Dive Brief:
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Alibaba Group’s new CEO, Daniel Zhang, said in a speech in China Thursday that the company will be making investments and assembling teams in an effort to expand globally. “We must absolutely globalize,” Zhang said in a speech, according to a post Thursday on Alibaba’s e-commerce news and commentary website, Alizila.
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So far the company’s revenue comes largely from its China ventures, including its marketplaces, where it dominates in the country, but also where it's seeing diminishing returns as it reaches its limits there.
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But even before its IPO Alibaba has been investing heavily in U.S and other companies globally. Most recently, the company raised its stake in U.S. flash-sales site Zulily.
Dive Insight:
Retailers, you’ve been warned. Alibaba group is on the warpath, in terms of its ambitions to expand, and will be aiming in particular for the U.S. market. Of course, that is good news for some retailers, too, who may have opportunities to sell through Alibaba’s marketplaces.
Still, selling to U.S. consumers hasn’t been Alibaba’s strength so far. Alibaba’s first venture here (aside from investments its made in a range of U.S. startups and other businesses), 11 Main, for example, has gained little traction. It’s difficult to imagine U.S. shoppers moving from Amazon or eBay to Alibaba at the moment, especially if the Chinese giant continues to struggle with counterfeit goods on its sites.