AliExpress targets “live commerce” and financial products to boost sales in Brazil

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A customer views the AliExpress app on a mobile phone in Nairobi, Kenya. March 12, 2019. REUTERS/George Nganga/File Photo

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SAO PAULO, May 26 (Reuters) – AliExpress, the global e-commerce platform of Chinese giant Alibaba Group Holding Ltd, aims to boost sales in Brazil by offering “live trading”, financial services and registering local sellers on its marketplace, its Brazilian subsidiary. head told Reuters on Wednesday.

With sales growth in Brazil around 130% in 2020, the shopping portal wants to use these initiatives to deepen its connection with customers in Brazil, which has become one of the top five AliExpress markets by sales. in the world, Yan Di said.

He said the company plans to invest more in live commerce, referring to a model that involves online entertainment as a tool to generate customer engagement and drive sales. In recent months, it has increased its investments in the marketing of reality TV shows with large audiences in Brazil, such as “Big Brother Brasil”.

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He added that AliExpress plans to start offering financial services in the country, adding to options it already offers such as interest-free installment payment. In doing so, it takes on a host of other local e-commerce players who have also started offering financial services, including MercadoLibre Inc (MELI.O), Magazine Luiza SA (MGLU3.SA) and B2W (BTOW3.SA).

“Entering the finance ecosystem in Brazil is only a matter of time,” the executive said, though declining to say when that might happen. AliExpress, which mainly works with importers, is also preparing to register local sellers in its marketplace “soon”, he said.

Finally, AliExpress is also looking to improve logistics efficiency to reduce delivery times, Di said. He declined to comment on reports that the company may be interested in buying Brazil’s postal service Correios, which the Brazilian government wants to privatize.

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Reporting by Aluisio Alves in Sao Paulo Editing by Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

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