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Alibaba Wants to 'Invade' Australia

| Jul 21, 2016 09:56 PM EDT

Alibaba Australia head Maggie Zhou presenting the range of Australian consumer products that are to be made available to the company's costumers.

Chinese e-commerce giant Alibaha is set to expand its services to Australia, starting with putting up a regional office in the Land Down Under.

The company is expected to open its office in Melbourne later this year, which will let it provide support to not only Australian merchants but also those coming New Zealand. Gizmodo reported. Alibaba also plans to attract more businesses in the region to make use of their Tmail and AliExpress services in selling these businesses' items.

According to Alibaba president for global operations Michael Evans, the move indicates just how big a part Australia plays in the company's efforts to reach more global markets. Evans said that Alibaba is used by several major Australian companies, including Bellany's, Blackmore, and Woolsworth, to sell their wares to international customers.

Australian products like baby food, health care products, and wine are very popular with Chinese consumers. The country even bagged fifth biggest seller in Alibaba's Singles Day promotion in November.

On the other hand, Alibaba is also a favorite among Australian consumers who want to purchase products not only from Chinese merchants but also those from other regions. Evans added that many of their Aussie-based users are not even Chinese speakers.

Evans then said that, because of these, they intend to develop their e-commerce business both ways in Australia.

He then revealed plans to open a cloud business in the country aimed at reaching the smaller companies. The president added that more offices are likely to be opened and that they will get more people to add to the personnel they currently have in Australia, The Financial Review reported.

Meanwhile, Evens clarified that the recent changes made by the Chinese government on import taxes and restrictions are not a major contributing factor to their decision. He said that these are simply part of the country's economy gradually moving toward increased domestic consumption.

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