Obvious efforts to aggressively enter the e-commerce market of neighboring countries were not very impressive to people alibaba (New York Stock Exchange: Baba) Investors on Thursday. They traded shares of the Chinese online retailer, whose U.S.-listed shares ended the day down 3.9%. In contrast, a downturn is S&P500 The index decreased by only 0.3% of its value.
Is it a relapse in Korea?
Nikkei Asia cited a report from South Korea's Yonhap news agency and published an article stating that Alibaba plans to invest $1.1 billion in the country. The aim is to establish a logistics network to compete with the country's e-commerce leaders. Coupang.
Alibaba will clearly leverage its ability to offer low prices and get goods to customers quickly with strong logistics efforts.
Alibaba's AliExpress brand already has a presence in South Korea. The company's plans would significantly expand AliExpress' footprint, including building a logistics hub on a 180,000 square meter site near the capital, Seoul. According to the article, the company is currently selecting a location.
Other plans include a call center with 300 employees and a purchasing department to sell Korean products overseas.
Alibaba has not yet officially commented on the report.
one tough market
Although South Korea is geographically much smaller than China, it has an established and prosperous market economy full of strong competitors. And while Alibaba already has a foothold in that market, it will be up against the country's 300-pound online retail gorilla. Assuming the company follows through on these apparent plans, many investors will be watching to see if it can capture meaningful market share from Coupang.
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Eric Volkman has no position in any stocks mentioned. The Motley Fool has a position in and recommends Coupang. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
Why Alibaba stock plunged nearly 4% today The original article was published by The Motley Fool
