- Alibaba has decided to enter European market and challenge the online retail giant, Amazon.
- Alibaba reduced prices below Amazon's to capture the attention of local European vendors & brands.
- Small enterprises see an opportunity while Alibaba has failed to bring the larger brands onboard.
- Wang Mingqiang says that overseas brands would need some time to figure out the kind of platform that it is.
- Mango says it doesn't wish to associate itself with AliBaba or Amazon anytime soon.
As per the latest announcement, Alibaba, the renowned king of retail in China has decided to conquer Europe. Currently, it is cutting its prices below Amazon’s to capture the attention of local vendors and brands. However, sources revealed that there are mixed reviews about the situation.
While a myriad of small enterprises has joined hands to form Alibaba’s European platform, AliExpress, larger brands being skeptical of this progress, have yet to delve in.
Alibaba Failed To Bring Benetton, Mango, And Cortefiel Onboard
Benetton, Mango, and Cortefiel, owned by the Spanish fashion group, Tendam are all popular brands that have been asked to become a part of AliExpress. Unfortunately, the platform was unsuccessful in getting them on board. The reason behind this rejection was that these particular brands did not want to sell their products on a website that offers an acrylic batwing sweater priced at $14 and, an imitation leather miniskirt for $18 in their fashion options.
A senior executive from one of the brands that rejected the recent move by AliExpress commented that they needed to improve their standards and establish a proper brand name to gain success and generate ample revenues in European markets. At this, Wang Mingqiang, the head of AliExpress stated that overseas brands would need some time to figure out the kind of platform that it is.
He added that these brands would have the ability to design their separate stores within the boundaries of the platform. They could also create their own homepages and customize it with videos and pictures to promote their own image.
Mango Says It Doesn’t Intend To Associate With Alibaba Or Amazon Anytime Soon
While Tendam and Benetton didn’t comment at the moment, the company, however, currently works with Amazon. On the other hand, Mango revealed that it sells on neither website and does not intend to do so.
Though she evaded answering the question regarding approaching these brands, a representative of AliExpress did state that they are exploring various avenues to search for partners for the benefit of both consumers and sellers alike.
Alibaba decided to sell lower-priced products through AliExpress such as USB cables for $3 and crystal earrings for $2 to captivate the locals. In the past six months, the platform has been welcoming local brands and vendors to improve its profitability. It hopes to emulate the success of virtual malls that have control over more than half of the online sales in China.
Alibaba is currently trading around $220.0 in the stock market that marks around 45% of growth as compared to that of January 2019.