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Alibaba arrives in France

The Chinese e-commerce giant arrives in France

 

Last October, Chinese e-commerce giant Alibaba had expressed the wish to settle in France. This seems to be confirmed through the announcement of the opening of an Alibaba "embassy" in Paris.

Jack Ma's promise

Jack Ma, the founder of Alibaba, confirmed in an interview with François Hollande his intention to open an "embassy" in Paris in October 2015. This structure would help French companies to use the e-commerce platform in order to sell their products.
Implementation terms and conditions for the project are still unclear, though. But the French president and the Chinese tycoon may have talked about the development through the French post office of a European logistic chain for the Chinese group

 

A hub in France

The announcement is the outcome of several months of negotiations between Laurent Fabius, minister of Foreign affairs and Jack Ma. In May 2014, the two men signed a contract to help French companies export in China. The aim is to promote French brands that Chinese consumers already know well, such as L'Oréal and Clarins, but also to introduce new brands.

The negotiations passed a new step last October: representatives of both countries have talked about a hub in France.

 

France: a challenge for development and marketing

In the group's conquest strategy, France seems to be the right choice. The French have adopted the competitor of Amazon: in late 2012, Alibaba registered 500,000 user companies, which means a 56% increase in one year. According to a Médiamétrie/Netratings report in January 2014, the e-commerce website has attracted over 3.4 million unique visitors in France.

The implementation of the group in France also plays a role in the image of the brand. Until now, Alibaba's success relies on the sale of low-priced products with unclear quality. By getting a foothold in a country known for its luxury industry, the Chinese company seeks a quality upgrading.

 

Conquest of the Western market

Through France, the e-commerce giant seeks a fast progress on the Western market. The recent nomination of Daniel Zhang, main player in the expansion of the Chinese company, as CEO confirms the international orientation of the company.