Alibaba invests 1.3 billion in offline retail

Alibaba invests 1.3 billion in offline retail

The Chinese e-commerce company Alibaba has plans to advance its offline retail strategy by pouring more than a billion in it.

Alibaba Increases Its Offline Prescence
FinTech Industry Must Have Regulations, Xiaomi’s Head Says
Measures Taken To Crackdown Counterfeit Food in China

The Chinese e-commerce company Alibaba has plans to advance its offline retail strategy by pouring more than a billion in it.

More specifically, Alibaba announced on Sunday it would pay around EMB5.45 billion ($867 million) for a 15% stake in Beijing-based Easyhome Furnishing, China`s second-largest home-improvement supplies, and furniture chain.

Easyhome has 223 stores in 29 provinces, autonomous regions and municipalities across China, as the statement says.

This investment move signals that Alibaba wants to drive a business model called New Retail or a mix between digital and physical commerce. As the company explained in a press release, the investment will combine the advantages of the world`s largest e-commerce platform and rich offline sources.

Alibaba boasts over 580 million active monthly users on its e-commerce platform, as well as advanced analytical capabilities. It claims to be in a unique position to provide brand partners with timely and accurate insights into consumer preferences and buying habits.

Alibaba reportedly took a 36% stake in the biggest retail operator in China Sun Art Retail Group in November last year, as well as in the large Chinese electronics chain Sunning Commerce Group and the department store powerhouse Intime Retail.

Last but not least, Alibaba is implementing the online and offline shopping experience in the hyper-local Hema supermarkets the company manages.

COMMENTS

WORDPRESS: 0