Alibaba to improve its global footprint, says CEO
Alibaba Group Holding Ltd new CEO, Daniel Zhang, said that the Chinese e-commerce leader is planning to invest heavily in existing and new ventures abroad, making its push beyond the China market a top priority.
Zhang's has made the comments at such a time when Alibaba is aiming to maintain its rapid growth even as the prospect of e-commerce saturation at home is looming over the company.
A report on Thursday on Alibaba's news and commentary website, Alizila, said that since taking up new post this week Zhang said in his first speech that they must absolutely globalize.
The vast bulk of Alibaba's revenue has been coming from its dominant domestic online marketplaces, but the company invests in a range of sectors abroad also.
This week, the company announced that it would set up a cloud computing base in Dubai, and boosted its stake in US e-retailer Zulily Inc.
Zhang was quoted as saying, “We will organize a global team and adopt global thinking to manage the business, and achieve the goal of 'global buy and global sell'”.
Alibaba is handling more transactions on its platforms as compared to Amazon.com Inc and eBay Inc combined. Zhang said that it would continue to invest heavily in new and existing overseas operations, including AliExpress, a platform for overseas consumers to buy Chinese goods, and Tmall Global, a marketplace for overseas goods to be sold online in China.
Zhang mentioned that if Alibaba does not globalize then it won't be able to last 100 years, a goal set out by Executive Chairman Jack Ma.
But growth of Alibaba's international commerce business has been lagging the pace of growth in China, even as the new CEO has faced the prospect of slowing domestic growth as saturation among online shoppers is threatening to hobble expansion.