Despite being among the world's leading online retailers, Alibaba deems itself to be in "startup mode" in Europe, as it prioritizes the development of e-tail market innovations set to change the online retailing landscape over the next decade.
Alibaba Europe general manager Terry Von Bibra understands the Chinese e-tail market giant has the capability to engage in high-profile deals with some of the biggest European retailers such as Sainsbury's and Marks & Spencer, although it equally understands the need to invest and engage.
Nonetheless, Alibaba opts not to rest on its laurels. Von Bibra himself acknowledged that the failure of foreign companies who sought to do business in China stems from the fact that they did not invest and engage enough on money, time, and people, Retail Week reported.
Doing business in China has a lot to do with its cultural peculiarities. Yibada reported that intensive engagement, which involves learning the language, nurturing trust, and observing hierarchy and collectivism, allows foreign businesses to succeed in the Chinese market.
As Von Bibra draws parallels from foreign companies' Chinese experience, he noted that Alibaba is doing all that it could to avoid treading along the path of those companies, as it opts to run through the complications of the European market with a keen eye on innovation.
Among the innovations that Alibaba has introduced involve the application of virtual reality to online retailing. Macy's, one of the online retailer's retail partners, allowed Chinese shoppers to view its products through a virtual reality shopping experience from their electronic gadgets.
In explaining Alibaba's decision to delve more on innovations, Von Bibra emphasized the importance of social media among consumers. He noted that social media's influence play a significant role in shaping Chinese shoppers' preference, hence the need to cultivate that through e-tail market developments.