Pakistan has a rapidly developing e-commerce industry. Ever since the introduction of 3G/4G services, the number of potential consumers has been going up exponentially. Despite this, many e-commerce players have found it hard to enter the playing field. With the help of a highly experienced e-commerce giant like AliBaba, Pakistan’s e-commerce industry can finally find the nourishment it needs to grow stronger.
AliBaba is the world’s largest e-commerce group. Despite it’s headquarters being situated in Asia, it has costumer reach from all over the world. This includes retailers and regular customers. In 2016, AliBaba had $248 bilion worth of online transactions. They were also valued at $215 billion. These numbers are way higher than all other e-commerce players.
AliBaba has played an important role in the strengthening of manufacturing industries. This is apparent in China, as 80% of its online shopping market is controlled by the giant. It’s important to know that China is the world’s largest online market, making AliBaba’s accomplishments even more amazing.
But what will AliBaba get by making an entrance in Pakistan? Well, most developed countries already have a very saturated market when it comes to e-commerce. It doesn’t make sense to go head to head in competition when you could simply tap into the resources of a developing country such as Pakistan. The current competition in Pakistan doesn’t provide services similar to AliBaba’s, which results in a lot of orders from overseas despite the tiring transaction issues.
Pakistan not only has a huge number of potential customers for AliBaba, but it also lacks a proper online payment infrastructure. AliPay is the group’s successful online payment platform that could become hugely popular in Pakistan. There have been attempts at getting a proper e-Payment service running but customers don’t fully trust online transactions yet; and most banks don’t trust costumers to protect themselves. AliPay has enough experience in the field to know how it could properly execute the launch of its service in Pakistan.
With that being said, AliBaba may be opening the gate to a gold mine for themselves if they actually do attempt the enter the market. They have already met with Ishaq Dar, the Finance Minister of Pakistan; and talks suggest they may be looking into purchasing Daraz.pk for around $150 million.