Alibaba’s AliExpress sets off global expansion with 10 billion yuan subsidy
The new AliExpress initiative is a strategic response to amplified competition from emerging Chinese online retailers, such as PDD Holdings’ Temu and fast-fashion retailer Shein. Alibaba’s overseas expansion is increasingly important due to weakened domestic consumer spending following an unstable post-pandemic economic recovery.
AliExpress, Alibaba Group Holding’s international e-commerce platform, plans to offer subsidies to encourage more Chinese brands and merchants to sell overseas. This strategy aims to counter increased competition from regional e-commerce players. The ‘10 billion yuan of subsidies‘ campaign will initially assist 1,000 Chinese brands and merchants, including current Tmall (Alibaba’s domestic retail platform ) users.
AliExpress program enrollees will receive marketing aid to enhance online traffic and special delivery services through Alibaba’s Cainiao Smart Logistics Network. Participating sellers will also gain access to Alibaba’s other international platforms like Lazada, Miravia, Trendyol, and Daraz.
The new AliExpress initiative is a strategic response to amplified competition from emerging Chinese online retailers, such as PDD Holdings’ Temu and fast-fashion retailer Shein. Alibaba’s overseas expansion is increasingly important due to weakened domestic consumer spending following an unstable post-pandemic economic recovery.
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