Alibaba's AliExpress is taking the field with a new weapon in its fight to dominate global sales of affordable goods: soccer legend David Beckham. This strategic move comes as AliExpress aims to catch up with its aggressive competitor, PDD Holdings' Temu.
AliExpress Ups Its Game
Alibaba, traditionally focused on the domestic Chinese market, is now aggressively expanding internationally. Its international division, including AliExpress, is its fastest-growing segment, with revenues soaring 45% year-over-year.
This international push includes a sponsorship deal with the UEFA Euro 2024 tournament and a new advertising campaign featuring Beckham. The campaign, aligned with the Euros, encourages consumers to "score more with AliExpress."
Temu's Super Bowl Blitz
This move by AliExpress follows a similar strategy employed by PDD Holdings' Temu, which aired commercials during the Super Bowl, urging viewers to "shop like a billionaire." According to Apptopia, Temu's app downloads surged significantly after the Super Bowl.
Football Fans: A Target Audience
Both Temu and AliExpress are focusing on football (soccer) fans for a reason. According to Humphrey Ho of Hylink Digital, these fans often share similar demographics, including being price-conscious and inflation-impacted consumers.
Alibaba's Long Road
While Alibaba has long envisioned a global presence, founder Jack Ma's 2017 goal of serving 2 billion global consumers by 2036 has faced challenges. Analysts point to execution issues as a key hurdle, particularly when compared to Temu's more aggressive approach.
Temu's Meteoric Rise
Launched in 2022, Temu has quickly gained traction, offering products like $5 earbuds and $10 dresses to over 60 markets. Estimates suggest Temu generated $18 billion in revenue in 2023.
AliExpress Fights Back
To compete with Temu, AliExpress is leveraging its strengths. This includes offering five-day delivery windows in select markets, backed by its established global logistics infrastructure. The recent buyback of its logistics arm, Cainiao, is expected to further solidify this advantage.
Related: https://www.meowdini.news/post/china-s-consumer-prices-rise-signaling-potential-demand-recovery
The Future of Cross-Border E-commerce
Alibaba's renewed focus on AliExpress, fueled by the competitive landscape, is reshaping the landscape of cross-border e-commerce from China. Analysts believe AliExpress needs to find ways to differentiate itself from Temu to capture market share.
Source: Reuters
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