Alibaba Expands Partnership with SingPost

Chinese e-commerce giant Alibaba Group Holding said it will invest an additional S$279 million (US$206 million) in Singapore Post, increasing its total stake in the country's national postal service provider to 14.51%. In 2014, the Chinese e-commerce group bought a 10.23% stake, becoming the second largest shareholder after Singapore Telecommunications.

SingPost's proposed e-commerce logistics hub in Singapore  / credit: SingPost
SingPost's proposed e-commerce logistics hub in Singapore / credit: SingPost

Under the terms of the contract, Alibaba will acquire an additional 5% stake in SingPost for S$187 million and invest up to S$92 million to acquire a 34% stake in a SingPost's subsidiary Quantium Solutions International. The latter provides end-to-end e-commerce logistics and fulfillment services in more than 10 countries in the Asia-Pacific region. SingPost will hold the remaining 66% of the shares in Quantium Solutions.
A statement said that Quantium Solutions will reorganise its business to become the joint venture of Alibaba and SingPost, aiming to expand its e-commerce logistics infrastructure and services.

Cross-border online shopping will go through the roof
Alibaba has been aggressively courting businesses outside the mainland in order to promote cross-border e-commerce and reduce relatively high shipping costs, lengthy delivery times and complications in getting orders through customs.
according to a recent report from Accenture and AliResearch, Alibaba’s research arm, cross-border online shopping will see compound annual growth of 27% over the next five years, double the rate of worldwide B2C shopping as a whole.
In a related development, Alibaba has announced an expansion of its cross-border e-commerce initiatives, including the launch of 11 official country pavilions on its Tmall Global platform, as well as cooperative partnerships between Juhuasuan, Alibaba’s group-buying platform, and 26 foreign embassies in China.

Juhuasuan signs marketing and promo agreements with 26 countries
The countries that will be featured on Tmall Global, an extension of Tmall.com, China’s largest third-party B2C platform for brands and retailers, will include the U.S., New Zealand, Australia, Switzerland, France, Britain, Spain, Singapore, Thailand, Malaysia and Turkey. The country pavilions are aimed at providing Chinese consumers with a one-stop shop for popular products from a particular country and other travel and cultural information.
As for the cooperative partnerships, Juhuasuan has reached agreements with embassies of 26 countries to collaborate on marketing and promotion of those countries’ products on the Juhuasuan platform. The countries involved are the U.S., Canada, Russia, New Zealand, South Korea, Japan, Italy, Australia, Thailand, Bulgaria, Ukraine, Greece, Mexico, Singapore, Finland, Indonesia, Norway, the Czech Republic, Slovakia, Costa Rica, Brazil, Chile, Nepal, Israel, South Africa, and Malaysia.

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