples from the Philippines, lobsters from Canada, avocados from Mexico, kiwi fruit from New Zealand, and crabs from Russia, along with a host of other overseas delicacies.

    Tmall has added wine to the mix: Overseas wineries that have recently opened Tmall virtual stores include California’s Robert Mondavi and Penfolds from Australia. Currently Tmall’s fresh food vertical has listings for more than 100,000 products from more than 70 countries and regions.

    For food and beverage companies participating in the 11.11 festival this year, the sale is less about discounts and more about opening Chinese consumers’ eyes to the high-quality foreign products that, thanks to cross-border e-commerce, they can buy direct from overseas by shopping on Tmall. It’s also a chance to raise brand awareness and introduce new products and trends to millions of Chinese consumers.

    “Our goal for 11.11 is to get Chinese customers to be more discerning,” said Pete Yu, business development manager for Dole (Shanghai) Fruits and Vegetables Trading Co, the international fruit brand’s branch in China. “While good at discovering delicacies, we hope they can also tell the quality of fruit and understand the significance of quality.”

    Dole launched its Tmall shop in September, 2014, offering a variety of fresh-fruit imports such as pineapples and bananas from the Philippines, pears from Belgium, oranges from Australia and longans from Thailand. During the Nov. 11 sale last year, the company completed 17,000 orders.

    Yu said that this year, Dole aims to offer consumers quality fruits at affordable prices, rather than try to shift huge volume at deep discounts.

    “We believe Chinese customers will gradually accept idea of being healthy, and will be willing to pay a slightly higher price for fruits that meet international standards” such as Dole’s non-GMO papayas, he said. He added that the company is satisfied with the progress Dole’s eCommerce business has achieved so far.

    “Like many other international brands in the fresh food industry, our growth is strong and steady.”

    Yu’s insights were echoed by Li En, deputy director of eCommerce at Ocean Family, which has been selling high-end fresh seafood including shrimps from Argentina and king crabs from Chile on Tmall since 2011.

    Ocean Family has a strong offline wholesale network reaching tables of many luxury restaurants and supermarkets, Li said. Selling direct to online shoppers through Tmall provides direct exposure to potentially millions of new customers around the country.

    “By offering the best products and services at reasonable prices on Nov.11, we want to attract more customers to try new products, building a virtuous circle,” he said.

    Some food sellers join the 11.11 festival – the largest online sale in the world – to launch new products during a period of peak Tmall traffic. During a special 11.11 promotion last year, Tmall said it sold more than 90,000 live lobsters from Canada, which subsequently became a popular fresh food item sold on the site throughout the year.

    This year, crawfish from the US states of Washington and Louisiana are slated to make their China market debut.

    “Chinese people have the tradition of eating crawfish, but the water and habitat of crawfish have been polluted in China,” said Yu Zhongyan, CEO of Aichen (Shanghai) Trading Co, which runs a fresh food store on Tmall. Shoppers who order crawfish online during the 11.11 festival can expect to have the live crustaceans shipped by air and delivered directly to their homes within 48 hours.

    “We are confident that wild crawfish from the US will be welcomed by Chinese consumers,” Yu said.

    At this year’s 11.11 Global Shopping Festival kick-off ceremony, Tmall signed strategic collaboration agreements with fresh food associations and government bodies from 25 countries to facilitate fresh food imports. Cainiao, Alibaba’s logistics arm, and its partners can deliver fresh food to homes in more than 246 Chinese cities within 24 hours.

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  • Alibaba goes Dutch

    Alibaba goes Dutch

    Alibaba says new relationships sealed with Dutch organisations in recent days will help continue to lay the groundwork for European expansion of its eCommerce businesses.

    Alibaba Group says it has established several partnerships and collaboration agreements with Dutch organisations including airline KLM and the Dutch Consulate.

    Announced during a visit to Alibaba’s campus in Hangzhou, China, by a delegation of Dutch companies and government officials, the agreements included the launch of a Holland “pavillion” onTmall Global, an Alibaba online marketplace that provides a streamlined sales and logistics channel for overseas companies to sell directly to Chinese consumers.

    Alibaba, which is positioning its shopping websites as a cost-effective gateway to China for foreign brands and merchants, has in recent months established a number of online pavillions showcasing the products of countries such as the US, UK, France and South Korea. Built in partnership with the Dutch Consulate, the Holland pavilion on Tmall Global will feature popular Dutch brands such as Nutrilon, Hero Baby, Philips and Friso, Alibaba said in a statement.

    Meanwhile, Dutch supermarket chains Albert Heijn and Attent have launched new flagship stores on Tmall Global, while Alibaba’s travel website, Alitrip, has announced agreements with KLM and theNetherlands Board of Tourism & Conventions. The latter struck a deal with Alitrip to establish a destination page for Chinese travellers on the website and to “explore new ways of collaboration,” according to Alibaba.

    KLM agreed to launch an Alitrip.com flagship store selling airline tickets and other services to Chinese travellers.

    The visiting Dutch delegation included Dutch King Willem-Alexander, who is touring the PRC as part of an official state visit. Alibaba Group executive chairman Jack Ma, who hosted the delegation with other Alibaba executives, said in a speech that “Holland is a nation that can make impossible possible… Alibaba is also a company that loves to take challenges, loves to innovate, and loves to try new things”.

    “Many people said 16 years ago our dream was impossible, but we have made it a reality today,” Ma said. “Now we have over 120 million people shopping on our marketplaces each day, where they have access to products and fresh produce from far-away countries around the world such as Holland.”

    Alibaba, which dominates China’s eCommerce market, has said that increasing the size of its global e-commerce operations is a key long-term strategy. The company has been beefing up its European ties, this month announcing the expansion of its London office and the establishment of a new office in Milan, with locations in Germany and France to follow. Ma was recently appointed as a business advisor to UK Prime Minister David Cameron.

    Alibaba also plans to highlight international eCommerce and cross-border shopping during its upcoming 11.11 Global Shopping Festival, a massive 24-hour sale to be held Nov. 11. More than 80 Dutch brands currently offer products and services on Alibaba’s Tmall and Tmall Global marketplaces, and many will participate in Tmall’s 11.11 festival promotions, the company said.