Over 2.0 million smart speakers sold
The smart speaker market presents an enormous revenue opportunity. The worldwide smart speaker market is poised to grow to $11.8 billion by 2023 from $2.7 billion this year, according to MarketsandMarkets.
Alibaba (BABA) ventured into the smart speaker market last year with the launch of Tmall Genie, which is powered by its AliGenie voice agent. Alibaba has sold more than 2.0 million Tmall Genie smart speakers.
Leveraging smart speakers to improve shoppers’ experience
Amazon (AMZN) currently dominates the smart speaker market with its Echo speaker brand. Loup Ventures expects Amazon to close this year with a 52% share of the global smart speaker market. In comparison, Alphabet’s (GOOGL) Google is forecast to close the year with a 32% share of the global smart speaker market, while Apple is expected to command 12%. The rest of the players, including Alibaba and Microsoft (MSFT), are expected to battle for control of the remaining 4.0% share of the market.
E-commerce companies such as Alibaba and Amazon view smart speakers as a way to improve customers’ experience because the devices enable people to order products online by voice command. To keep up with the competition, traditional retailers Walmart (WMT) and Target (TGT) have partnered with Google to enable them to support voice shopping.
Alibaba enlists 100 partners on smart speaker
Alibaba has enlisted some 100 brand partners, including makers of luxury cars such as Volvo, to enlarge the addressable market for its Tmall Genie smart speaker and AliGenie.