Alibaba bares plans to revolutionize China's retail industry with USD 490 billion marketplace

October 13
11:28 PM 2013

Alibaba Group would be revolutionizing the retail industry in China. Chief Executive Officer Jonathan Lu said the company expected to bring its online transactions to around USD 490 billion or CNY 3 trillion in three years. That figure would overtake the largest retail network worldwide, Wal-Mart Stores.

Alibaba would invest USD 16 billion for logistics and support until 2020 for the move. This would allow the company to open Chinese interior markets and enable hundreds of millions of new customers to have access to online markets. Alibaba Chief Strategy Officer Zeng Ming told Reuters that retailers who are not yet doing business online would need to adapt. "The old companies that aren't willing to transform will be wiped out by competition. Most traditional retailers now understand if they don't move online, their time is limited," Ming said.

Using its logistics and access to powerful data, Alibaba planned to get products to more people faster than its competitors. It would also be establishing a financial services network. This would allow buyers to pay for their purchases and enable firms and even individuals to borrow money.

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