12-11-2017, 01:38 PM
Chinese internet regulators are planning to buy 1% stake in Chinese tech firms including Youku Tudou which is a part of Alibaba. They also want a seat on the company board and a greater say in company operations. This state interference has unnerved some investors but its impact on Alibaba should be marginal. Alibaba’s revenue pie from media segment is very small whichshould limit the headwinds due to these policies. Negative impact of these policies on Alibaba’s stock pricewill be negligible and investors should focus on the long term growth potentialof the company.
Earlier this year, Alibaba launched its e-commerce platform through its subsidiary called the Paytm Mall. Paytm Mall was separated from the original payments entity called Paytm which held a 68% market share in the Indian payments space. Now, one could say that this is a few years too late. I did too. But in the recent festive season, it claimed that it already had a 20% market share in e-commerce. Obviously at the moment it is just a claim as every retailer makes unverified claims of a dominant market share this time of the year.
Part of a wider push into offline retail, Alibaba (NYSE:BABA) will invest $2.9B for a major stake in China's top hypermart operator, Sun Art Retail Group (OTCPK:SURRY). "Physical stores serve an indispensable role during the consumer journey, and should be enhanced through data-driven technology and personalized services in the digital economy," Alibaba CEO Daniel Zhang said in the statement.
Alibaba goes offline with grocer stake - Alibaba Group Holding Limited (NYSE:BABA) | Seeking Alpha
Alibaba (NYSE:BABA) is raising its stake in logistics affiliate Cainiao to 51% from 47% by investing 5.3B yuan ($801M). It also expects to invest 100B yuan, or $15.2B, over the next five years to boost its global logistics network. Future goal? Alibaba wants to fulfill orders on the mainland withing 24 hours and within 72 hours globally.
Alibaba looks to grow logistics - Alibaba Group Holding Limited (NYSE:BABA) | Seeking Alpha
Amazon (NASDAQ:AMZN) is running Kindle ads across Alibaba’s (NYSE:BABA) China-based shopping sites in a move that suggests Amazon has given up on trying to compete in that market. Alibaba and JD.com (NASDAQ:JD) dominate the Chinese e-commerce space with Amazon scraping out less than a 1% market share after a decade of trying, according to Recode. In Q2, Alibaba held a 51.3% sales share in the China e-commerce retail market with JD.com snagging 32.9%, up from 17.7% in 2014 according to an eMarketer report. Amazon instead plans to focus on dominating the India market after promising a minimum $5B investment in the region. Previously: JD.com gaining on Alibaba's Chinese e-commerce market share (Sept. 6)
JD.com (NASDAQ:JD) is gaining on Alibaba’s (NYSE:BABA) e-commerce market share, according to an eMarketer report using data from Analysys International Enfodesk. In Q2, Alibaba’s business-to-consumer Tmall e-commerce platform held a 51.3% sales share in the Chinese e-commerce retail market. JD.com was up to a 32.9% share, up from a 17.7% share in 2014. The gains largely came from the region’s consumers moving away from consumer-to-consumer sales. JD.com’s Q2 revenue was up 44% on the year to $14B but the company reported a net loss due to marketing expenses.
CNBC reports that Alibaba (NYSE:BABA) plans to open its first brick-and-mortar shopping mall near the company’s Chinese headquarters in Hangzhou. The five-floor “More Mall” will be constructed on a 40K square meter piece of land and will feature a mix of conventional retail brands and unique brands from Alibaba’s e-commerce Taobao platform. The More Mall is scheduled for an April opening. Previously: Alibaba opening 10K brick-and-mortar locations in China (Sept. 1)