Alibaba reveals expansion plans for 2016

The CEO of Chinese internet giant Alibaba, Daniel Zhang, has revealed the company's expansion plans for 2016 and spoke of a "three-pronged strategy", which includes targeting first-tier cities in China and promoting e-commerce among rural Chinese and globally through international e-commerce websites.

Planning to grow its already considerable operations in China's biggest cities, Zhang revealed that after prioritising on its global expansion and greater penetration of China's underserved rural markets last year, "global import, rural e-commerce and top-tier cities" in China would be Alibaba's "three key battlefields" in 2016.

Global import, rural e-commerce and top-tier cities are main priorities

“We are going to consolidate and expand our current market, particularly by enhancing reputation, optimising user experience and increasing our market share in first-tier cities,” said Zhang when addressing employees at the company's office in Hangzhou, providing few other details according to Alibaba's news website Alizila.

On a global scale, the company will continue to build up channels for international brands and merchants to sell their products online to Chinese consumers, focusing on Alibaba's Tmall Global and g.taobao.com, a niche marketplace with products from around the world within the giant Taobao platform. “We are going to build our businesses around the two brands, in order to raise their awareness among customers and offer optimal user experience,” confirmed Zhang.

In 2015, Alibaba had stepped up its efforts to globalise Alibaba's mostly Chinese operations and hired former Goldman Sachs executive Michael Evans to oversee the international expansion. In addition, the company ramped up its European presence and made cross-border online shopping a highlight of its annual '11.11' shopping festival.

At home, Alibaba's renewed focus on the country's wealthy mega-cities emerged already in September of last year when the Chinese internet giant announced it would add its second company headquarters (after Hong Kong) in Beijing.

The company also increased its online sale of groceries and consumer electronics in the capital and plans to use it as a gateway for customers in northern China - some 400 million people – who do not have access to the same internet penetration and support infrastructure as the southeastern provinces.