AliExpress Goes Big With Subsidies to Counter E-commerce Rivals and Propel Chinese Brands Globally

Alibaba Group Holding’s international e-commerce powerhouse, AliExpress, is making a splash with a new campaign dubbed “10 billion yuan of subsidies.” This initiative, reflecting a common mainland marketing tactic that signifies substantial online allocations, aims to supercharge Chinese exports by enticing a wave of domestic brands and merchants to set up shop overseas.

The move comes at a crucial time for Alibaba, as the e-commerce giant grapples with intensifying competition from homegrown players like PDD Holdings’ Temu and fashion leader Shein. Both companies have been rapidly gaining ground in the international market, particularly among younger demographics.

According to a statement released by AliExpress on Monday, the initial phase of the subsidy program will target 1,000 Chinese brands and merchants. This includes existing vendors on Alibaba’s well-established domestic platform, Tmall. While specific subsidy amounts haven’t been revealed, AliExpress promises a comprehensive package of benefits to incentivize participation.

Participating brands and merchants can expect a boost in online traffic through AliExpress’s marketing muscle. Additionally, they’ll gain access to preferential delivery services facilitated by Alibaba’s robust Cainiao Smart Logistics Network. But the program’s reach extends beyond AliExpress itself. Participants will be equipped to expand their footprint across Alibaba’s other international e-commerce ventures, including Lazada in Southeast Asia, Miravia in Spain, Trendyol in Turkey, and Daraz in South Asia.

This strategic subsidy program underscores Alibaba’s commitment to solidifying its position as a global e-commerce leader. By empowering Chinese brands to navigate international markets and capture a larger share of global consumers, AliExpress hopes to not only counter the rising threat of domestic competitors but also propel Chinese exports to new heights. Analysts predict the program will be closely watched by industry insiders, with the potential to significantly reshape the global e-commerce landscape.

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