China’s e-commerce giant, Alibaba, has been growing at a very rapid pace. The company already brings in billions of dollars in annual revenues and now, Alibaba has cited plans of tripling its revenues by 2016, thereby overtaking Walmart and becoming the world’s largest retail firm.
Currently, the volume of transactions that Alibaba handles is more than that of Amazon and eBay combined. The company is already the largest retailer in China and has been expanding to other parts of the world.
Alibaba CEO, Jonathan Lu, recently revealed that he aims to triple the company’s volume of transactions by 2016. In terms of solid numbers, this means that Alibaba is targeting for a transaction volume of $490 billion in the next three years. If it is able to achieve this target, Alibaba may well be able to surpass Walmart and become the world’s largest retail firm.
To this end, Alibaba intends to spend a huge $16 billion on developing the logistical support in China. In recent times, a number of other retail firms have cropped up in China, posing competition for Alibaba. With the planned $16 billion investment, Alibaba will be able to garner a huge advantage over such adversaries.
Moreover, the company intends to offer more international services and take its brand overseas. This phase is already being enacted, with Alibaba now offering its services in Singapore as well. But the big break for Alibaba would be when it is able to muster a strong presence in regions such as US and Europe, which continue to be Walmart’s key strength.