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Alibaba Group to Enter in Indian E-commerce Industry

With Alibaba’s invasion, a stiff competition may prevail in the e-commerce industry; however, the Chinese company denies this and proclaims to not give competition to the existing players.
BY Jaspreet Kaur
Feature Writer, BusinessEx
Sep 07,2019

The Indian e-commerce industry will shortly see the arrival of another foreign player. Chinese conglomerate company, Alibaba Group has lately proclaimed that it will be foraying in the Indian e-commerce market.

Alibaba Group will be entering the e-commerce market via its popular application, UCWeb Browser app, according to a media report.

According to the media reports, Alibaba would also offer online ticket booking services to the consumers, in turn, will directly compete with an e-commerce payment app, Paytm and online ticket booking company, BookMyShow.

Alibaba does not Want to Compete with Existing E-commerce Players

With Alibabas invasion, a stiff competition may prevail in the e-commerce industry. However, the Chinese company denies this and proclaims to not give competition to the existing players, as reported by the daily news, Tech Crunch.

The firm plans to build an e-commerce service around content platforms in India. It has no intention to compete with existing e-commerce businesses in the country, and Alibaba Group is not overseeing the development of the service, the Spokesperson of UCWeb told the daily news.

The new service is in line with our strategy to enrich the experience for users and clients alike, Spokesperson added.

UCWeb, which is highly renowned for its mobile browser application, UC Browser, will be employing its Indian users to construct the e-commerce project of Alibaba.

At present, 430 million users utilize UC Browser across the globe, out of which Indian consumers amount to be 130 million.

Over the period, Alibaba is actively engaged in shoring up the Indian startup ecosystem. However, the Chinese company has not made its direct presence into any of the niches till now.

Alibaba Group Reinforcing Indian Startup Ecosystem

The conglomerate company has made a large chunk of capital infusions in Indian startups in the past. Recently, the company had infused $100 million in VMate, an application released by UCWeb. VMate, which is a short video application, was launched to foray into the social video niche of India.

Apart from this, the Chinese company has made investments in Zomato, BigBasket, Xpressbees, and Snapdeal.

According to the daily news, Inc42, the present move has been taken following Alibaba halted its investments in India and reconsider its strategy for the country. The company is disappointed witnessing financial losses of Snapdeal and Paytm Mall in the present financial year.

Chinese Company, Alibaba Increased its Offerings to Entice Indian Consumers

In the present time, UC Browser offers a large count of applications to the users and in turn, enhances the mobile browsing experience. The company claims to work with more than 120,000 bloggers and over 700 media outlets to generate content, which it offers to UC Browser users.

The firm would partner with existing players for its upcoming e-commerce service. Alibaba owns about 30 per cent of payments and e-commerce firm Paytm, Vice President of UCWeb Global Business, Huaiyuan Yang told PTI

We have Alibabas e-commerce gene in us. We are trying to start an innovative business model related to e-commerce, he told PTI.

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