On June 8, 2021, Alibaba launched several new cloud services, including one of Live shopping. Thanks to this new application, e-merchants hosted at Alibaba will be able to sell their products on-stream. The practice of live shopping is very widespread in China and is also gaining in importance in neighboring countries. Specifically, an influencer presents products that can be bought directly during a live broadcast. In short, a form of teleshopping on the Internet.
The group founded by Jack Ma also announced the inauguration of data centers in the Philippines and Indonesia. With the establishment of these two new data centers, Alibaba is initiating future expansions.
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Cloud computing is a key service for Alibaba. It accelerated his Conquer international markets. According to CNBCBy diversifying with popular services in Asia such as live shopping, Alibaba hopes to differentiate itself and compete with cloud market leaders such as Amazon and Microsoft. If Alibaba is ahead of AWS in the Asia-Pacific region with 19.2% market share versus 10.5%, the Chinese giant is lagging behind the American globally.
Apart from the rivalry with the American tech giants, this diversification of activities is taking place in a national context that is not very favorable for Alibaba. In April, the group was fined the equivalent of 2.3 billion euros. At the end of 2020, the Chinese government applied for the restructuring of Alibaba’s financial arm Ant Group. In addition, the national competition with Huawei and Tencent is tough. With this in mind, Alibaba’s chief financial officer said the company will invest “New activities and strategic priorities” over the current financial year.