China’s Alibaba (NYSE:BABA) Targets Australia in Global Expansion
Tuesday, Chinese online retailing giant, Alibaba (NYSE:BABA) announced that it will open its 1st local office in the Australian city of Melbourne later this year, after flagging its intentions to expand outside of China.
Alibaba’s global President Michael Evans said Australia was a “huge part” of the company’s long-term globalization strategy to raise its 423-M customers to 2-B by U 2036, as it plans to expand its presence internationally.
“Australia and New Zealand are a big part of our globalization strategy. In markets which are very important to us we want a good group of people working for us,” Evans told The Australian Financial Review Tuesday.
“We want to develop government and regulatory relationships; we want to grow here strongly. It’s a Key part of what we are doing internationally.”
The e-Commerce business, reportedly worth $200-B, currently has 8ht staff in Australia.
However, with plans to open up its 1st office in the city of Melbourne by the end of Y 2016, Alibaba will target Australian consumers as it plans to boost its business over the next 3-5 years.
Alibaba products are used by a number of Australian retailers, including Blackmores, Woolworths and Chemist Warehouse. Australia was ranked the 5th top-selling country into China during the company’s global shopping festival, Singles Day, last year.
Evans said Australian businesses would be well placed to take advantage of the spending boom in south-east Asia.
“We connect with about 500,000 consumers here. They are actually not all Chinese speaking consumers,” he said Tuesday.
“We are going to engage in e-commerce going both ways, export to foreign markets, import to Australia.”
Evans said most of Australia’s dealings with Alibaba centered around milk powder.
There are 1300 Australian businesses selling on Alibaba’s online global platforms, and the company is confident that number will rise once it begins its expansion into Australia.
|HeffX-LTN Analysis for BABA:||Overall||Short||Intermediate||Long|
|Bullish (0.38)||Very Bullish (0.58)||Bullish (0.25)||Bullish (0.29)|
Latest posts by Paul Ebeling (see all)
- The Street’s Key Stock Analysts Research Reports - May 21, 2019
- Asia: Gold, USD, Crude Oil, Stocks & Commodities - May 21, 2019
- Ferrari (NYSE:RACE) to Debut its Hybrid Supercar on 31 May, Here is a Spy Preview - May 20, 2019