Ali Investment Is Ready To Launch Retail Business In The US

Jet.com currently has an estimated value of about $600 million, and its ambition is to get 1 million paid users before the end of 2015, and get 15 million users in 5 years, achieving 20 billion US dollars in annual volume by 2020. At present, the website provides about 5 million products for trial operation. The company plans to increase the total number of goods on the website to 10 million when it is officially released in mid June.

Jet official website now shows that slogan is "The shopping club made brilliant.". Specifically, how to make consumers play smart shopping, Jet has launched three major functions:

First of all, membership system. After a 90 day free trial period, a membership fee of $50 a year is required to continue shopping on Jet. As a member's return, Jet says its website price will eventually be 10% to 15% cheaper than any other electricity supplier, and consumers will spend about $150 a year on Jet. Jet says its profits come mainly from membership fees rather than the Commission of every spanaction.

Next is the dynamic pricing system. To put it simply, Jet will give consumers preferential prices when choosing a combination commodity purchase, choosing flexible logistics distribution and payment methods. (see above) and these concessions are based on the fact that Jet does not build warehouses on a large scale like Amazon, and all retailers will become their inventory sub stations. Jet's royalty from retailers will be returned to users to ensure low price of website products.

Finally, in order to extend Jet's antennae to more places, Jet has launched a lighter way of cooperation, "Jet Anywhere". Users can get JetCash equivalent to 20%-30% of consumption amount when shopping on other e-commerce sites, and JetCash is, of course, used to buy things on Jet.

From the perspective of Alibaba, on the one hand, Ali has taken the lead in the investment in North America. In addition, according to 36 krypton, Ali's investment in the North American market basically follows two principles: the company can rapidly launch business in the Chinese market; Ali will not directly acquire large quantities of retail customers in North America. On the contrary, Jet, an electric business born for sniping Amazon, has enough ambition and platform mode. Ali can quickly contact a large number of local retailers through investing in Jet, whether from the perspective of pattern or resource exchange, it is wise choice.

In addition, Ali After the listing, the internationalization has been very fast, which has made Amazon feel pressure. On the one hand, it constantly introduces foreign brands and retailers and accelerates the internationalization of supply chain. For example, in November last year, we entered the Tmall international Costco, and the memorandum signed by the governor of Europe after the European tour, the "Marco Polo plan". On the other hand, we laid out the logistics and payment infrastructure continuously, and pave the way for foreign goods to enter the Chinese market. In the context of further escalation of consumption in the Chinese market, Ali is passing Alibaba.com on Ali's B2B platform. China Merchandise sold to international market At the same time, it is also conveying the consumption power of the Chinese market.

In terms of payment, Alibaba and Alipay have customized ePass payment solutions for US businesses. It is reported that Ali has signed trial agreements with department stores Neiman, Saks, Macy's Inc Inc and its Bloomingdale department store chain, Ann Taylor, fashion boutique website Gilt, and clothing brand Aeropostale, which is responsible for handling payment and logistics links.

The 11 Main, which was launched in June last year, represents a new direction, although it is generally evaluated among American consumers. 11 Main is currently only open to people invited to participate in beta testing. It divestiture the Vendio of Auctiva and Vendio of online retail management company acquired by Alibaba in 2010, providing a relatively low price, niche market oriented platform for local businesses to sell special products that would have been buried in millions of products of Amazon and eBay.

On the one hand, Ali took the initiative to attack. On the other hand, foreign retailers were wasting their time in China. In 2012, Home Depot Inc decided to close all seven stores in China. Last December, best buy BestBuy said it would sell its troubled Chinese business. In the United States, Amazon, which is equivalent to the word "electricity supplier", has been doing very well in China. It has handed over the "direct picking" business to Tmall and has been stationed in Tmall store directly.

But then again, though Jet is aggressive, the new business model has not yet been verified by the market. How much chemical reaction can Ali and Jet have?

People familiar with Alibaba's investment strategy (such as Michael Zeisser, former Liberty Media Executive), said that investing in US companies can directly understand the trend of Silicon Valley, and can also establish cooperation with American start-ups, such as Ali's ShopRunner cooperation with investors, and directly sell us brand products to Chinese consumers.