Alibaba Group Set to be the Leading E-Commerce Provider Globally
Published By : 20 Sep 2012 | Published By : QYRESEARCH
Alibaba group, the e-commerce giant from China, is set to surge past U.S behemoths e-bay and Amazon by 2012.
In the last year, gross merchandise value (GMV) of Taobao.com, transaction based website was similar to the joint GMV of e-bay and Amazon. Taobao.com is the most profitable business group among Amazon’s seven business groups.
The Chief Strategy Officer at Alibaba, Zeng Ming said that the company is expecting to exceed those numbers. The company has set to achieve an objective of USD 158 billion by end of 2012. In 2006, the GMV of Taobao was USD 2.6 billion growing consistently at 100% annually. However, with a humble start in the beginning, Alibaba.com has shown phenomenon growth and now the company has about 29.4 million registered users across 240 countries. Zeng Ming said that the company has registered 5% of the total retailing market in China.
The major challenge for the Alibaba group is from customer driven, built-to- order and mobile e-commerce. To overcome these challenges, the company is transferring its business model from the B2B to C2B model which is more focused on providing customization and to cater to user’s needs. Over the last two years, the Company has been engaged in developing a mobile platform. The Alibaba group also plans to increase its backend support to start their e-commerce website. Ming also said that as logistic is the main problem for Chinese companies, the company is concentrating to increase its growth in e-commerce during the next three years.
Three years back, the company had developed its cloud platform and expects that it will grow in the next ten years with a slow but steady growth in cloud computing.
Ming further added that Alibaba is the leading data provider in China with an objective to make cloud computing easily accessible globally - cheaply and easily. The Company expects that it will serve more than 10 million small business and enterprises and hire 100 million people to add an additional 1 billion customers.