Alibaba in China

Alibaba, the king of e-commerce and Haier, known for its electronic appliances, got together to recreate a new and technical logistic, distribution and installation joint venture. The deal will solidify the companies’ relationship

Alibaba and Haier’s project is aimed at creating a logistics and service network all around China that will deliver and assemble household appliances and other large items.

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This has been done jointly to engage a profitable partnership wherein Alibaba has invested in Hong Kong $ 2.8 billion ($364 million) with a 2% of the market stake for Haier. The logistic and delivery subsidiary of Haier  has also 9.9% of the market shares. Haier which is a giant of electronic in China has tens of thousands of stores spread all around the country that also includes several service centers too.

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A big development

 

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Haier has a logistic and delivery company called Goodaymart which possess 90 centers of distribution all over China. The company also has nine bases in the country.

What said Jack Ma?

Jack Ma, the founder of Alibaba, and its former CEO emphasizes on a major weakness in the e-commerce market of China which is the logistics. He mentioned that they have to take care of this problem to continue the activities.  It is hoped that the merger between Alibaba, Haier and their extensive social network will help to improve the logistics of the trade.

It was only in 2012 that they launched together a Smartphone that was very affordable for the market in China. This Smartphone was created using the Aliyun operating system which has been created by Alibaba. This was a company that has triggered their collaboration and eventually brought the two giants in their respective fields to strengthen their collaboration and create a brand in the e-commerce business. The objective is to face with the competition that might emerge at any time.

More information about Ecommerce in China here and here.