Alibaba's AliExpress Offers Subsidies to Chinese Brands Amidst Rising Competition

Alibaba Group Holding’s international online shopping platform, AliExpress, announced a new initiative to provide fresh subsidies to entice more Chinese brands and merchants to sell overseas. This move comes as the e-commerce giant faces growing competition from rivals like PDD Holdings’ Temu and fast-fashion retailer Shein.

The campaign, dubbed “10 billion yuan of subsidies,” will offer subsidies to an initial batch of 1,000 Chinese brands and merchants, including those already operating on Alibaba’s domestic retail platform Tmall. While the exact amount of subsidies was not disclosed, participants will also gain access to Alibaba’s other international e-commerce channels, such as Lazada in Southeast Asia, Miravia in Spain, Trendyol in Turkey, and Daraz in South Asia.

Registered participants will receive assistance in marketing to boost online consumer traffic and special delivery services through Alibaba's Cainiao Smart Logistics Network. This initiative highlights Alibaba's response to the intensified competition in the e-commerce landscape, especially amidst a post-pandemic economic recovery that has weakened consumer spending in the domestic market.

Notably, AliExpress recently secured a sponsorship deal for this year’s European Football Championship, Euro 2024, becoming the first exclusive e-commerce platform partner for the national men’s teams under the Union of European Football Associations.

Alibaba's international expansion efforts have seen recent milestones, including the extension of its "five-day delivery" service to the United States and other countries such as Mexico, Germany, France, Portugal, and Saudi Arabia. In the quarter ended December 31, AliExpress recorded a 44% year-on-year revenue increase, contributing to Alibaba’s International Digital Commerce Group.

Alibaba co-founder and chairman Joe Tsai expressed confidence in the company's position amidst rising competition and macroeconomic pressures, stating that Alibaba is poised for a comeback with a restructuring process underway and new management in place.

Learn more about Alibaba's efforts to support Chinese brands and merchants through AliExpress amidst increasing competition.