Alibaba Group Holding Limited has established its presence in Chinese villages to ensure that villagers do online shopping through its marketplaces
A villager living in a far-fling rural area in China needs fertilizers, tractor for farming or pesticides. Heck he might need a 65 inch TV. So what would he do?. In a large number of villages located across rural regions of China, he visits Alibaba kiosk which has been connected to the web free of charge on a computer provided by the Hangzhou based E-commerce company, and orders.
And if he has never placed an order online in the past, an Alibaba service center manager who hails from the same locality is probably with him. One policy the online retailer has followed for stemming down the impact of that slowdown is to ensure that every one of the 1.3 billion people living in China purchase online.Recently, Alibaba stated its profits increased by over 100% and sales boosted by around 33.33% throughout its most recent quarter, beating estimations made by analysts.
It has struck success in the investor’s face who is skeptic towards the company and China generally, one that’s suggesting a possible counterbalance to the gloom that is hovering around the economy of China: the Chinese consumerism’s persistent strength.
At the same moment, most of the power still needs to be tapped. In the Singles Day held in 2015, the day invented by the company as a customer holiday akin, the organization succeeded in generating $5 billion in terms of sales in one and half hour. But still the enterprise found out that rural localities only contributed $45 million during the whole day .
That is despite of the fact the rural population of China still includes 600 million Chinese citizens- around 2 times greater than the total population of the United States. And most of those Chinese citizens are still not shopping across the internet.
China Internet Network Information Center has revealed that in 2014, Chinese rural online buyers, increased by 41% on an yearly basis to 77 million, which is just a small proportion of the lucrative market.
In last year’s first quarter, less than 10% of the orders placed on Alibaba got delivered to rural regions, the company stated. And the organization knows that, In Oct 2014, Alibaba announced an investment of $1.6 billion would be done in the upcoming three to five years for setting up 100,000 rural service centers across the countryside of the country.
Up till now, it is present in over 12,000 villages, It’s online trading outposts have been equipped with free computers and Internet service. The centers are also giving villagers an area for picking up the items purchased by them online from the company.
Some villagers could even employ them for setting up their online enterprises- for example selling garments manufactured by factories nearby on Taobao marketplace of Alibaba.
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