Whether Alibaba And Lotte Will Enter The Global Electricity Market Will Frighten Amazon

Amazon is a Western electricity giant, and its two rivals in Asia, Alibaba in China and Lotte in Japan, are also developing rapidly. Should Amazon be afraid of their entry into the world?

What about the market?

At present, the winner of the global e-commerce game is Amazon, but Alibaba and Le Tian are far ahead of the local market. As the two companies optimize their platforms and business models, they will probably beat Amazon until they are widely accepted by businesses and consumers worldwide.

Li Qianling of Withinlink said: "Alibaba has a long way to go to get Amazon's achievements today."

She said: "if Alibaba allows the platform to establish links with other businesses overseas, it will surprise international consumers by the surprise of the openness of the platform (consumers can get any information here), the diversity and preferential prices of their products, and Alibaba is a major threat to Amazon at this time."

Reporters from foreign media recently reported that, like other American companies, Amazon focused on its own field, the majority of enterprises in the world think it is the world's largest electricity supplier platform.

When the business tycoon is concerned by more and more consumers outside the United States, it meets two strong enemies in Asia: China's Alibaba and Japan's Lotte.

Alibaba is China's largest electricity supplier platform, and eMarketer, a market research firm, predicts that by 2017, China will surpass the United States as the world's largest retail market for e-commerce.

In 2015, during the "double eleven" period, Alibaba updated the global electricity supplier sales record, and the total merchandise trade amounted to US $14 billion 300 million on that day.

At present, the company's business scope is mainly in China, but chief executive Ma Yun hopes that Alibaba's IPO will change the status quo in 2014.

On the other hand, in 2010, Miki Tanihiroshi, CEO of Lotte (Hiroshi Mikitani), established English as the official language of the company, and has been actively involved in the world.

Activities, so far, the total amount of mergers and acquisitions of the company amounted to 4 billion dollars.

Major mergers and acquisitions include:

In 2015, it purchased $410 million for e-books and an audio reading platform OverDrive.

In 2014, the US shopping website Ebates was purchased at 1 billion.

2014 acquisition of Cyprus mobile communications application Viber for $900 million

In 2013, the video website Viki was purchased for $200 million.

2011 acquisition of Canadian Ebooks Corporation Kobo for $315 million

2011 acquisition of e-commerce website Play.com for $39 million 100 thousand

2010 acquisition of Japanese electricity supplier website Buy.com for $250 million

In 2005, it bought us marketing solution company LinkShare for $425 million.

The global expansion of Alibaba and Lotte can not help wondering: can Amazon win in the electricity market outside Europe and the United States?

These three business tycoons have different business models.

Amazon is a closed system that handles everything for businesses, including warehouse management, logistics and customer service.

And Lotte is built on open systems. They provide shopping platforms and payment portals. Businesses must deal with inventory, logistics and customer services themselves.

Li Qianling, founder and chief executive officer of Withinlink, China investment information management company, said: "Amazon has an advantage over Alibaba because closed systems ensure user experience is consistent, customer service quality is high, business is global, infrastructure is mature, and the trust of existing online customers is available."

Li Qianling added further, but since its initial public offering in 2014, Alibaba has started working with third party cross border logistics companies in mainland China and Hongkong's free trade zones, which has benefited the brands that want to enter China.

She said: "Alibaba's choice of cooperation with logistics companies is wise, which makes international brands much easier."

Lotte is also an open platform, but compared with Alibaba and Amazon, Lotte platform adopts membership system and relies more on consumer loyalty, so it provides consumers with preferential policies for return cash, and a "Lotte super score" that can deduct online or offline shopping volume or other items.

"In 2016, Yue Tian will further focus on building an open e-commerce platform, pushing personalized products for users and providing a pleasant personalized shopping experience," an anonymous related person said.

Lotte has been doing business in many countries through mergers and acquisitions, including the United States, Canada, Brazil and many European countries.

Mark Tanner, general manager of marketing strategy and research firm China Skinny, said: "to some extent, Lotte is better than Alibaba in integrating different investment resources, and Lotte's acquisition of Viber gives the company an advantage in social networking business, which is not Alibaba."

For Alibaba and Lotte, Western markets are hard to deal with, but Ma did not hide his desire to enter the US market.

In 2014, Alibaba co operated with OpenSky, a social networking platform in New York, to create a shopping website of 11 Main, but Alibaba sold its shares in just one year after the launch of the website.

Le Tian is still unknown in the United States and Britain.

At present, Amazon is still the best choice for multinational enterprises, because it has a closed electricity supplier ecosystem.

Because if foreign brands do not establish a distribution channel, logistics and overseas sales team, and cooperate with Alibaba or Lotte, they will pay more for lack of resources.

A Quora user even called Alibaba international platform "business structure is terrible."

The user said that it has established a wholesale distribution channel, hoping to compare which of Amazon, Lotte and Alibaba is the best choice.

He said that Amazon provides warehousing space, free pportation and a good competitive environment. Many people browse, but they need to pay $40 a month. Le Tian will receive a 15% Commission. The choice of niche products is wide and can participate in the international market. But there is no physical shop, and it is also free to pay $33 a month plus other expenses. Alibaba, unlike Amazon and Le Tian, just put distributors together, offer price concessions, and have an international platform, but the business structure of the international platform is too horrible.

China Skinny's Tanner explains: "Alibaba does not have the business structure of overseas start-ups like Amazon. It is difficult for Alibaba to compete with Amazon because of additional costs and different time zones."

However, international brands should not ignore the huge user base of Alibaba and Lotte's two platforms in the region. Amazon does not have such a large user scale in China and Japan. That's why Messi signed an agreement with Alibaba last year to enter Tmall international.

According to reports, the Japanese have 1/4 online shopping activities on Lotte platform.

In addition, Alibaba and Lotte also helped rival Amason to make profits.

Amazon China opens a store on the Alibaba B2C platform, while consumers registered with Lotte's shopping website Ebates can browse Amazon's order, get rebates, and Ebates get a commission.