Will Alibaba Always Reign in the Online Shopping Sector?


online shopping

When anyone thinks of online shopping in China, they automatically think of Alibaba. Why is this? Alibaba is considered to be the top merchant for online shopping, as it has dominated the market. Their domination of the market is thanks to their innovative ideas, ability to bring in new business and options to Chinese consumers, and ultimately making great business decisions. However, recent information has many people wondering if Alibaba is always going to reign in the e-commerce world or if they will become dethroned?

Alibaba Does Not Provide a Barrier to Enter into Market

When most companies rule their market, they have such a huge ownership of the market that it makes it impossible for any other company to enter. That is not the case with Alibaba. According to Dangdang.com’s CEO Li Guoqing:

“Alibaba sales only account for about 5% of retail sales of China and that is not an enough barrier to entry…If some companies get a right new business model, there are still plenty of chances to beat those current leaders.”

Ultimately, the CEO is pointing out that Alibaba could easily be overtaken if someone were to come along with a better business plan than Alibaba. This brings to light whether this is a better business plan than Alibaba’s?

Alibaba’s Online Shopping Business Plan

The rate at which this company is making changes and staying on top of the latest trends is what makes this the retailer that is going to dominate the online shopping world for several years to come. Consider these innovations just within the last few years:

  • Announcing that they will be investing into more local services
  • Winning their license to distribute wholesale medicine, you can learn more about this here
  • Being the first to get into the medical market via online shopping
  • Joining forces with several other companies to ensure their product can reach more people
  • Garnering deals with the USPS to increase delivery speed
  • Opening up the Tmall Global project to attract more global sellers via e-commerce

The list is endless and always expanding. There is not one day that goes by that Alibaba is not in the news for something. They have had their setbacks, mainly with many accusations that the decreasing stock market was going to be the end of Alibaba, along with rumors of counterfeit products becoming an issue again for the company. However, in the end Alibaba still rises among the other retailers in the e-commerce world.

So, will Alibaba always reign in the online shopping sector in China? No one knows the future, and as pointed out the company does not hold the entire e-commerce community attention. However, for right now, Alibaba is gaining their footing in China and with the decisions they are making, they are likely to keep their position within the economy for several years to come.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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