Coinspeaker
Alibaba to Launch TMall E-Commerce Site in Europe
Chinese multinational conglomerate Alibaba Group Holding Limited (HKG: 9988) is planning to reach the European market by launching TMall, one of its key e-commerce platforms, in the region. The initiative marks significant progress in Alibaba’s international strategy and reflects the giant taking its own niche in the European market.
Speaking at the Viva Tech conference in Paris, Alibaba Group President Michael Evans explained:
“What we will focus more for the future is to build local businesses, so you will see something called TMall which we have in China become TMall in Europe, which means we will serve local brands and local customers in local markets. The future is about building local businesses.”
It is not the first presence of Alibaba in Europe, but it will be the first project of such a kind for the company. In particular, TMall is China’s biggest business-to-consumer (B2C) e-commerce platform that allows brands to manage their own sales, product offerings, and branding in Chinese e-commerce. When launched in Europe, TMall will focus on selling local brands to local shoppers. It is not yet clear if TMall would be merged in any way with AliExpress which is already present in Europe.
According to Evans, Alibaba aims to provide European customers with a specialized and personalized purchasing experience. Due to TMall’s well-established reputation and expertise, it will be easy.
Currently, Alibaba is running a pilot project in Spain. Called Miravia, this marketplace connects brands and content creators with consumers, featuring fashion, beauty, food, and lifestyle products. The brands available on Miravia include Disney, Lego, L’Oréal Paris, P&G, Unilever, Lacoste, Xiaomi, and Delonghi, as well as popular Spanish brands such as Munich, Cecotec, and Silbon.
Alibaba’s Restructuring Process
Back in March, we reported on Alibaba’s decision to split into 6 business units, with each being capable of pursuing an IPO. These groups include Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group, and Digital Media and Entertainment Group. Five of the six groups would have their own CEOs and boards. The idea was to “unlock shareholder value and foster market competitiveness”.
Alibaba CEO Daniel Zhang commented:
“The original intention and fundamental purpose of this reform is to make our organization more agile, shorten decision-making links and respond faster.”
TMall in Europe will be a part of the Taobao Tmall Commerce Group that focuses on Taobao and Tmall – China’s largest e-commerce marketplaces that make up more than two-thirds of Alibaba’s total revenue.
