Chinese E-commerce Giant, Alibaba is gearing up its hold on Indian e-commerce landscape as it now is strategising itself to build its online marketplace business in the country.
Alibaba’s executive and vice-chairman, Joseph Tsai informed in his media interaction that company is now increasing its focus on high-frequency use cases like online payment realising its importance in boosting gross merchandise value (GMV).
While referring to Alibaba’s investment in BigBasket and Paytm Tsai said, “We are taking a patient approach. Looking at frequency use cases, like payments, and building an e-commerce business on top of that.” Interestingly, this is the very first time when Alibaba executive has come forward with its Indian strategy in detail.
The Chinese retailing firm along with its payment affiliate owns 40% stake in Paytm’s parent company One97 Communications. Tsai said, “The app (Paytm) is no longer just a payment tool. It’s your portal to access other services that require payment, like buying movie tickets, train tickets, a gold fund for investments. So, with all these use cases, you are creating high-level engagement.”
However, in spite of company’s investment in Paytm mall, Tsai believes that Indian e-commerce market is still rudimentary especially when compared to China. Coming to stats, GMV for Indian e-commerce industry is expected to be less than $20 Billion, while that for the Chinese market is close to $1 trillion, where the majority of prominent players are focused on selling electronics where the frequency of purchases is low.
According to a report by Citi Research, Indian e-commerce industry is booming, at a current valuation of $30 billion, it is expected to reach $202 billion by 2028. Hence, a lot can change by then especially in the context of today where 70% Indian e-commerce market is divided between Amazon and Flipkart.
Nevertheless, Alibaba coming with a news that it is pushing to change its strategy in India definitely instil a lot of positivity for Indian e-commerce buyers.