In an article published in the Wall Street Journal Alibaba braces for mobile devices ,
the Chinese e-commerce giant faces a major challenge: how to cash in on the mobile Internet.
Alibaba's two online marketplaces, Taobao and Tmall, together handle more total dollar transactions than any e-commerce platform including Amazon and eBay.
But more than 90% of those transactions come from PCs. As Chinese consumers increasingly use mobile devices for all kinds of online activities, Alibaba is trying to figure out how to defend its No. 1 position in China's rapidly growing e-commerce market.
Chinese Internet giants Tencent Holdings Inc. and Baidu Inc. are muscling in to strengthen their own e-commerce and mobile capabilities. These companies all realize that they can no longer specialize in one area, such as e-commerce, social networking or search, as they compete for the limited time and attention of smartphone users.
"In the future, there will be more competition from all areas of the Internet," said Alibaba Chief Executive Jonathan Lu.
the Chinese e-commerce giant faces a major challenge: how to cash in on the mobile Internet.
Alibaba's two online marketplaces, Taobao and Tmall, together handle more total dollar transactions than any e-commerce platform including Amazon and eBay.
But more than 90% of those transactions come from PCs. As Chinese consumers increasingly use mobile devices for all kinds of online activities, Alibaba is trying to figure out how to defend its No. 1 position in China's rapidly growing e-commerce market.
Chinese Internet giants Tencent Holdings Inc. and Baidu Inc. are muscling in to strengthen their own e-commerce and mobile capabilities. These companies all realize that they can no longer specialize in one area, such as e-commerce, social networking or search, as they compete for the limited time and attention of smartphone users.
"In the future, there will be more competition from all areas of the Internet," said Alibaba Chief Executive Jonathan Lu.
Unlike Amazon, Alibaba doesn't sell products but makes money through advertising and other services it offers to millions of merchants using its marketplaces.
To better prepare for the rise of the mobile Internet, Alibaba has been trying to gain control over key mobile services and technologies—be it mapping, social media or operating systems—to lure smartphone users to its marketplaces. It has spent about $1 billion in the past several months to buy stakes in an array of services".
How quickly Alibaba adapts to the shift will be crucial in the next phase of its growth. The company is preparing for an IPO that could happen as early as this year and value the company at $70 billion or more.
