Alibaba's Chinese high street entry could be worth over $2 billion
Ecommerce giant Alibaba is leading a bidding war for Chinese retailer Intime in a move that will enable the online company to have a significant physical presence on highstreets across the country. Sources have indicated that the deal could be worth as much as $2.6 billion.
Commentary has also suggested that buying Intime will enable Alibaba to bring its innovation to the high street retail industry at large – a move similar to Amazon’s bricks and mortar stores. Alibaba bought a $692 million stake in Intime around three years ago, but is reportedly trying to buy it outright and delist it from the Hong Kong stock exchange. Intime controls 29 department stores and 17 shopping malls spread out across urban China.
“Our combination with Intime will enable us to tap into the long-term growth potential of a new form of retail in China powered by internet technology and data,” Alibaba CEO Daniel Zhang commented.
“We don’t divide the world into real or virtual economies, only the old and the new. Those who cling on to the old ways of retailing will be disrupted, and brick-and-mortar businesses will be able to create value for consumers if they are integrated with the power of mobile reach, real-time consumer insights, and technology capability to improve operating efficiency.”
SOURCE: [Net Imperative]