Alibaba.com Bullish On India Market – Looks For JV & Sets No Upper Limit On Investments
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There is so much hoopla in B2B industry as Indian B2B players are busy with tieups & launching separate sections for China. On the other hand, Alibaba – a global player who is spreading its wings in India.
Recently, Mr David Wei, CEO of Alibaba has shared his plans for investment in India in a press conference in China. Alibaba is majorly focusing on four countries — China, the US, Japan and India. They have made it clear that they have no limits for investment in India and they will continue to make more joint ventures to penetrate Indian SME market. Alibaba has made a phase-wise plan to expand itself in India. First step is to facilitate Indian exporters to sell their products globally, next is to build an online payment function and thereafter other services. They are focusing more on textile & jewellery market as Indian textile & jewellery has huge demand in the export market.
Take a look at some interesting figures about Alibaba’s penetration in India:
- Alibaba has crossed the benchmark of 1 million registered members.
- More than 40,000 Indian SMEs registering on Alibaba every month, around 5 lac in a year which is close to IndiaMART’s client base.
- Online registration of Indian SMEs on Alibaba has been doubled in a year.
- India has 11% share on Alibaba’s registered user base.
- Paid membership has been grosed by 212% in a year.
However, Infrastructure & broadband penetration is hampering the path of Alibaba success. More important is, they are not spending money on advertisement, marketing, etc. But they are spending a huge amount (i.e. 50% of its revenue) on training, service center development and making the bridge of Alibaba success stories to reach at top.
Another News from Alibaba’s camp is that, Yahoo has sold its 1% stake in Alibaba for around 150 million dollars. Yahoo has sold 57.48 million shares in Alibaba.com for 19.80-20.30 Hong Kong dollars (2.54-2.60 US dollars) each, at a discount of 4.0 to 6.4 percent on its closing price of 21.15 Hong Kong dollars on 14 Sep 09. Yahoo is saying that they have sold its stake because the value of its investment had “increased substantially” and it will continue to maintain 40 percent interest in Alibaba Group.
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