Alibaba’s conquest in Bangladesh market- Will Alibaba succeed? PDF

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At this point almost anyone knows about Alibaba; then again to refresh memories Alibaba is a multinational technological company founded by Jack Ma which specializes in three dimensional sales services, electronic payment, cloud computing service and shopping search engines and has an army of compa...

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Alibaba’s conquest in Bangladesh market Introduction At this point almost anyone knows about Alibaba; then again to refresh memories Alibaba is a multinational technological company founded by Jack Ma which specializes in three dimensional sales services, electronic payment, cloud computing service and shopping search engines and has an army of companies under his banner such as AliExpress, TMALL to name a few. It was the largest IPO in 2014 and is listed as the 31st largest public company on the Forbes Global 2000 2020 list. Although initially introducing itself as a trader in the Bangladesh’s market Alibaba now to be regarded as an invader. Let’s uncover how did it come to this.

A trade established We don’t know exactly when it all started but Alibaba has a huge market share in Bangladesh through its online marketplace AliExpress and the number of buyers is ever increasing. Despite AliExpress shipping its products directly to Bangladesh more time than usual due to lack of international credit cards and unavailability of PayPal; consumers move to third online shops who buys the product on behalf of the consumer and delivers it to them charging a hefty price and skims a fairly large profit in the name of customs tax and shipping cost. Here are 5 of them from where we can buy AliExpress products in Bangladesh 1. Shadmart – A shop that has three warehouses in China for the Bangladeshi buyers and cater for products such as women’s accessories, kid’s toys extra. Since they directly ship their products from mainland China; they provide the cheapest rates. 2. Bagdoom Global- A online store which deals in mainly lifestyle products shipped directly from China. They have such as a reliable customer base that they go so far is to give cash on deliver other payment methods are DBBL Rocket and Bkash. 3. AliExpress BD- As the name suggests AliExpress BD is not a subsidiary of Alibaba; other than it is a platform that provide rates for products in Bangladeshi currency. They show a proper estimation of costs and doesn’t skim the customers for higher profits. 4. Kids Fashion Wear BD- A f-commerce page operating directly from Facebook and stocks products from China through Ali express. 5. Daraz.com.bd- A subsidiary of the Alibaba group a fact which we will touch on later. Daraz is one of the largest online marketplaces in Bangladesh which not only showcases goods from local businesses but also imports directly from AliExpress.

Domination of the trade source and route -Acquisition of Bkash and Daraz The first fort which was taken control over was of Bkash a Bangladeshi mobile financial services (MFS) when in the month of April 2018 Ant Financial Services Group a subsidiary of Alibaba group went on a strategic partnership with bKash limited.

This led to Alipay withholding 20% of bKash stakes valued at $128 million then in 2018 and giving the latter financial and technological advantages. For Alibaba this paved the way for further market penetration into the Bangladesh market through a Bangladeshi e-payment company which was on the Fortune Change the World 2017 list. As of 2021 bKash dominates 80% of the mobile financial service (MFS) market; thus, a reach Alibaba saw forthcoming. The second fort of took over was the acquisition of Dara as stated before one of the largest online marketplaces in Bangladesh have its roots from Pakistan. In 2018 Alibaba bought Daraz operations in Pakistan, Nepal, Sri Lanka, and Myanmar. The acquisition was said to enhance the technological, online commerce, mobile payment, and logistical capabilities. As of 2021 Daraz is said to invest $5 billion in the Bangladeshi e-commerce market. In 11.11 campaign Daraz received 1lakh orders amounting to Tk.25 crore in the first hour. Thus, in just one-year Alibaba made its place in Bangladesh’s e-commerce and e-payment market.

Latest Conquest – attempts to revive a dying company The most trending news of yesterday was the acquisition of HungryNaki a local on demand food delivery company of Bangladesh; the first of its kind in Bangladesh which was established in 2013. Although the first; HungryNaki failed to sustain in the market due to the coming of companies such as FoodPanda and Pathaofood. Right before the acquisition HungryNaki had a consumer base of 500,00 customers throughout Dhaka, Sylhet, Chattogram, Narayanganj and Cox’s Bazar and related to a network of 4,000 restaurants. According to a source the acquisition was agreed at merely less than $1 million.

Reference: https://deshiz.com/places-buy-aliexpress-products-bangladesh/ HungryNaki falls on its sword | Dhaka Tribune bKash-Alipay strategic partnership -- an inspiration to start-up businesses (thefinancialexpress.com.bd) Alibaba buys HungryNaki (thefinancialexpress.com.bd)...