Three measures to promote the transformation of Alibaba

the media today published article that Alibaba last year significant adjustment of business pricing model, to improve market penetration. But in addition, Alibaba also through other three important initiatives to promote the transformation of the site, which is worthy of attention in the next year investors.

below is the full text of the article:

Alibaba group’s Alibaba network last year, a significant change in its business model, a substantial reduction in the membership fee charged by Chinese exporters, in order to obtain a higher market penetration. This initiative has achieved results, the total number of Alibaba paid members of the growth.

Then the pricing model of

Alibaba has taken a series of other changes, including the "gold supplier membership" to expand the scope of Chinese market suppliers outside (they had paid membership fee is lower than the China company, but enjoy less service). In addition to hoping to get more paid members, Alibaba also hope to take more revenue through value-added services, such as the sale of the buyer’s search results in keywords.

investors may want to see how the Alibaba is a model of the nature of this adjustment into revenue growth. However, investors should pay attention to the next few years the effectiveness of several other initiatives in Alibaba.

India: market Alibaba CEO Wei Zhe has been talk openly about cooperation plan in India, cooperation may be similar to the agreed with Softbank in Japan market agreement. Alibaba holds a 32% stake in its Japanese web site, but the site specific operations by Softbank responsible. Alibaba did not disclose the situation on the India cooperation plan, only to disclose the partnership may have to work together, such as Infomedia 18. This program is worthy of investor attention, because the same as the Chinese market, the India market also has a huge user base for both buyers and sellers. Alibaba June data, the India market accounted for 12% of the registered users of the international market of Alibaba. Alibaba did not disclose the specific data of the Japanese website.

AliExpress: Alibaba has been testing this product since the last quarter. This product makes online transactions can be paid by alipay. So far, Alibaba is responsible for matching buyers and sellers, but does not provide online transactions to promote services, so AliExpress is an important milestone in the development of Alibaba. The concern is that whether the Alibaba will turn to the transaction based business model, because this model is completely different from the current charge prepaid membership fees; both buyers and sellers in the transaction scale, Alibaba are currently only charge a fixed fee. In addition, Alibaba is also facing the Dunhuang network and other competitors, Dunhuang network can be paid online, according to the popularity and relevance to provide keywords search results. Dunhuang network does not charge membership fees.

international expansion: in addition to spending $30 million in the U.S. market for advertising to attract more

Leave a Reply

Your email address will not be published. Required fields are marked *