WEDNESDAY, 21 FEB 2018

 

CONNECT

Facebook Linked In Twitter
Chinese_Edition_13/02-15/04_728x90px
GloriaJeans_266x90px
IMH LTD

Anastasiades to Raise Issue of Illegal Turkish Navtex at EU Leaders Informal Meeting

Duncan: UK Assessing Events in Cyprus EEZ

IMH LTD
PwC_02/02_23/02_468x60px

INTERNATIONAL

brought to you by CIPA

Chinese Alibaba Seeks Upscale Consumers

Chinese Alibaba Seeks Upscale Consumers

Alibaba Group, the Chinese ecommerce giant, is courting upscale consumers in what it sees as its next bastion of growth, Investopedia reports.

While ecommerce sales have been slowing in the region, well-heeled consumers are increasingly purchasing luxury goods and upscale services online, presenting an opportunity for the company to continue on its rapid growth pace.

The first evidence of its new push came earlier this week when it announced Chinese travelers can book hotel stays at Marriott hotels around the globe via Alibaba’s website and pay for the bookings via Alipay, its digital payment platform. “E-commerce is not just related to trading of goods,” Alibaba chief executive Daniel Zhang Yong told reporters when announcing the partnership, according to the South China Morning Post. “Today, consumers’ lifestyle has vastly changed and they need various kinds of services.” According to the executive the new-found wealth of many in China is driving huge demand for high-end travel excursions, upscale entertainment, luxury goods and other services. Alibaba, he argued, can meet all of those demands thanks to its online retail platforms.

With the Marriott deal, the hotel group becomes the first to take part in Alibaba’s new "88" membership program, which is a customer loyalty plan with support from 50 global brands. Jiang Fan, the head of mobile operations at Alibaba’s Taobao business said in the same report that under the loyalty program some members get faster access to the latest products from its brand partners, limited-edition items and other services and products geared specifically for them. “First, they splurge on goods via online shopping,” Jiang told the Post. “Beyond that, their consumption behavior earns them credit as trend-setters [or top influencers under the program].” Fan acknowledged these members would only represent a small amount of customers on Alibaba’s ecommerce platforms, but they will play a big role in setting the trends for online shopping. He said there will likely be several thousand members that get the top level ranking.

The move on the part of Alibaba to go after the affluent in China comes at a time when consumers in the country are clamoring to buy high-end luxury goods. Bain Capital predicts luxury sales in China will increase between 6% and 8% this year alone, thanks in part to increasing discretionary spending on the part of Chinese consumers, easy access to credit and a weaker yuan​. These same consumers are also interested in traveling abroad, with The Wall Street Journal, citing the research firm Euromonitor International, reporting that online travel sales in China are set to hit $86.9 billion this year, up 20% from a year ago. Alibaba said in a press release announcing the deal with Marriott that Chinese travelers are forecast to take 700 million trips during the next five years.


 

MORE ON INTERNATIONAL

Ikea Joins Big Clean Switch to Offer 100% Renewable Energy Tariff

Joint venture claims cheaper green power could save UK households £300 a ...

HSBC Profits Jump to $17.2bn on Asia Growth

HSBC has posted a pre-tax profit of $17.2bn (£12.3bn) in 2017, saying its focus on ...

KFC in UK Closing 900 Outlets

KFC has closed more than half of its 900 UK outlets after delivery problems meant they ...

FROM AROUND GOLDNEWS

   

Tommy Hilfiger Partners With Formula One World Champions Mercedes-AMG Petronas Motorsport

The multi-year deal brings the Tommy Hilfiger brand back to the world of Formula One for the first time in 17 years, as the Official Apparel Partner for the ...
   

KPMG Cyprus Participates At the 3rd Inter-Communal Business Mixer

KPMG Cyprus participated at the 3rd Inter-Communal Business Mixer which took place at the Home for Cooperation. The Inter-Communal Business Mixer is a ...
   

Duncan: UK Assessing Events in Cyprus EEZ

The UK government is currently assessing the events in the Exclusive Economic Zone of the Republic of Cyprus, related to the hydrocarbons drilling activity, ...
   

Anastasiades to Raise Issue of Illegal Turkish Navtex at EU Leaders Informal Meeting

Cyprus President Nicos Anastasiades will raise the issue of the Turkish actions in Cyprus` Exclusive Economic Zone during the informal European Council to be ...
   

Ikea Joins Big Clean Switch to Offer 100% Renewable Energy Tariff

Joint venture claims cheaper green power could save UK households £300 a year Ikea is calling for households to join its latest joint venture ...
   

Cyprus Records Deflation Of 1.5% in January

Cyprus recorded deflation of 1.5% on an annual basis in January, official data released on Monday 20 February show.   The Harmonized Price Index for ...
   

Kouyialis: Cyprus Expects EU to Maintain Improved Direct Payments System In Future CAP

Cyprus expects the EU to maintain the role of direct payments as a means of supplementing and supporting agricultural incomes during the revision of the EU ...
   

HSBC Profits Jump to $17.2bn on Asia Growth

HSBC has posted a pre-tax profit of $17.2bn (£12.3bn) in 2017, saying its focus on Asia was driving growth. The results represent a 141% jump on the ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
Gold_Issue_300x250px

IMH LTD