Be very careful Amazon! Alibaba bought a luxury ecommerce

• For 2018, according to Statista, Amazon recorded $ 232.8 billion in global net sales

• Alibaba, meanwhile, generated 35 thousand 170 million dollars in sales during the same period

• Ecommerce, by the end of 2019, will have constituted 13.7 percent of all global sales

Inside of the ecommerce, the competition is fierce. On the one hand, digital tools allow small businesses access a global market, rivaling market leaders. At the same time, the companies they are worried because its brands disappear from the minds of consumers due to the relevance of platforms such as Amazon and Alibaba. In addition, the rivalry between the latter two is reaching a point of maximum pressure.

But leaving aside these complexities, the ecommerce It has enormous future potential. In accordance with Statist, this industry is expected to reach a value of three thousand 535 million dollars (mdd) by the end of the year. Only four years later, it is projected to almost double the figure to reach $ 6,442 million. To that we must add that, according to Oberlo, there will be more than 1,920 million digital buyers across the planet by the end of this year.

Thus, it is crucial that the different companies and brands involved in the ecommerce Have a strategic growth of your operations. In this sense, there is a segment of the market that seems to be particularly attractive. In accordance with Kinsta, the category of luxury products was one of the fastest growing in Amazon in 2017. Compared to the previous year, it saw an increase of 47 percent. His rival, Alibaba, paid attention to this figure.

A new ecommerce threat for Amazon

According to Reuters, the Asian arch-enemy of Jeff Bezos has just acquired Koala. This company ecommerce It was part of the NetEase group and specializes in the sale of luxury items, curated to the preferences of each user. In particular, it allows users to access high quality products from foreign brands. For the acquisition of this new business unit, the brand co-founded by Jack Ma would pay around two billion dollars.

Together with the company of ecommerce, Alibaba would acquire a minority stake in NetEase. Specifically, in your music streaming brand. Through Koala, the giant is expected retail Asia can access 45 percent of the global luxury market that is concentrated in China. Among the brands that collaborate with this business are Gucci, Burberry and Shisheido. It would also seek to close alliances with Tiffany, Ralph Lauren and Coach.

Closing battle fronts everywhere

Amazon and Alibaba not only compete in the ecommerce deluxe. Both launched, with weeks of difference, facilities and utilities to attract new Allied Small and Medium Enterprises (SMEs). In February, the business of Jack Ma acquired a remittance company in Europe, while the Jeff Bezos brand, with the help of Valentino, presented an online 3D store in April. Both have also invested large amounts in air Transport.

It is relevant that Alibaba has entered a sector such as ecommerce luxury because it shows your willingness to diversify. At the moment, Amazon has the advantage in the western world because of its brand positioning and greater offer of services. But slowly its Asian rival is closing the gap not only in China, but in other key markets. It seems that Bezos' business begins to be cornered by the persistence of its competitor.

The best option for Amazon would be to consolidate its ecommerce strategy in the West. That is, investing in its buying and selling platform provides the most appropriate and attractive service for all users. In this way, you could keep the floor longer, despite Alibaba's attempts. This could also help you design the tools necessary to create a useful strategy of conquest for the Chinese market in the long term.