-Ayoub Belouafi Bakhat-
I was surfing on internet and I have found a recent article about Alibaba and I want to share it with you.
But first…Do you know what is Alibaba? Let’s talk about it
Alibaba is the biggest online shop around the world and provides the following businesses:
- Consumer to consumer (think about Wallapop)
- Business to consumer
- Business to business
This Chinese company, allocated in Hangzhou, has 46.228 employees worldwide and its current net income for the year 2016 is estimated to be 71.289 billion CNY (we must be patient and wait until the end of 2016 to know the exact net income).
Alibaba has decided to open an office in Madrid next February to get more presence in Europe; especially in Spain, that is the second country that consumes more Chinese products after the United States of America. This announcement has been made during the last congress organized by the Asociación de Empresas de Gran Consumo (AECOC).
This company manage huge numbers, for example, there are 400 million active users that interact with Alibaba constantly and it is registering more transactions than Mastercard. But, despite that, Alibaba is not going to perform alone.
Correos is going to be the distributor that will put the infrastructure to deliver the products from south Europe to China. It is interesting to read what has said the Manager of Alibaba in Spain (Ernesto Cacabale) about this issue:
‘’Chinese consumers are willing to buy European products, and specially, south European products. Not all companies are ready. Everyone must learn’’.
In my opinion, I think that this quote is interesting because maybe we are going to be witnesses of the expansion of an existing market (Europe to China). If this expansion is real, we will see how the involved companies adapt their business strategies and logistics to this new phenomenon.
What do you think? Will be Amazon affected? Let’s have a debate!