Tmall Announces Global Free Delivery Promotion
What does Nov 11th mean to you? For Chinese, this is a day (Double 11 Shopping Festival) for shopping spree. Tmall(Company Alibaba’s platform), China’s biggest online shopping mall is going to deliver goods from the other countries for free.
Global free delivery promotion is a significant strategy for Alibaba to develop business abroad after its historic New York IPO (initial public offering). President of Tmall, Wang Yulei has said that, “ The first step to go global is to make everyone able to buy things from Britain, Germany, United States or Japan at home.”
In my opinion, IPO enables Tmall to promote this practice. Thanks to IPO, Tmall is able to have cheaper access to capital and create multiple financing opportunities, which make it possible to generate profit by shipping freely.
In other aspect, it is wise for Alibaba to make up this decision because it seems that Alibaba may inspire more people to shop online. I think, in the future, Alibaba may be able to deliver goods for students abroad for free as well, which I think is going to be a win-win strategy. As far as I know, there are more and more Chinese students studying abroad at present and they have need to shop on a Chinese shopping website to buy something which cannot be found abroad and with a cheaper price. If Alibaba is going to do so, Chinese students abroad are able to benefit a lot. Alibaba, on the other hand, is going to have an extra large customer segment.
It is good news to see that Tmall has walked forward the step. I am looking forward to the change that Alibaba will make in the future.
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