Ecommerce in South China stimulated by Alibaba

[img_assist|nid=9097|title=|desc=|link=none|align=left|width=100|height=59]Wei Zhe, president of Alibaba stated that in light of the changing environment for small and medium enterprises in the Pearl River Delta the Group decided to open South China headquarters in Guangzhou. The establishment of the new headquarters is intended to help these enterprises find new business channels.

As per Wei’s reports the number of Internet subscribers in Guangdong Province who are actually using Alibaba ecommerce platform accounts for only one third of those in Zhejiang. This is explained by the fact that the companies in the Pearl River Delta rely too much on their geographical advantage, but the single-channel model may bring troubles to these companies when the external environment changes.

Having come to understanding of the important role played by ecommerce in industrial progress the Guangdong government and the companies are shifting their focus to the sector. Ecommerce can help companies disperse the risks while developing new markets and new customers.

With a total investment of USD50 million, the South China headquarters is a wholly-owned subsidiary of Alibaba. Initially the hew offices will serve over 6,000 enterprises within the Guangzhou Development District  and later it will expand its services to the entire Guangzhou City, the Guangdong Province, the whole country and even global enterprises who take Southeast Asia as their centers.