Alibaba’s move to take control of hypermarket operator Sun Art is expected to push forward its ‘new retail’ strategy in China. The stakes are high for Alibaba amid predictions that China will soon edge out the United States as the world’s largest retail market. — SCMP
Alibaba Group Holding’s recent US$3.6bil (RM14.92bil) deal to take control of Sun Art Retail Group, China’s largest hypermarket operator, has intensified its competition with Tencent Holdings to transform the country’s vast trillion-dollar retail market.
“The race to digitise retail in China is a two-horse race [between Alibaba and Tencent], and Tencent is actually further along,” said Jordan Berke, founder and chief executive of Tomorrow Retail Consulting. “Many national retailers have affiliated themselves with Tencent, and that has created a disadvantage for Alibaba.”
