Chinese ecommerce group Alibaba has laid out its strategic plan for the next five years, which includes serving over one million domestic Chinese customers, facilitating RMB10 trillion (USD1.4 trillion) worth of consumption through the platform by 2025. This objective will help Alibaba meet its long-term vision of serving 2 billion consumers globally by 2036. The announcement came after Alibaba revealed net income rose 75% to RMB140 billion (USD20 billion) in the year ending March 31 2020.
Alibaba’s new targets follow the successful achievement of USD1 trillion in GMV in the year ending March 2020, a goal set five years ago. Its plan to capture 2 billion global customers comes as it ramps up its international capabilities, with AliExpress opening new direct flights from China to Russia, AliExpress in Spain offering logistics services to 3P sellers and Alibaba-backed Zomato in India branching out into alcohol sales. Alibaba has also unveiled a series of initiatives to support traders in cross border commerce, increasingly enabling Chinese sellers to access broader Asian and Western markets.
As the group attracts new shoppers, expands its operations into new markets and drives support measures to its seller base, CPGs not already doing so should allocate resources to explore Alibaba as a key route to market in China and increasingly globally. Brands should also monitor technological developments around logistics, picking and delivery that are likely to shape future ecommerce development in the US and Europe as Alibaba expands its capabilities internationally.
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