Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) is intensifying its efforts to expand globally, competing with rapidly growing platforms like Shein and PDD Holdings Inc (NASDAQ:PDD) Temu.
The company's cross-border wholesale platform, Alibaba.com, with over 150 million registered members, has launched its first "digital trade service base" in Shanghai.
The company enhanced its platform with an AI tool that automates item listing and customer service, increasing seller exposure by approximately 19%.
Additionally, Alibaba has initiated a dedicated cargo flight between Shenzhen and Mexico City through its logistics unit Cainiao and AliExpress.
This service promises delivery to Mexican buyers within ten days of ordering.
In Southeast Asia, Alibaba is further boosting its presence by investing $634 million in Lazada, a leading online marketplace it acquired in 2016.
This investment is part of Alibaba's strategy to bridge Chinese merchants with overseas consumers, which has seen a total investment of around $7.4 billion in Lazada since its acquisition.
Alibaba's international operations witnessed a 53% revenue growth in the third quarter, outpacing domestic demand.
This expansion comes amid heightened competition to attract Chinese merchants. Amazon.com Inc (NASDAQ: AMZN) recently announced initiatives, including an innovation center in Shenzhen, to assist sellers in brand building and digitalization and has expanded its reach to include Brazil.
ByteDance's TikTok is also investing heavily in Southeast Asia, with a significant investment in Indonesia's GoTo Gojek Tokopedia, the largest e-commerce platform in the country.
The overseas e-commerce market is becoming increasingly competitive for Chinese operators, as evidenced by the success of platforms like Temu and Shein.
Price Action: BABA shares traded lower by 0.60% at $74.06 premarket on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.