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Inside Alibaba’s Global Expansion Strategy


Aug. 25 2016, Updated 10:05 a.m. ET

European mobile debut

One of the key priorities of Alibaba (BABA) is the expansion of its global business. As part of that initiative, the company is planning to launch its mobile payment platform, Alipay, in Europe. Alibaba also wants to tap the market of Chinese tourists who visit Europe by ensuring that they use Alipay as the preferred payment option while traveling.

Alibaba has meanwhile entered into a partnership with Ingenico, a French payment processor, to extend the reach of Alipay to hundreds of European stores.

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Alibaba’s Alipay, which has about 4 million users, is facing increased competition from WeChat Pay, owned by Tencent Holdings (TCEHY). WeChat payments have been taking a toll on Alibaba’s market share, and so in order to maintain its leading market position in the mobile payments domain, Alibaba has increased its investment in Ant Financial, the company’s affiliate that operates Alipay, to drive user growth and engagements.

Why Alibaba plans to open its office in Australia

Alibaba plans to open its first office in Melbourne, Australia, by the end of 2016, according to several reports. Alibaba expects this latest move to help the company increase the number of sellers on its e-commerce platform. This move, in turn, should enhance the inventory of foreign goods for its customers in China and would likely increase the number of active buyers on its platform.

Recently, to increase the number of sellers on its e-commerce platform, the company hosted merchant events in Australia, New Zealand, and South Korea.

The company is also planning to invest in India (EPI) through acquisitions. Continue to the next part for a closer look.


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