The online retail giant, Alibaba has stretched its physical presence in retailing industry after pumping billion dollars worth of investment with its new strategic project with a combination of both online and offline retailing.
The online retail giant, Alibaba has stretched its physical presence in retailing industry after pumping billion dollars worth of investment with its new strategic project with a combination of both online and offline retailing. Alibaba which is arguably the largest and most dominant e-commerce Chinese company also recently bought 15 percent stake in Beijing Easyhome Furnishing worth RMB 5.45 billion ($867 million). It also invested in a second deal worth $486 million into big data retail, and both deals took place over the weekend.
Beijing Easyhome is also another retail giant and is number two in its field with 223 physical home furnishing and DIY-style stores across the 29 Chinese provinces. The second investment was for Shiji Retail Information Technology in which Alibaba investment was for the acquisition of 38 percent stake, according to Reuters. Shiji offers data-related services to boost clients’ base and engagement and other services for high-street retailers and hotels.
The investment in Beijing Easyhome deal is the fourth main deal that the e-commerce giant has made in a blue chip company. The others include investments in Sun Art, a hypermarket company, and InTime, shopping mall operator for $2.9 billion and $ 2.6 billion respectively in last year alone. Before these deals, it had invested in Suning, a high-profile retailer of electronics for $ 4.6 billion and bought a stake for InTime in the year 2014.
Besides investments in other outlets, it also independent investments on its own in Hema supermarket chain which was one of the few retailers to adopt cashier-less checkouts in the early stages. The new unique vision for Alibaba allows clients to benefit from mobile shopping. It also has the advantage of testing the products before use or directly taking their complaints about their purchases later among other benefits.
And just before the New Year celebrations in China calendar and few days after a week, it pumped about $500 million for two top on-demand and prominent start-ups in India. The Chinese giant invested $300 million in e-grocer Big Basket which is about a third of the company and boosting its competitiveness over Amazon in India. It also pumped another $200 million for Zomato, a food delivery platform through its affiliate firm by the name of Ant Financial subsidiary.