Technology

Alibaba Group Holding Ltd (NYSE:BABA) Makes A Major Leeway Into The Digital Economy

A few months back, Amazon.com, Inc (NASDAQ:AMZN) bought the Whole Foods Market. Alibaba Group Holding Ltd (NYSE:BABA) has been in the same realm before.

Two years back, Alibaba penetrated the consumer psyche. That was after the provider took to putting in place Hema, its own supermarket chain. Any user with the Hema supermarket app can easily hook up to Alibaba’s payment system and commerce platform. Shopping for groceries online is now much easier for customers. The Hema chefs are available to prepare any purchased fresh foods. These foods are then paid for through the Alibaba online payment platform Alipay.

R.J. Hottovy, a morning star analyst opined, “Historically, supermarket food delivery has been a difficult, low-profit category from an e-commerce perspective. It doesn’t make a ton of profit but the rationale is that it gets people to keep coming back to their online ecosystem, moving Alibaba from a customer acquisition phase to a customer engagement phase.”

Hopefully, groceries will just be but a section of the company’s many businesses that will be interconnected via the digital economy. It will move quite a long towards helping ensure customer loyalty.

Alibaba has expressed its determination to succeed and sees its expansion into the multiple facets of the digital economy as a major step forward since its establishment. Asides from that, it considers itself to be one of the most trusted companies in the provision of data. The data has been found to be quite useful especially when it comes to carrying out promotions and advertisement too. Through the sale of the data, Alibaba has empowered the sellers of products on Alibaba’s e-commerce platforms in a major way. Most of them have taken advantage of the data to better target a large number of buyers.

A spokesperson working with Alibaba has revealed that the company has plans under way to  complete the construction of a new brick-and-mortar mall. It expects to unveil it in April. It will comprise of a Hema grocery store and that together with other business undertakings will help the company generate higher revenues.

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