Alibaba Group Holding is expanding its business foothold in Mongolia, as the Chinese e-commerce giant’s wholesale marketplace 1688.com joins forces with local technology group Intelmind to launch a new platform.
The new online marketplace, ShoppyHub.mn, aims to offer “millions of products” sourced from 1688.com’s merchant network, providing Mongolian consumers and business clients with products from Chinese manufacturers, Intelmind said in a statement on Wednesday announcing the strategic partnership.
The site will allow online shoppers in Mongolia to consolidate purchases from other regions into a single order and delivery, with most packages reaching customers in seven to 10 days, according to Intelmind.
The collaboration comes as Alibaba, owner of the South China Morning Post, banks on 1688.com as a new growth engine. CEO Eddie Wu Yongming, who took the reins last September, has planned for the platform to undergo “strategic-level innovation” to “face the larger market with [its] own strategies”.
Launched in 1999 when Alibaba was established, 1688.com is one of the company’s earliest e-commerce platforms. Photo: Handout
Alibaba has recently started selling some 1688.com products on Taobao, its flagship consumer-facing online shopping platform, to tap a wider pool of users and test products in a larger market.
Meanwhile, the Hangzhou-based giant is also expanding its overseas e-commerce operations to seek new customers amid weak consumer sentiment at home.
The company plans to invest US$1.1 billion in South Korea over the new three years to grow its e-commerce presence by building new infrastructure and supporting local merchants, according to a report by Seoul-based news agency Yonhap in March.
Mongolia, known for its vast mineral resources such as coal, copper and gold, is seeking to diversify its economy in recent years. Part of the initiative involves enhancing digital infrastructure and connectivity, with e-commerce emerging as a key driver.
The country of 3.4 million people relies on China for investments, while China sees Mongolia as a connector for trade with Central Asia.
Intelmind’s new platform, which strives to facilitate cross-border trade opportunities, “underscores our dedication to driving innovation and fostering economic prosperity in Mongolia”, said company co-founder and CEO Mendbayar Tseveen.
Ulaanbaatar-headquartered Intelmind, which owns or invests in a portfolio of 18 tech companies, in 2017 launched its own online marketplace Shoppy.mn. It has since become one of the major e-commerce platforms in the country.
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