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Alibaba Invests Tokopedia

Alibaba Invest Billion Dollars in Tokopedia

Alibaba Group Holding Ltd. has invest a US$1.1 billion investment in one of the biggest Indonesia’s e-Commerce, PT Tokopedia. With the purpose to accelerate Alibaba’s expansion into Southeast Asia’s largest economy, which is an environtment for online retail companies. Alibaba really expands its influence after last year’s acquisition of Lazada, that also has a strong presence in Indonesia.

Southeast Asia, especially in Indonesia is an interesting market for Alibaba to grow their marketing strenght. Because of the consumptive people with total 560 people , it makes a potentially big customer base. However, early this year, there were unconfirmed rumors that Zalora (Fashion Retailer) was facing trouble in the country. It said that a giant MAP Group was considering to buy out the business. But, those rumors have refuted.

Founded in 2009 by William Tanuwiaya, Tokopedia’s marketplace model is similar to Alibaba’s Taobao platform. It has a mobile app that has downloaded at least 10 million times.

“The partnership with Alibaba will enhance the scale and quality of Tokopedia’s offerings to its customers. And make it easier for merchants and partners to do business across the archipelago and beyond,”Tokopedia said. “The proceeds will be use to build a new research center, hire top talents and support some two million merchants on the platform,” said Tokopedia’s CEO.

“Helping small business succeed is a common vision shared by both Tokopedia and Alibaba Group,” Alibaba’s CEO, Daniel Zhang. Zhang also said “We anticipate that we can generate a lot of synergies and chemistries” in the in the Indonesian market in B2B and C2C.

Actually from this news, there are two conclusions. The first is there could emerge an increasing flow of Chinese product in Indonesia. And the second is , it threatens the position of local Indonesia’s e-Commerce businesses.

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