Chinese e-commerce titan Alibaba has teamed up with Yongda, a leading car dealer, in a bid to attract buyers from car showrooms to an online marketplace, as the two companies set up the first Internet car festival, according to an article published on CRIEnglish.com.
According to the report, the two companies have jointly launched an online car sales platform to allow customers to buy high-end cars, such as Cadillacs and Bentleys, online like any common product.
Cai Yongzhi, a senior executive at Alibaba's car division, said that the two companies are teaming up to provide one-stop online-to-offline services.
"Buying a dress online is easy, but buying a car is different, which costs thousands or millions of dollars. We have resolved the problem of online payment, and we offer good quality cars with uniform prices across the country. Customers can simply pay online, then sign the contract and pick up the car offline, " Cai explained.
According to Cai, customers in smaller cities will benefit from the new sales model, as they will have access to many high-priced cars that have not yet entered the local markets. He added that buyers can place their order online and the car will be delivered to the dealership nearest to the buyer within a week.
On the other hand, deputy general manager at Yongda Automobiles Tang Liang said that a new distribution system has been created with this innovation in e-commerce.
"We are launching the first Internet car festival, people no longer have to go to an auto show for new cars. Capitalizing on our nationwide distribution network and Alibaba's big data analysis, we are able to serve custom cars to our consumers," Tang said.
The report said that e-commerce related to car selling has been booming over the past years despite the sluggish car sales in the country last year. More than 50,000 cars have been sold by Alibaba's business-to-consumer platform Tmall on Nov. 11 last year during the annual online sales and promotion day.
Other Chinese technology giants like Tencent and Baidu are also exploring opportunities in car products, as online sales are expected to account for 10 percent of total car sales in China in the near future.
China is now considered the largest auto market in the world for six consecutive years, with nearly 24 million vehicles sold in the country last year, up 7 percent from the previous year, according to data.