Alibaba Group Holding Limited (NYSE: BABA) is a giant in the Chinese e-commerce market. Now it seems that the company is making serious inroads into the dynamic e-commerce market in Europe.
What happened: Alibaba among the 3 most sensible e-commerce corporations promoting customer products in Eastern Europe in 2020, CNBC reported, mentioning Euromonitor International. Amazon. com, Inc. (NASDAQ: AMZN) is not on the list of the 10 most sensible in the region, according to the report.
For Alibaba, this is a decline from the leading position it held in 2019. Polish e-commerce site Allegro and Russian e-commerce company Wildberries have overtaken Alibaba and benefited from the COVID-19 pandemic.
Amazon, however, ruled Western Europe, which includes the region’s complex economies such as France and Spain, Euromonitor’s knowledge showed.
Although it maintained pole position in the region, its overall market share would have remained almost static at 19. 3% in 2020.
Related link: What to expect when Alibaba releases its quarter-year results
Alibaba is big in Europe: Alibaba is preparing to take credit for its Singles’ Day to take credit for its positioning on the continent and the great opportunity presented through the local market.
Alibaba operates AliExpress, an online e-commerce site aimed at promoting consumers outside of China. In recent years, the company has promoted the Singles’ Day grocery shopping festival through AliExpress.
AliExpress will also attract local merchants in Europe to its platform through the subsidies it offers, CNBC said, mentioning Li Dawei, head of AliExpress’ feed chain.
Targeting the developing e-commerce market in Europe will offer a cushion for Alibaba, which is lately experiencing a slowdown in China. The domestic economy is experiencing a weaker customer spending environment in a collapsing basic macroeconomic context.
Related link: Why these 2 Alibaba analysts expect a mixed and positive long-term outlook
Alibaba co-founder Jack Ma. Benzinga photos inventory via Dustin Blitchok.
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