Chinese ecommerce giant Alibaba has decided to acquire 17% stake in Weibo, microblogging website owned by online media company Sina Corp, for $586 million. Both companies have also agreed on another term in which Alibaba will increase the stake to 30% over a certain period of time on for a mutually agreed valuation.
Both companies decided to forge partnership in the areas like online marketing, data exchange, online payment, and account connectivity. Weibo and Alibaba also looks to explore new business models in the social commerce arena to leverage their large user base in their ecommerce platforms.
Over the next three years, Weibo is expected to generate $380 million in advertising and social commerce through this deal. Read more
In an infographic released by the Chinese eCommerce behemoth Alibaba, there are 242 million online shoppers in China and they are expected to spend $265 billion in 2013. Alibaba.com in 2012 sold over $175 billion worth products and made a history by notching up $3 billion in sales in a single day.
The Infographic follows:
$125 billion – The total transactional volume of China’s online retail market by the end of 2012. This accounts for 5.2 percent of China’s overall sale of consumer goods. With a staggering growth recorded in the last 5 years, Chinese ecommerce market is apparent to scale new heights. We could see some of these in 2013, if not all.
China will surpass US to become the biggest online commerce market
According to a recent study, Chinese ecommerce market will reach $251 billion by the end of 2013, which is annoyingly close to US’ $252 billion. Chinese ecommerce market is leveraging the surge of their internet users. With this in mind, the Chinese ecommerce companies are improving their ecommerce ecosystem to become the world’s largest ecommerce market, which is backed by their government. According to them, this target is a high-priority task in 2013.
Second-tier cities will join the ecommerce bandwagon
According to Alibaba group, the Chinese ecommerce behemoth, sales growth in the top Chinese cities like Shanghai, Beijing and Guangzhou were below 40 percent, while the same in the smaller cities rose above 60 percent. Alibaba recorded a massive $160 billion in revenues in 2012. Read more
Chinese e-commerce giant Alibaba sold one trillion RMB worth of goods in 2012, the company announced today. That’s $157 billion U.S. in gross merchandise volume (GMV), which easily surpasses U.S e-commerce giants Amazon and eBay combined.
In fact, Alibaba chairman Jack Ma said only two companies have ever recorded annual transaction volumes at this level: Wal-Mart and Alibaba.
Alibaba — which recorded $3 billion in sales in a single day earlier this year — is a conglomerate primarily composed of Tmall, which manages e-commerce operations for thousands of companies in China, and Taobao Marketplace, a rough equivalent of eBay. All payments are handled by Alipay, the company’s own payments processor, and Alipay has over 700 million registered users — with credit card information.
The company has grown massively in the past four years as the Chinese middle class increases in size and wealth, and as it has become a hub for a massive share of Chinese e-commerce. E-commerce has been growing at 60 percent year-over-year in 2012 in China’s third and fourth-tier cities, the company says, and currently just over five percent of all Chinese retail spending – RMB 18.39 trillion — passes through Alibaba websites. Read more
Online retailers in China are fostering the industry’s development through ramping up their focus on Singles Day, an event increasingly fulfilling the same role as Cyber Monday in the US.
Singles Day started as an alternative to Valentine’s Day in the 1990s, with unattached students buying gifts for their friends without partners. November 11 was the chosen date as it numerically reads 11.11.
This occasion has since grown into a broad equivalent of “Cyber Monday” in the US, the day after the weekend of Thanksgiving when ecommerce companies regularly run deals and discounts.
Alibaba, which owns Taobao and Tmall, two leading online retail hubs, secured RMB19.1bn ($3bn) in revenues during this 24-hour period, over three times the RMB5.2bn generated last year. Read more
Ecommerce sales rose by 66% in China in 2011, reaching a value of RMB780bn ($124bn) overall, according to new figures.
Alibaba, the online retailer, and IDC, the research firm, have released a new reportwhich stated that the web now delivers 3% of total retail sales in the world’s most populous nation.
This figure is anticipated to expand to 7% in 2015, as the number of online shoppers increases and confidence in buying goods in such a way rises.
In demonstration of the knock-on benefits this could provide, Taobao, the country’s largest ecommerce site and a unit of Alibaba, created over 2.7m jobs last year, the report stated.
According to data provided by the China Internet Network Information Center, the online population in the rapidly-growing economy has hit 505m users. Read more
China is planning to draft new rules to govern the country’s rapidly growing ecommerce sector. This comes after online protests against a fee hike, reported by a news agency, who quote a ministry of commerce spokesman.
The government will draft the new rules to formulate clear rights and responsibilities for all parties in the online retail space and to govern the entrance and exit of third-party transaction players, Shen Danyang, a Ministry of Commerce spokesman, was quoted by Xinhua as saying at a news conference. Read more