Alibaba Tries to Draw Brands on Amazon to Its Global Site

Core Viewpoint - Alibaba Group Holding Ltd. is intensifying efforts to attract established brands from Amazon to its global e-commerce platform AliExpress, aiming to expand its presence in key markets like Europe and Latin America [1][2][5] Group 1: Strategy and Initiatives - AliExpress is promising lower shipping fees and a smaller cut of sales compared to Amazon to entice major brands [2] - The initiative is part of a broader strategy to increase customer acquisition and sales in competitive markets [2][5] - Alibaba plans to leverage its existing brand partnerships from its domestic platform T-Mall to enhance AliExpress offerings [3] Group 2: Market Context - Alibaba's previous attempts to penetrate the US market were unsuccessful, leading to the sale of its US platform to a competitor [5] - Despite challenges, the growth of international units and the success of competitors like PDD Holdings Inc.'s Temu and Shein Group Ltd. may motivate Alibaba to re-enter these markets [5][6] - Alibaba's foreign operations are primarily focused on regionally specific businesses such as Lazada in Southeast Asia and Trendyol in Turkey [6] Group 3: Financial Commitment - Alibaba has indicated a willingness to invest significantly in its e-commerce initiatives, with plans to allocate up to 50 billion yuan (approximately $7 billion) in subsidies to compete against JD.com [7]