This action will enable IKEA to be more accessible to consumers in China, given the fact that the new virtual store on Tmall would offer some 3,600 IKEA products.
Through its partnership with Alibaba, the company aims to further enhance its service offerings and expand its reach, according to company representatives. This move is part of IKEA’s plan of widening its global reach. The store also launched ecommerce services in more than 50 markets, including Singapore.
Alibaba's commerce business, encompassing its retail and wholesale ecommerce as well as logistics businesses, contributes the bulk of its revenue. It added 18 million active consumers to its retail marketplaces over the previous quarter to reach 711 million, while mobile active users totalled 824 million, up 39 million from the previous quarter. More than 60% of its new annual active consumers were from China's less developed areas, according to Alibaba.
However, the Chinese ecommerce giant warned that the ongoing coronavirus epidemic could present challenges, in the short-term, to the company's overall business development. In February 2020, Alibaba rolled out some 20 measures, including waiving some fees across its online platforms, including Tmall, to help affected merchants ride through the epidemic.
