Aliexpress, the Chinese giant that shakes up e-commerce

Among the e-commerce giants Aliexpress belonging to the Alibaba group stands out as one of the leaders. Indeed, in a few years, Chinese e-commerce has taken its place alongside Amazon or Ebay. A power that continues to grow thanks to its unique offer, its positioning, its international presence and its new services for consumers.

Aliexpress, the success of the Alibaba Group

The Aliexpress website is a subsidiary of the Alibaba Group. Indeed, behind the site, there is the Alibaba group that was born in China in 1999 in the apartment of Jack Ma, a modest professor. It was during a trip to the United States that he realized the potential of the Internet. With the help of a friend, they decide to create a page for his translation agency. The success is great since in just eight hours the two friends receive more than 5,000 emails.

Thus, several years later, in 2010, Aliexpress was born. The site specializes in the sale of Chinese products at low prices. On the latter, Internet users can find what they need thanks to the huge catalog of products presented. Indeed, there are also high-tech products, clothing, accessories, furniture or decoration (1).

Initially intended for the Chinese market,the platform has expanded internationally thanks to its rapid development. It is in France that the platform has met one of its greatest successes. The sellers present on the platform are mainly Chinese companies and purchases are made without intermediaries. As a result, buying on the site has a great advantage since the purchase is made directly with the seller. This allows shoppers to pay for products, often unpublished, cheaper than in stores or on another marketplace.

It is also a way for foreign sellers to enter the Chinese market.

Aliexpress at the heart of the group’s excellent results during the health crisis

In the second half of 2020, the Alibaba Group generated a turnover of 14.7 billion euros. In other words, an increase of 22% compared to the previous year. It seems that even the health situation cannot prevent the success of the group, which has been able to reap the benefits of the closure of physical shops (2).

Just for Singles’ Day (the Chinese equivalent of Black Friday) in November 2020, Alibaba Group’s sales exploded. Indeed, the turnover generated by this event amounted to 30.8 billion in 2018. This was already 37% more than in 2017. Then, to $38.4 billion in 2019. In 2020, Alibaba far surpasses its previous records with $74.1 billion, nearly doubling its previous turnover. (3)

Thus, at the end of 2020, the Chinese giant saw its turnover climb well beyond expectations. It went from 21.45 billion yuan in net profit in 2019, to 79.43 billion yuan, or 12.17 billion U.S. dollars. Overall, revenue increased by 37%. E-commerce alone benefited from a 38% increase in sales. But it’s the cloud that shows the best results. Thus, the turnover related to this activity increased by 50% to reach 16.115 billion yuan. (4)

aliexpress cart ecommerce purchase
With its ephemeral shop system Aliexpress offers its customers a more human dimension of the marketplace and improves its sympathy capital

A new way of thinking about e-commerce

The success of Aliexpress can be explained by its huge catalogue and attractive prices. But the group does not stop in such a good way and continues to develop services to customers. It thus makes its offer more humane and even more attractive. Last September, we saw the opening for the first time of an Aliexpress pop-up shop in Paris. It has introduced more than 300 fashion and decoration products.

Arranged on two levels, this space is entirely designed to offer an optimal customer experience. Indeed, arranged like a house, with a lounge, a garden, a lounge bar, a terrace or a juice bar, the place is immersive and allows visitors to project themselves.

On the other hand, for purchases, everything happens on the site. Visitors must place an order with the seller directly from the platform. Thanks to partnerships with delivery services, such as La Poste or Relais Colis, products are delivered to them within ten days (5).

With its ephemeral shop system Aliexpress offers its customers a more human dimension of the marketplace and improves its sympathy capital.

Give interactivity to the purchasing process

In addition, the group is trying to develop a new sales channel, the livestream. By following the principle of teleshopping, Aliexpress recruits influencers to achieve real performance, while presenting brands and products. Particularly appreciated during confinement, this kind of modern TV shopping allows to give interaction to purchases. Indeed, it generates a direct exchange with influencers through a chat. In addition, this method facilitates and speeds up the buying process by sending viewers directly to the platform.

Thus, the Alibaba group is enjoying great success that does not seem to stop. Thanks to its offer and operation, the platform has been able to develop in international markets. By offering an almost infinite choice of products of all kinds, at low prices and without intermediaries, it has been able to meet a consumer need. Previously present only online, the Chinese e-commerce giant could probably seem little present to its consumers. At least, not very tangible, not very concrete. Today, the group seems to want to improve its sympathy capital by giving a more human dimension to its offer by integrating pop-up shops and livestreams of live influencers.

Offer an ever more comfortable user experience

In the same way as Amazon’s lockers, Aliexpress unveils its lockers on the territory. Indeed, the first lockers of the Chinese giant emerge in the capital thanks to the Cainiaio network. This is the logistics service of the Alibaba Group that owns Aliexpress. The group’s goal is to install no less than 650 lockers by the end of the year. The latter aim to improve the shopping experience of consumers in the territory. The delivery of Aliexpress parcels can thus gain in fluidity with a new delivery method.

For consumers, it is also an advantage when they cannot receive their package at home. The locker solution allows greater flexibility in the organization of people. They can freely decide to pick up their package when they have the opportunity, for example after work. On the other hand, this solution responds to current health challenges. This is a solution that does not involve contact between users and delivery people, so it ensures that barrier gestures are maintained and is not negligible. For the moment available in Paris, lockers will gradually emerge in other major cities of the territory such as Bordeaux or Lille.

Sources

  1. A little story of Jack Ma, Alibaba and AliExpress “
  2. “Alibaba: strong increase in revenue with a surge in revenue from the cloud” – Clubic.com
  3. “Singles Day: Discover the record numbers of Alibaba’s double 11”, LSA Conso,article of November 12, 2020
  4. Press Releases, Alibaba Group
  5. “Aliexpresse arrives in Paris with an ephemeral shop”, Caroline J, article of September 16, 2020 – Sortiraparis.com
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