News this week: Chinese
ecommerce giant, the Alibaba
Group, unveiled a series of plans to diversify and boost sales on its B2C
platform Tmall. In a bid to attract more
customers, Alibaba aims to reduce the price of goods sold on Tmall by
subsidising vendors to the tune of US$47 million.
The goods targeted will mainly be sold in the electronics
category, where vendors can reportedly apply to Tmall for subsidies to reduce
the price of goods sold or a rebate could be paid directly to consumers by Alibaba.
According to market research firm, Analysys International,
Tmall holds a 37% share of China’s B2C e-commerce market during the first
quarter of this year. 360Buy.com has 17%, while Suning Appliance, Tencent, and
Amazon.com each have approximately 2%.
Separately, Alibaba will also further expand its business
portfolio by entering the online book-selling market. Also on the Tmall
platform, Alibaba will offer more than 1.3 million titles including reference
books, novels, and business-related books. This offering will be in direct
competition with established players in China such as 360Buy.com, Dangdang
and Amazon China.
Rather than buying books from publishers and holding
inventory, Tmall will reportedly introduce 50 publishers and 20 B2C book
websites directly to consumers. Tmall plans to generate revenue through advertising
and commission from sales.
This post is excerpted from BSG's weekly e-newsletter
which is part of our subscription research service, BSG Tracker. Visit our website
to find out more about this service. You can also follow us on Twitter
for all the latest updates.
No comments:
Post a Comment