WAL-MART Meets Alibaba Challenge Ali Needs To Beat Amazon First

Foreign media analysis reported that after Alibaba entered the United States, they hoped to beat the largest US retailer, Wal-Mart Stores, and before that, it must defeat Amason, the closest US competitor.

To accomplish this great task, Alibaba must increase its revenue by 10 times and surpass Amazon's revenue of $81 billion 760 million.

It is much easier to achieve this than to increase Alibaba revenue by ten times than WAL-MART.

about

For all this, though these two goals seem to be inadequate, in view of the significant revenue growth of the company in recent years, it will take more efforts to beat Amazon and attract new distributors and new consumers.

This requires building warehousing and distribution networks, maintaining the same competitiveness as Alibaba and maintaining high profits.

China's Internet economy is fiercely competitive, and new competitors are constantly entering and eroding operating profits.

For example, Baidu's operating profit in 2011 was as high as 39.30%, but by this year it dropped to 30.10%. Similarly, Sohu's operating profit dropped from 19.59% to 13.10%, while Youku and everyone's operating profit margin remained negative during the same period.

Meanwhile,

Instead of waiting for Amazon and Alibaba to attract customers, they try to identify Internet sales as their priority.

Wall Street analyst Shelley Banjai (Shelly Banjo) wrote in the research report, "unlike its predecessors, WAL-MART CEO Doug McMillon has embraced e-commerce in advance.

Thanks to the acceptance of e-commerce, WAL-MART has undergone radical changes.

In the field of e-commerce, WAL-MART has been suffering from the widespread product lineup and pricing model of Amazon.

In order to expand its e-commerce market, WAL-MART has been buying online search technology and building storage base.

In 2013, WAL-MART acquired e-Commerce Technology Inc @WalmartLabs.

In addition, it has acquired some start-up companies, including cloud computing website accelerating service Torbit, forecasting intelligent platform Inkiru.

Automation technology OneOps, Tasty Labs, and recently acquired search engine vendor Adchemy.

However, to catch up with Amazon, WAL-MART still has a long way to go. Amazon will remain an online sales leader.