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Alibaba Group commits to ANZ market

Profile

Alibaba Group (NYSE:BABA), the world's largest online and mobile commerce company, has taking another step in its globalisation strategy, meeting with key Australian and New Zealand stakeholders to advance its local operations and further the ability of ANZ businesses to reach international consumers.

Alibaba Group’s President, Michael Evans, who leads the international growth strategy for globalising the company and expanding its business outside of China, visited Auckland, Wellington, Sydney and Melbourne in mid July as part of a roadshow that educated companies on how they can use Alibaba Group’s various platforms as a gateway to China and other international markets.

“We believe the international growth opportunity for Alibaba Group is enormous. ANZ is one of our key markets and a stronger presence here will advance our global goal of serving two billion consumers, while supporting tens of millions of small businesses, brands and retailers across the world,” said Michael Evans, President of Alibaba Group.

According to Alibaba Group, Australian and New Zealand products are thriving on its Tmall Global site but there is still huge potential for growth, due primarily to Chinese consumers’ growing demand for quality products coupled with the trusted reputations of both countries.

Currently, there are 1,300 Australian brands on Tmall and Tmall Global combined, 80% of which entered China for the first time through these platforms. In addition to gaining access to China’s e-commerce site, they are provided with Alibaba Group’s planning, merchandising, sales and marketing solutions to help them grow.

The best performing ANZ categories on Tmall and Tmall Global are mother and baby, supplement, cosmetic, and food and beverage, currently served by some of the market’s largest companies including Blackmores, a2 Milk, Jurlique, Fonterra and Penfolds. At the same time, smaller companies are gaining access to the platform via retailers, including Australia Post, Woolworth and Chemist Warehouse, which stock a range of locally-owned products.

Building new infrastructure in Australasia
Promoting this platform was not the sole focus of Mr. Evans’ visit, however, with another priority being to better explain the diversity of Alibaba Group’s offering and illustrate the company’s vision to build the entire operating infrastructure needed to enable local businesses to expand globally.

“In Australia and New Zealand, Alibaba Group is best known for its e-commerce platforms, which are backed by our infrastructural support in areas of payment, cloud, digital entertainment and travel logistics. These services give companies the tools they need to access international consumers, while at the same time improving the experience of consumers who want to shop globally,” Mr. Evans added.

Mr. Evans’ visit came in advance of the opening of an ANZ office in Melbourne in the latter half of 2016. Local operations will be led by Maggie Zhou, Managing Director, and benefit from the experience of John O ‘Loghlen, Business Development Director, and James Hudson, Director of Corporate Affairs and Marketing.

“With a local office and expanded team, we will be well-positioned to support Australian and New Zealand merchants already on our platforms, as well as new merchants looking to expand into China. We have an active consumer base of 423 million across our China retail platforms where they have access to authentic and quality products from countries around the world. By working together with brands and retailers, we want to be an enabling force for local businesses and entrepreneurs striving for success,” said Maggie Zhou, Managing Director Alibaba Australia.

“As Alibaba ANZ expands, we will also need to form quality partnerships with government and industry. Our team will be working with local market leaders who can provide the expertise and leverage to improve our services and ensure we deliver them as promptly as possible”, Ms. Zhou said.

Press Release: Alibaba Group