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Alibaba (BABA) Unveils Latest Solutions to Help Global Brands

Zacks.com logo Zacks.com 1/20/2021

Alibaba Group Holding Limited’s BABA online marketplace, which is open for international brands namely, Tmall Global, unveiled the latest solutions in a bid to extend support to global merchants, especially small and medium ones during the ongoing pandemic.

The latest solutions announced at the 2021 Tmall Global New Seller Virtual Summit are focused on helping the global merchants to launch their brands on Tmall Global seamlessly, thus, aiding them in countering the disruptions that happened to their businesses due to COVID-19.

Overseas brands can register for Tmall via the new self-service portal. Additionally, Alibaba strives to offer tailored consultation, operations, content support and other value-added services to these brands on the heels of its new suite of solutions.

Rationale Behind the Move

We note that the latest move is likely to bring social benefits as it will not only benefit the overseas merchants but also customers of China as well as Tmall itself.

The new solutions will provide an opportunity for the overseas merchants to foray into the booming e-commerce market of China. This will be a major positive for the businesses impacted by COVID-19 around the world.

This, in turn, will expand the product offerings to customers in China, who will get access to international brands via the latest move.

Meanwhile, Tmall will be able to deliver an enhanced shopping experience on the back of the above-mentioned benefits, which will drive its customer momentum.

Additionally, Alibaba’s latest move will bolster the inflow of foreign brands into China, which is expected to drive growth further in the China retail space. Moreover, the move is likely to give a boost to the consumption of imported goods in China.

Alibaba Group Holding Limited Price and Consensus

 

chart, line chart: Alibaba Group Holding Limited Price and Consensus © Provided by Zacks.com Alibaba Group Holding Limited Price and Consensus

Alibaba Group Holding Limited price-consensus-chart | Alibaba Group Holding Limited Quote

Wrapping Up

Notably, the latest announcement of new solutions bodes well for Alibaba’s continued focus toward bolstering its retail strategies.

Also, it is in sync with the company’spersistent efforts to add value to consumers and sellers through the consumer segment, product enrichment and platform innovations.

We believe that the move will increase the company’s e-commerce strength, which has become one of the major growth drivers.

This, in turn, will benefit the financial performance of Alibaba in the near term as well as in the long haul.

Zacks Rank & Stocks to Consider

Currently, Alibaba carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the retail-wholesale sector are JD.com, Inc. JD, Target Corporation TGT and Dollar General Corporation DG. All three stocks carry a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.

Long-term earnings growth rates for JD.com, Target and Dollar General are currently pegged at 51.2%, 8.49% and 13.68%, respectively.

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