Analysis of AliExpress

1. GROUP REPORT
ANALYSIS OF ALIEXPRESS

2. THE DIGITAL ECONOMY
• MARIE GAELLE LAETICIA ADAKEN
• JAMILY JEANNE
• CHRISTELLE MARIA LABLANCHE
• BRADLEY SHANE DARREL PERRUMALL
• MARIE BEATRICE CORALIE CANGY
• SHROOTEE JHAREE

3. ALIEXPRESS

4. ORIGINS
• LAUNCHED IN 2010 BY JACK MA WHO IS THE CO FOUNDER OF ALIBABA GROUP.
• CHINESE ONLINE SHOPPING SITE WHICH IS PART OF THE ALIBABA GROUP.
• ALIBABA FOUND ITS NAME FROM THE CHARACTER OF THE FILM ‘ONE THOUSAND AND ONE NIGHTS’.
• ALIEXPRESS IS RECOGNISED AS AN INTERNATIONAL TRADING PLATFORM.
• IN DECEMBER 2014, ALIEXPRESS WAS THE 10TH MOST POPULAR WEBSITE IN BRAZIL.
• MAIN BRANCH WAS IN CHINA, THEN IT EXPAND WITHIN UPCOMING YEARS.

5. MARKETING STRATEGY
• MARKETING MIX
• MARKET SEGMENTATION
• POSITIONING
• TARGETING
• AGGRESSIVE ONLINE MARKETING STRATEGY

6. MARKETING MIX
• PRICE
• PLACE
• PRODUCT
• PROMOTION

7. PRICING STRATEGY
• PENETRATIVE PRICING: Using prices below those of existing competitors. Increase sales and achieve
economies of scales in terms of production.
The revenue of AliExpress from January from March 2018 has reached 61.9bn yuan (BBC, 2018).
• SKIMMING PRICING: Setting the price high and reducing the price through promotions (Samli, 2015).

8. SEGMENTATION
• DEMOGRAPHIC: Age, Gender and Income
Age: Both youngsters and adults
Gender: men and women
Income: categorise products based on the income of potential customers
• PSYCHOGRAPHIC: lifestyle, interests, opinion and personality
They use these aspects and propose products that will satisfy the needs and wants of their customers.

9. TARGETING AND POSITIONING
• Single day festival organised every year
• Shopping for 24hrs with more than 14,000 brands
• Customers benefit from promotion and new products available
• Positioned as one of the best brokerage model

10. SWOT ANALYSIS
• Assess internal and external factors

11. • Strengths
1.Their strategies are mainly based on customer care
and customer satisfaction.
2.Target mass market and contribute to high levels of
revenue
3. Collaboration with Taobao which forms part of the
largest company in China
4. Innovates frequently by proposing new online
services.
• Weaknesses
1. Strategy in terms of pricing is restricted.
2. They depend too much on Chinese economy.
3. They have a limited number of business
partnerships
• Opportunities
1. By using the cloud computing , AliExpress has a
great chance to become leader on the market.
2. They can increase their market share by leveraging
on the expertise of other companies within the
Alibaba group such as Lazada.
• Threats
1. The competition is high in the e-commerce sector.
2. Products which are highly demanded on the
platform are seasonal. It can impact negatively on
the profitability of the business.

12. PARTNERSHIP STRATEGY
POSSIBLE IMPLEMENTING STRATEGY THAT CAN BE USED

13. SALES PARTNERSHIP
• Horizontal Sales Partnership
 Both businesses collaborate to improve their marketing position as well as their revenue
• Intersectional Sales Partnership
 Businesses from different areas work in partnership thus agreeing and sharing their knowledge to attain
their objectives
(Henderson,2014)

14. PRODUCTIVE ACTIVITY AND COMMUNITY
• Analysis of the consumer behaviour
• Engagement with the customer on regular basis
• Creation of long termed reliability
• Communication facility to improve trustworthiness
• Use of adverts and techniques such as coupons, free gifts among others
(Patel,2015)

15. ATTENTION ECONOMY
• Ways of keeping the public’s attention towards the online business
• AIDA : attention is the utmost type of marketing for any business.
• Attract consumers through attention.
• Types of techniques used:
1. Pop-up adverts in videos on social media and online platforms .
2. Display ads- short and interesting. Facebook ads

16. SHARING OR GIG ECONOMY
• The sharing economy also known as the peer-to-peer market
• Created by online users without any responsibility behind.
• They do this on a short period of time.
• Sharing economy have emerged gig workers.
• AliExpress: they apply people on a short term basis, without any duty towards these workers; part time
jobs.

17. COMPETITIVE STRATEGY
• Research to increase productivity and competitiveness
• Provide quality products
• Price advantage
• Worldwide shipping; most of the time free
• Refund after unsatisfied sale is present

18. NETWORK EFFECT
• Create a large market space for resellers increasing its value
• Comment section for reviews
• Safe online environment for shopping

19. CONCLUSION
• Based on all these aspects, AliExpress is one of the most successful e-commerce in the online shopping
world.