English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese
malaysia-and-alibaba-to-build-digital-trade-platformKUALA LUMPUR: March 23, 2017. Alibaba is to partner with the state-run Malaysia Digital Economy Corporation (MDEC) to host what...
ai-becomes-truckload-matchmakerHAMBURG: March 24, 2017. As PwC releases a report suggesting 950,000 jobs will be lost in the UK transport sector from the use of...
new-ocean-carrier-alliances-to-shake-things-upGENEVA/BRUSSELS: March 22, 2017. The impending operation of three ocean box alliances on April 01 has prompted fears of capacity...
volga-dnepr-paid-former-u-s-national-security-advisorWASHINGTON, DC: March 20, 2017. As Congressional hearings begin on possible connections between the Trump presidential election bid...
lufthansa-group-reports-rise-in-net-profitFRANKFURT: March 16, 2017. The Lufthansa Group has reported a 4.6 rise in net profit to €1.77 billion in 2016 on a 1.2 percent drop in...
another-airline-level-for-iagBARCELONA: March 17, 2017. International Airlines Group (IAG) will begin flights from Barcelona to Los Angeles, Oakland, Punta Cana in...

Alibaba key to China's new consumer-led economy?

August 28,2015: As stock markets in China continue to roil locally and reverberate globally, observers have been speculating whether the central government can solve the current upheaval by migrating successfully from an investment to consumer-led economy.

Coincidentally, the day before Beijing devalued its currency on August 11, the Alibaba Group announced it would spend US$4.63 billion for a 19.99 percent stake in Suning, one of China's largest consumer electronics chains, to develop what it describes as the "on-demand economy".

According to Alibaba, the on-demand economy, or 'O2O e-commerce', is geared to deliver greater convenience to consumers by marrying mobile Internet technology with traditional brick-and-mortar stores.

Currently Suning's logistics network covers over 90 percent of China via eight national and 57 regional distribution centers, 353 city forwarding centers and over 1,700 last-mile delivery stations. Now, as part of the partnership, Suning will work with Cainiao, Alibaba's logistics affiliate, to ensure delivery of future customer orders in just two hours.

Jack Ma, Alibaba executive chairman comments: "Over the past two decades, e-commerce has become an inextricable part of the lives of Chinese consumers, and this new alliance brings forth a new commerce model that fully integrates online and offline."

"This alliance will benefit consumers and merchants by cultivating an open and transparent integrated ecosystem that will be the backbone of the future economy," he adds.

Sounds like the government's migration plan has already begun.

- Simon Keeble is the editor of freightweek

- powered by Quickchilli.com -