Alibaba are making bold statements of future plans that are looking to shift the retail world further still. Kevin Hua from AtlasTrend walks us through the claims as well as the other companies set to benefit from the evolving trend in the online market place.
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We’re all familiar with global trading and speaking with anyone anywhere in the world – but Alibaba are taking that to the physical level; aiming to deliver anywhere in the world in 72 hours.
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Alibaba to deliver worldwide in 72 hours – how soon?
- Alibaba is committing to achieve this long-term goal within10 years
- Alibaba states it will invest another US$15.2 billion over the next 5 years to build out its global logistics network-aims to fulfil orders in China within 24 hours and within 72 hours globally
Amazon vs Alibaba – competitors?
- Yes, we believe they are current and long-term competitors
- Both have significant cloud and retail businesses, entering media entertainment space, committing to investing and owning its own logistics infrastructure despite capital intensity
Alibaba’s other long-term projections
- Within 10 years, it would deliver 10 billion packages a day
- Within 20 years, Alibaba believes 60% of the world will shop online– significant growth considering online shopping is <20% in China, 10-20% in the U.S. and single digit in many other countries
What are the investment opportunities – what companies to back?
- Many companies will benefit from this long-term, structural growth story of growth in logistics
- Obvious names are Alibaba and Amazon – have expertise and financial firepower
- Traditional logistics plays such as Fedex and UPS as they continue to benefit from rising parcel volumes
- Companies enabling logistics, e.g. software for use in warehouse fulfilment and supply chain management, those focused on customs clearance, agency and freight forwarding, payments systems
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