Alibaba Expands Its Global Footprints To Russia

Alibaba will make its mark in the Russian market soon.

Alibaba Group Holding Ltd, the biggest ecommerce company in China, has recently announced that it wishes to expand its global footprints. For this reason, the company has decided to increase its investments in Russia to bolster its business.

According to the data obtained through Bloomberg, following the IPO of the company in 2014, the corporate entity has been using its AliExpress platform to attract the markets with high growth potential. This initiative will help them yield high returns in the long run.

The platform has acted as a major catalyst to contribute to the company’s overall growth in the long term, which governs around 14% of its revenues through global expansion. On the other hand, 86% of the company’s revenue is generated from ecommerce in China. Apparently, AliExpress is said to be the fastest evolving brand of all Alibaba Group products, enabling the company to obtain a substantial chunk of its revenues from the Russian, Brazilian, and United States market.

Jack Ma, the founder of the company, highlighted the reason for Alibaba’s desire to make its mark in Russia. The company already enjoys a brand image in this region and sees opportunity for further growth in the times to come. An International Economic Forum was held at St. Petersburg, the previous weekend, according to which, "Although we have only one employee working in Russia, Aliexpress managed to become the No. 1 most-visited eCommerce website in the country."

So now, the Chinese organization is all geared up to benefit from the potential of the Russian market. It has already established its representative workstation in Russia as mentioned in several reports published earlier this month. Alibaba Group Holding Ltd. is futuristic about this venture and thus looking for a local partner that can help them stir business. This will help the company to gain knowledge about the structure of the Russian market.

The Wall Street Journal reported that the entry of Alibaba in the Russian market will bolster online trading and will be a great step by the company in the long term. However, its entry in Russia will not just be beneficial to it only, as the Russian economy will benefit largely through this endeavor and will help them to overcome the persisting economic crisis along with bolstering trade with non-Western partners.

The Chinese business has taken a strategic move that will help the Russian economy and will open doors for it to establish itself in a new market.