Does Europe have to fear China?
The European ecommerce market is doing well. It’s growing faster than the US market for example. But maybe it doesn’t have to watch out for American competition, but rather keep an eye open for the Chinese ecommerce market. Sales of Alibiba Group are expected to surpass those of the total ecommerce market in the US by year-end!
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Read that last sentence again. The sales of one online retail company are expected to be bigger than the ecommerce of a whole country. At least, that’s what the company’s chairman Jack Ma said last week, according to China.org.cn. He also hopes Alibaba wil exceed Wal-Mart to become the world’s biggest ecommerce retail company by 2015. Alibaba aims to be as innovative as Wal-Mart was in the last century.
Alibaba started as a B2B ecommerce website in 1999, but soon matured into the country’s biggest ecommerce company. The Alibaba Group is now home to several companies like Alibaba.com, AliExpress, Taobao Mall and Taobao Marketplace. It’s huge in China, and since a couple of years more and more international customers are discovering these online shops. And who’s to say Alibaba can’t play a role of importance in the United States or Europe?
Europe is already a interesting market for Amazon and Japanese ecommerce company Rakuten. As a matter of fact, Amazon is Europe’s top ranked etail company with sales that grew 19.3% to 16 billion dollars and Rakuten is the fastest-growing etail company in Europe, with sales that grew 650% to 786 million dollars. So, another big player from a growing ecommerce country wouldn’t raise eyebrows here. It’s a thought that Jack Love, chairman at Internet Retailer, shares. “Since the European ecommerce market is so decentralized – there are no pan-European operators like the e-retailers that sell across the United States – that’s a shining beacon of opportunity for major players to emerge and grab market share”, he said on retailingtoday.com.