Monday 25 April 2016

Alibaba To Open Office In Australia


Alibaba announced last week that it will make its way in the Australian market as a part of its global expansion plan.
Australia is one of those countries that have never gotten much traction and many Internet companies of the United States have not established operations in the region. These companies are always in the limelight one way or the other. On the other hand, Alibaba Group Holdings Limited decided to open an office in Australia recently and it did not get any traction whatsoever.

Alibaba is trying very hard to expand its global footprints one way or another. It was currently focused to make its mark in the Indian e-commerce market but without establishing operations there.

The e-commerce behemoth Alibaba Group managed to process transactions worth at a massive $149 billion in the December quarter. Last week, the company officially announced at an event held in Guangzhou that it is exploring possibilities to inaugurate an office in Australia in the coming times.

According to the reports published by the Sydney Morning Herald, the company has already completed one senior hiring for its future office in the region. Fairfax Media learned that the chief executive of the NSW branch of the Australia-China Business Council, James Hudson, would be joining the business from next month. The media group further added that a famous entrepreneur John O’Loghlen has also joined Alibaba’s team for the Australian office.

It will not be wrong to say that the expansion of Alibaba in the region is significant development for the retail sector. Jack Ma, who was an independent entrepreneur, founded the company. It listed on NYSE with a market value of $200 billion. The Chinese tech giant went public in what is said to be the largest Initial Public Offering (IPO) in history valued at $25 billion. Maggie Zhou is a senior executive in charge for the past two years in New Zealand and Australia.

As always, the purpose of opening an Alibaba office in the region is to help the local Australian brands feature themselves in the huge Chinese market. Alibaba marketplaces have nearly 407 million active buyers and SMBs in the region can benefit from this opportunity. Hence, by establishing an office there, BABA can increase the number of sales through Australian customers.

The company said in a statement, “We aim to have dedicated country operations to work closely with Australian merchants and partners, and it is our plan to establish an office in Australia in late 2016 to better help local brands and merchants to access to the Chinese consumer market.”

The online retailer refused to provide more details.

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