Alibaba competes with Amazon in Europe for Singles Day
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Cainiao warehouse is where employees pack merchandise into crates for customers. This logistics subsidiary of Alibaba Group Holding prepares the workers to take orders ahead of Singles Day, a shopping event in Wuxi province, China on Nov. 9, 2020.
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BEIJING — AlibabaAs the Chinese tech giant, China is competing with them in Europe, this year’s Singles Day sees more investment. AmazonThe European Union’s expanding ecommerce market.
According to Euromonitor International, Alibaba was still the number one online seller of eastern European consumer goods last year. Amazon was not on the Top 10 List for this region. This includes Czech Republic and Poland.
According to Euromonitor, Amazon is the most popular seller in Western Europe. This includes France and Spain. The U.S.-based ecommerce giant, however, has a 19.3% market share remaining in 2020.
According to data, Alibaba’s market share grew from 2.2% in the previous year to 2.9% by 2020.
According to Euromonitor International, Alibaba occupied the first position in eastern Europe’s e-commerce market in 2019. The data shows that Allegro, an online Polish shopping website, was the winner of the 2020 pandemic. Wildberries came in second. This pushed Alibaba to the third position last year.
As online shopping continues to grow in Europe, the competition is fierce. In the midst of multiple Covid-19 epidemics, stay-home and social distancing policies have been in effect for months.
NielsenIQ reported in June that it was time to move on from ecommerce in Europe.
For “fast-moving consumer goods” — a category that includes food, beverages, personal care and home care — the report said e-commerce sales growth doubled in Italy and Spain in the first quarter of this year, compared with the same period in 2020. At the time of publication, updated figures were not available.
Alibaba prepares for Singles Day — in Europe
Alibaba hopes to profit from this wave of growth. In the weeks preceding the announcement, different business units announced plans to expand into Europe. Singles Day shopping festival.
Alibaba, a Chinese company, organized the shopping event. The Singles Day is also known as “Double 11” since it falls on the 11th day of the 11th month of the year — Nov. 11.
Alibaba, which is an e-commerce platform that sells to customers outside China, has been promoting the international shopping festival in recent years. This platform connects Chinese sellers and overseas buyers. It allows foreign consumers as well as businesses to benefit from the exchange. buy directly from factories in China
Double 11 will be an excellent way to help these businesses grow. This is a fantastic way to acquire new customers.
Jonathan Cheng
partner, Bain & Company
In a Mandarin telephone interview, Li Dawei (head of AliExpress Supply Chain) stated that Brazil, Russia, and Spain are the key countries to AliExpress’s overseas expansion.
Alibaba is founded Jack Ma is reportedly traveling in EuropeThis month, he traveled to China for the first time in over a year. He was there to learn about local agriculture practices and technologies. CNBC was referred to Jack Ma Foundation by the company, who did not respond immediately to our request for comment.
Subsidizing delivery costs
AliExpress intends to double its support for international logistics this Singles Day compared with last year. It is slower than last year’s claim that AliExpress spent $1 billion on international logistics support. five times as muchAs it was in 2019, on subsidies
AliExpress stated that it was able to claim during a time of global shipping congestionIt also stated that customers were not charged more and it hasn’t experienced any delivery problems due to its dependence on charter flights. AliExpress also sells most goods. small consumer products and don’t need to be transported by ship.
AliExpress has announced that the weekly international charter flight rates for Singles Day will go up to 100 per week starting Nov. 11, and 30. This is an increase from 80 per week.
Alibaba’s logistics arm Cainiao introduced package lockers to major Spanish and French cities in September 2021. Alibaba has increased its investment in package lockers before Singles Day on Nov. 11th, 2021. These allow couriers and residents to receive multiple packages simultaneously.
Cainiao
According to Cainiao logistics, packages that leave China can be delivered at six centers in Europe or one in Russia by the Cainiao logistic arm.
Shopping festivals have also encouraged investment in package lockers. These allow couriers deliver multiple packages at one time to residents of a neighborhood.
Cainiao, a logistics unit, announced in September that it had set up 170 lockers in Madrid, Barcelona, Spain and over 80 in Paris, France. It stated that it would install approximately 5,000 lockers in the world before Singles Day.
Cainiao, international commerce and retail revenue grew by at most 50% during the period that ended June 30, compared with a year ago. Each business segment accounts for around 5% of Alibaba’s overall revenues.
Local customers
AliExpress wants to not only sell to European consumers, but it also wants to connect local merchants with its platform so they can benefit from subsidies. Li is the AliExpress Supply Chain head.
But he stated that businesses would rather work with more than one ecommerce site, such as AliExpress.
Li indicated that both small- and medium-sized merchants are interested in building their own brand on these websites. Li also noted that AliExpress has a more third-party role, selling services such as logistics and store management.
“In general I think there’s lots of learning from China in terms of, how do you think about e-commerce,” Jonathan Cheng, partner at Bain & Company and leader of the firm’s Greater China Retail practice, said on a call with reporters Wednesday. China has been a leader in customer operations, marketing effectiveness, and other areas.
As these businesses grow, Double 11 will be an excellent way to go. Cheng declined to discuss Europe but said that it was a good way to get customers. Amazon did something very similar.”
He also noted that companies must think strategically about how they can retain customers and make profits after years of fast growth.
— CNBC’s Saheli Roy ChoudhuryThe report was contributed by the following:
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