Introduction (Avoid if you know what Alibaba is)
Alibaba Group Holding Limited is a Chinese-American e-commerce company that provides consumer-to-consumer, B2C and B2B sales services via web portals.
It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a B2B portal to connect Chinese manufacturers with overseas buyers.
Now, it is the world’s largest retailer as of April 2016 surpassing Amazon and Walmart, with operations in over 190 countries.
The main activity of Alibaba
Some years before, Alibaba and Aliexpress were exporting products from China to Europe. On their webpages you can buy everything that you want at a really cheap price (also less than a 1€)
The new activity
Now, Alibaba in order to get profit from its network and its transport, Alibaba starts to export products from Europe to China.
What are the advantages of China?
- China is the biggest country of the world (1300 million of habitants almost the double of the whole Europe)
- First world economic power (PPP of 23,194.411 billion dollars more than the whole European Union).
- Chinese people loves european products and especially spanish products like wines and hams.
What are the advantages of Alibaba?
- Avoid language barrier.
- Reduce initial costs of expansion.
- A logistic operator that integrates a system of customs management and tracking of order.
- Own payment method.
- Marketing services.