The top competitors of Alibaba include Jingdong, Tencent, Sina, Amazon, Walmart, Flipcart, and Rakuten. They are the major competitors of Alibaba in China and outside China.
Alibaba came from humble beginnings, born in the clubhouse of a ping-pong club. It started out as an online marketplace for small businesses to sell their products internationally by making use of China’s prevalent culture of using informal networks and connections to provide goods and services. E-commerce was still in its infancy when Alibaba Group began operations, but the founders Jae Yun Ma, James Liang and Jack Ma understood that this fledgling online business would be so much more than just buying goods online. Alibaba’s customers could buy virtually anything they wanted – staples such as food or household goods, or bigger ticket items like homes or cars – all through the same website.
According to Forbes, Alibaba is the 23rd largest company globally with a $657.5 billion valuation, right between Nike and Samsung. In 2020, Alibaba Group generated more than $93.8 billion in revenues with $23.3 billion in profits; that’s only ten percent less than the previous year! Although Alibaba is so well known as an e-commerce giant, it actually operates across multiple sectors – Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives.
Alibaba’s core commerce unit takes their name from their Taobao platform which revolutionized the Chinese shopping industry by featuring a unique business model that allows buyers and sellers to communicate and have direct contact. The Alibaba cloud falls under their cloud computing segment, and offers elastic computing, database, storage, big data analytics, machine learning tools, security, app management, and many other technologies for its users. Because of being fined for anti-trust practices (May 2021), this indicates it is under pressure from strong competitors forcing the company to innovate new services in order utilize new technology.
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Top 7 Competitors Of Alibaba (Within China & Outside China!)
Here is an in-depth details of Alibaba’s top seven competitors:
JD.com is an online shopping platform that specializes in hosting and dealing with merchants, businesses, customers, and other related services in the e-commerce field. It was founded by Richard Liu as ‘Jingdong Century Trading Co.’ with a humble beginning as an electronics business back in 1998 before venturing further into e-commerce territory – which proved to be highly successful for JD.com thus far! As of 2019, JD.com boasts a $82.8 billion revenue turnover and employs 220,000 people to help manage all of those massive numbers. The company itself is based out of Beijing, China where it happily resides for the time being!
JD.com expands in an increasingly competitive market when one considers that Alibaba is still catching up to its dominant competitor, JD.com. Just today in news, it was reported that Alibaba is to launch the T-Mall app on JD’s platform, so at least for now it seems as though there’ll be a healthy balance between these two China competitors who are valued and growing rapidly.
Tencent’s headquarters are located in Shenzhen, China. It has more than 800 subsidiaries and operates in sectors ranging from social media to instant messaging platforms. Tencent was named the second-largest video game company in the world by sales revenue. The WeChat messaging platform had over 1 billion registered users in 2018.
Evidently, Tencent and Alibaba are giants in the Chinese tech space. In fact, they have a digital marketplace that boasts more than 800 million users. Both companies have their eyes on dominating the rest of the world. But Tencent is slightly ahead of its competitor Alibaba this year — it outdid Alibaba by earning $33 billion through sales, while it earned a total of $24 billion.
Sina got its start as an online media company in 1998 when it was founded by Zhidong, Yan, Ben Tsiang, and Hurst Lin. It got a big boost in 2003 with the advent of SINA Weibo, an online social media platform that generates the bulk of their income to this day. More recently it has diversified into other related fields including communication and entertainment. Sina’s services are available in various languages. The company’s headquarters are located in Shanghai with more than 63,400 people employed by the company globally.
Sina competes against Alibaba in the digital media and entertainment segment. Sina is a popular platform while Alibaba offers a range of services which include e-commerce, cloud computing, TMall, Taobao Marketplace and more.
Amazon is one of the best online retailers in the business. It was established during the year 1994 and is headquartered in Seattle, Washington. Amazon initially started out as an online bookstore but then converted into a top online retailer worldwide with a strong base of loyal customers who repeatedly purchase from the online retailer. Currently, Amazon has a strong base of loyal customers who purchase frequently from the Amazon eco-system.
Amazon, as we all know, was originally founded on the basis of doing business in books and gradually grew over time into many other product groups. It now sells almost anything from toys to cell phones, clothing and housewares to jewelry. Basically it has become a strong e-commerce giant which sells practically everything imaginable!
Amazon is a true online giant handling millions upon millions of transactions every day and using more than enough resources and manpower to keep itself going. Always remember to stay positive when you face obstacles because no matter how tough things may seem right now there is always a way around it provided you’re willing to try!
Amazon provides a platform for buyers and sellers to connect directly, with Amazon taking care of shipping most of the time. Amazon is great because it offers various ways of purchasing from the website, including credit card and paypal. Due to this reason, it is considered to be a competitor of Alibaba.
Walmart is an American chain of retail stores with over 11,000 locations in 28 different countries around the world. Walmart also operates an online shopping website that caters to customers who prefer to shop from the comfort of their own home, called walmart.com. One of Walmart’s main focuses is on providing low prices for their products, which makes their website a popular choice for many customers who are looking for deals.
They have a frequent buyer program where you can get free Walmart gift cards, which you can use in any Walmart store. People are able to monitor all their orders online using their own website. Walmart has grown to become one of the largest companies in existence, and it’s quickly gaining ground on Alibaba itself when it comes to international markets!
Based in Bengaluru, India, Flipkart was founded by two former Amazon employees Binny Bansal and Sachin Bansal. The Indian eCommerce company started with books before they expanded into consumer electronics, fashion, groceries, home essentials and lifestyle products. With over 100 million registered users and 80 million products available to purchase on the platform Flipkart is the largest e-commerce company in India. In 2018 Walmart acquired an 80% stake in the company for $16 billion. The company currently has about 30,000 employees and posts a revenue turnover of $6.1 billion annually as of 2019.
There are many companies who have started out with big dreams but haven’t really put their best foot forward when it comes to execution. We’ve found that Flipkart, much like a number of companies who initially launched an operation in the e-commerce field more than a decade ago and have since become some of the best competitors in the market, is trying their very hardest to make an impact on not just India’s economy but other neighboring countries as well.
There are many online shopping brands on the internet. But one of the most famous is Rakuten which was founded in 1997 by Hiroshi Mikitani. It has its headquarters in Tokyo, Japan. It also operates globally, with a presence in over 30 countries and 1.4 million registered members. The company posted a revenue turnover of $11.1 billion in 2019, generating income from its e-commerce platform as well as other ventures such as communications, digital content and financial technology services. Rakuten employs 17,214 people worldwide.
Rakuten is one of the top e-commerce giants in Japan. But it doesn’t hold a candle to Alibaba, a similar e-commerce giant in China. In fact, Alibaba often comes out on top as having bigger revenue than Rakuten. Rakuten lacks another key ingredient that Alibaba has up its sleeve – membership-based platform benefits that give members special privileges and perks.
The e-commerce marketplace is a growing trend for modern consumers. New platforms are being introduced to offer convenient shopping for individuals worldwide in order to make purchases across the globe. Alibaba, taking note of the growing demand for online shopping, has introduced many technologically advanced methods of purchase through the use of apps or other Internet-enabled devices and is making efforts to meet their customers needs by continually developing this technology.
Last Updated on August 6, 2022 by Ana S. Sutterfield
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.