Alibaba.com to Expand AliExpress Through Acquisitions
Sina Tech, 8/18/10
CEO David Wei told overseas media today that Alibaba.com (1688.HK) will "definitely" make acquisitions in the next few quarters, particularly to improve its small-order international B2B wholesale platform AliExpress.
Wei said that Alibaba is seeking partnerships based on the B2B2C model as it expands into overseas markets, particularly with businesses in trade show, insurance, banking and logistics sectors as well as any other trade services that are valuable to SMEs. Alibaba aims to forge strategic partnerships with businesses in these industries over the next few quarters.
Alibaba will be focused on expanding its presence in the US, Japan and India over the next several years, not only collecting revenue and income, but specifically making investments over the next three years in these markets.
Wei added that Alibaba has over 2 mln registered users in the United States, but under 5% are registered as merchants. The UK, by contrast, has only several hundred thousand registered users but 14% are merchants.
Wei said that Alibaba has two major drivers for revenue growth: membership fees and value-added services. Value-added services accounted for only a single-digit share of total revenue three years ago and a double-digit share in the mid-teens two years ago, according to Wei. Now, VAS is 25% of revenue from Alibaba's international marketplace and 20% of revenue from its domestic China marketplace.
Keywords: B2C David Wei B2B Internet Japan overseas revenue Alibaba India registered users UK VAS 1688.HK AliExpress e-commerce USA strategy
Sending
