By opening its first physical trade center in India, Alibaba intends to tap in the Indian market and increase its user base.
Alibaba plans to increase its Indian user base by more than twice in the coming years. By establishing its first physical trading facilitation center in Jaipur, India, the Chinese e-commerce company has tried to penetrate in the Indian market. Moving forward, Alibaba has planned to set up more such facilities offering online and physical facilitation services in small medium enterprises (SMEs) education centers and key cities in selected industrial centers in the region.
To tap Indian rural areas and small cities, the Hangzhou based organization also introduced a Hindi portal to connected SME with global purchasers. An official of Alibaba, Timothy Leung, said that by providing services and details in Hindi, the platform would enable traders in India, especially those belonging to rural areas and small cities, to connect easily with sellers across the globe.
He also told the organization would offer Trade Assurance Program on the platform to provide full set of protections for purchasers in international trading. Alibaba.com will make a repayment to Indian merchants if a vendor does not meet the delivery deadline or the quality of products is unable to meet the requirements of the contract.
The business-to-business arm of the online retailer plans to increase its user base over the years by boarding 5 million enterprises on its wholesale marketplace. The company will provide a collateral-free SMEs finance support program. Jeena and Capital Float will offer the credit and logistical facilities respectively, providing financial support to Indian SMEs in trading across the border based on their credit profile and historical trade information.
Founder and CEO of Capital Float Gauvraj Hinduja said, “Access to credit has always been a big bottleneck to the global ambitions of small Indian businesses. This new credit scheme can enable SMEs to break limits and set the stage for them to realize their true potential.”
According to Tech Story, Alibaba Group has taken another step to penetrate into the Indian e-commerce industry by collaborating with Paytm of India. Paytm would turn into a launch pad for the payment application of Alibaba, Alipay.
Indian mobile payment application will help execute this launch by employing its local consumer database. Nevertheless, in return, the Noida-based organization will deploy the cloud computation division of Alibaba, known as AliCloud.
By jointly working together, both organizations have aimed to offer a customer friendly marketplace to the residents of India and China. Chinese customers can make payments to Indian sellers through Alipay, while users of Paytm in India can benefit from merchant base of Alipay in China, Japan, U.S. and U.K.
Alibaba prefers Paytm among other Indian payment services due to various reasons. It has also invested in this payment service, which raised its overall valuation in India.