Alibaba Enters Russian E-commerce JV
Moscow, June 5, 2019 – Alibaba Group, Russian Direct Investment Fund, MegaFon, and Mail.ru Group have built a joint venture to integrate Russia’s key consumer internet and e-commerce platforms and launch a leading social commerce joint venture in Russia and the CIS.
Alibaba CEO Daniel Zhang said, “This partnership will enable the AliExpress Russia JV to accelerate the development of the digital consumer economy of Russia and CIS countries in ways that no one party could accomplish alone.” He continued, “Together, we are uniquely positioned to offer consumers in Russia and neighboring countries an innovative shopping experience by combining social platforms with commerce, as well as enabling regional brands and SMEs to sell their products locally and globally.”
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As announced in September 2018, the parties agreed to establish a joint venture on the basis of the existing e-commerce business of AliExpress Russia and the strength of Mail.ru Group’s social and digital businesses. The parties have been working closely together to determine the definitive agreements relating to the AliExpress Russia JV based on the key principles set forth in the Framework Agreement signed by all shareholders in September 2018.
The AliExpress Russia JV creates an unmatched value proposition for merchants, consumers and internet users across Russia and the CIS, and accelerates the development of Russia and the region’s growing digital economy by leveraging and integrating the strength and expertise of the new shareholder group.
As part of this social commerce cooperation, the AliExpress Russia JV will promote its services on Mail.ru Group’s platforms through exclusive product integration and marketing solutions.
Alibaba‘s reasoning behind entering the JV was made clear by Zhang “Alibaba’s mission is to make it easy to do business anywhere. This JV is an important part of Alibaba’s international expansion and step toward our goal of supporting 10 million small businesses reach profitability and serving 2 billion consumers around the world”.
Featured photo credit to the Internet