The Chinese online seller has collaborated with SingPost to expand e-commerce logistics cooperation.
The Chinese ecommerce giant, Alibaba Group Holding Ltd., has collaborated with the Singapore Post Limited (SingPost). Alibaba news reported that both companies have jointly proclaimed a series of measures for expansion and cooperation following the ratification of a joint venture agreement. The announced measures would not only deepen the business relationship that was initiated last year, but also develop an online selling platform to serve the enterprises across Asia pacific and beyond.
Alibaba news today disclosed that the online retailing enterprise would invest approximately US$67.85 million in the 34% shares of the Quantium Solutions International (QSI). The Singaporean organization would control the rest of the stock. Press sources indicated that SingPost-owned QSI is currently known for providing logistics support to the Asia Pacific region. Its infrastructure caters to more than 10 countries.
Alibaba breaking news exclaimed that QSI would re-establish its business and become a part of the two companies’ venture. This will allow it to speed up its process of developing its e-commerce logistics network and services. The Chinese enterprise would acquire 107,553,907 ordinary stocks amounting to 5% of the existing share capital of SingPost for US$138.6 million. The transaction would increase the Asian giant’s deemed interest by 3.28%.
Both Asian businesses have also jointly developed a strategic business development platform to further enhance integration and effectiveness of ecommerce logistics solutions. The enterprises would share their knowledge and work with each other strengths across the trading logistical chain.
Chairman of SingPost, Mr. Lim Ho Kee, has stated that SingPost has transformed at a steady pace. As a postal service, it is suffering from falling mail revenue due to trends, such as lifestyle changes and electronic substitution. He further added that both companies have benefitted from the deal, as they share similar objectives and their operations are connected to each other.
CEO of Alibaba Group, Daniel Zhang, has stated over the past 12 months, the two organizations have collaborated to identify cross border opportunities and created a set of logistics solutions for various markets. He added that this additional investment highlights the commitment to dominate the global world, which would in turn, let Chinese enterprises and global brands supply more to the world.
Professionals have claimed that the partnership between the Asian enterprises would not only help to extend their customer base, but also improve their reputation in the modern digital world. The management of both partners should now formulate plans to develop high-tech solutions in the most effective manner or their collaboration might fail to appease their customers.
Alibaba is known for its struggles to enter other nations, including USA. It has realized the potential of global markets, but it should keep an eye out for the rising challenges along with it.
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