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Alibaba said to launch direct online retail model to complement Taobao, Tmall platforms amid increased competition, weak consumer spending
- A new app to be launched via Tmall will establish an online retail model in which Alibaba will directly source, buy, store and market goods
- A number of consumer electronics brands have already started talks with Alibaba ahead of this launch
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Alibaba Group Holding plans to introduce a direct online retail model to complement the operations of its flagship platforms Taobao Marketplace and Tmall, according to a Chinese media report, in a move that would bolster its core e-commerce business amid increased competition and weak consumer spending on the mainland.
A new app, called Mao Xiang in Mandarin, will be launched via Tmall to establish an online retail model in which Alibaba is directly involved in sourcing, buying, storing and marketing goods in a manner akin to rival JD.com’s traditional operation, according to a report by online media LatePost, citing anonymous sources.
A number of consumer electronics brands have already started talks with Alibaba ahead of its direct online retail model’s launch, the report said.
Alibaba, parent of the South China Morning Post, did not immediately respond to a request for comment on Thursday.
The new initiative, according to the LatePost report, is led by Alibaba’s business-to-consumer retail group and kicked off development at the end of last year.
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