Alibaba is all set to acquire Kaola from NetEase for a whopping $2 billion. Kaola is a seller of imported products in China this includes sports accessories, clothes, and consumer electronics. The company is deemed to be one of the biggest e-commerce companies in China and now it is focused to sell JD.com’s JD worldwide, imported goods, and Tmall Global of Alibaba. Even after the acquisition, Alibaba wants Koala to remain operating independently with a new leader at helm. General Manager of Tmall Import and Export, Alvin Liu was named as the new CEO. Massive market presence in the cross-border e-commerce sector for Alibaba is well assured with Tmall Global and Kaola.
China is one among the largest e-commerce markets, a research firm called eMarketer recently made a prediction in its June report that, china will have $1.935 trillion in e-sales. The predicted value is three times more than in the US. Daniel Zhang, CEO of Alibaba Group, made a statement that the company is very sure about China’s import e-commerce market and it has great growth potential, furthermore, he also stated that the company would enhance the experience and import services for its customers in China.
Alibaba’s core commerce business includes Taobao and Tmall shopping platforms, and its cloud division also contributed significantly to growth. Alibaba owned retail market places in china has an active customer base of 674 million, most of the new consumers belonged to less developed cities. The company also said that Alibaba along with Yunfeng will invest $700 million in NetEase Cloud Music, a music streaming service of NetEase.