Wednesday, 2024 April 17

Alibaba Investing in China Rural Ecommerce as Urban Growth Plateaus

Alibaba reportedly is dipping its toes into underserved rural areas China by putting RMB 4.5 billion yuan (around $716.8 million) into a local rural e-commerce platform Huitongda Network as e-commerce growth in urban cities plateaued these years. Huitongda covers more than 200m Chinese rural population through the 80,000 shops (many are mom-and-pop businesses) in 15,000 towns across 18 provinces.

Recent years have seen a spike in rural e-tailing business as e-commerce infrastructure such as logistics and delivery networks keep growing in China’s hinterlands. In addition to Alibaba, it’s archrival JD is also eyeing this opportune new trend.

Source: Xueqiu


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