Friday, December 05, 2014
News this week: The Alibaba Group is turning its sights on the Indian market. The group’s founder and chairman visited India in late November, leading a large Chinese delegation.
In October, one of Alibaba’s largest shareholders, Japan’s Softbank, invested more than US$800 million in two Indian e-commerce companies (Snapdeal.com and Ola Cabs). Snapdeal has a similar model to Alibaba’s which aims to connect small businesses directly to buyers. The e-commerce market in India remains small. In 2013, it was valued at US$2 billion compared with US$300 billion in China.
Indian businesses are active on Alibaba’s network of e-commerce platforms. Indian businesses are second only to Chinese business on Alibaba’s sites. Approximately 400,000 consumers in China bought from Indian businesses last year according to Alibaba. While in India, Ma commented, “We will invest more in India, we will work with the Indian entrepreneurs going forward.”