Alibaba's AliExpress pushes '10 billion yuan of subsidies' campaign to entice more Chinese brands and merchants to sell in overseas markets

Alibaba Group Holding's international online shopping platform, AliExpress, will provide fresh subsidies to entice more Chinese brands and merchants to sell overseas, as the e-commerce giant moves to fend off growing competition from PDD Holdings' Temu and fast-fashion retailer Shein.

The campaign called "10 billion yuan of subsidies" - a typical mainland marketing phrase used to tout large online allotments - will be given to an initial batch of 1,000 Chinese brands and merchants, including those who have already opened a store on Alibaba's domestic retail platform Tmall, according to an AliExpress statement on Monday. AliExpress did not provide the exact amount of subsidies.

Chinese brands and merchants who register under the campaign will also be able to sell their goods on Alibaba's other international e-commerce channels including Lazada in Southeast Asia, Miravia in Spain, Trendyol in Turkey and Daraz in South Asia, according to AliExpress.

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Those who sign up for the AliExpress programme will also receive assistance in terms of marketing to boost online consumer traffic and special delivery services via Alibaba unit Cainiao Smart Logistics Network. Alibaba also owns the South China Morning Post.

Chinese brands and merchants who register under the AliExpress campaign will also be able to sell their goods to Alibaba Group Holding's various overseas retail platforms like Daraz, with operations in Pakistan, Bangladesh, Sri Lanka and Nepal. Photo: Alibaba alt=Chinese brands and merchants who register under the AliExpress campaign will also be able to sell their goods to Alibaba Group Holding's various overseas retail platforms like Daraz, with operations in Pakistan, Bangladesh, Sri Lanka and Nepal. Photo: Alibaba>

The latest AliExpress campaign shows how competition from a new generation of China-founded online retailers - Temu and Shein in particular - has raised the stakes for Alibaba's expansion efforts overseas, as a shaky post pandemic economic recovery weakened consumer spending in the domestic market.

AliExpress recently signed up as a sponsor of this year's European Football Championship, or Euro 2024, to become the first exclusive e-commerce platform partner for the national men's teams under the Union of European Football Associations. Financial details of the deal were not disclosed.

Early last month, Alibaba expanded its "five-day delivery" service to the United States for the benefit of AliExpress shoppers in the world's largest economy. The Cainiao-led service, which was introduced last year, also covers Mexico, Germany, France, Portugal and Saudi Arabia.

In the quarter ended December 31, AliExpress boosted revenue at Alibaba's International Digital Commerce Group by 44 per cent year on year to 28.52 billion yuan (US$4 billion). AliExpress also delivered more than 60 per cent order growth in the same period.

Alibaba co-founder and chairman Joe Tsai has said that Alibaba is poised for a comeback after several years of rising competition and macroeconomic pressures.

The Hangzhou-based company is "a lot more confident" about its position as one of China's top e-commerce players, as it undergoes a restructuring process with new management in place, Tsai told US business news channel CNBC in a report that was broadcast in February.

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