AliExpress considers direct commerce and financial products to expand sales in Brazil

A customer views the AliExpress app on a mobile phone in Nairobi, Kenya. March 12, 2019. REUTERS / George Nganga / File Photo

AliExpress, the global e-commerce platform of Chinese giant Alibaba Group Holding Ltd, aims to increase sales in Brazil by offering ‘live commerce’ services, financial services and registering local sellers in its marketplace. its Brazilian official told Reuters on Wednesday.

With sales growth in Brazil of around 130% in 2020, the shopping portal wants to use these initiatives to deepen its ties with its customers in Brazil, which has become one of AliExpress’s top five markets in terms of sales. to the world, said Yan Di.

He said the company plans to invest more in live commerce, referring to a model that involves online entertainment as a tool to drive customer engagement and drive sales. In recent months, it has increased its investment in the marketing of popular reality TV shows in Brazil, such as “Big Brother Brasil”.

He added that AliExpress plans to start offering financial services in the country, adding to options it already offers, such as interest-free installment payment. In doing so, it is tackling a host of other local e-commerce players who have also started offering financial services, including MercadoLibre Inc (MELI.O), Magazine Luiza SA (MGLU3.SA) and B2W (BTOW3. HER).

“Getting into the financial ecosystem in Brazil is a matter of time,” the executive said, declining to say when that might happen. AliExpress, which primarily works with importers, is also preparing to register local sellers in its market “soon,” he said.

Finally, AliExpress is also looking to improve logistics efficiency to reduce delivery times, Di said. He declined to comment on reports that the company may be interested in purchasing Brazilian postal service Correios, which the Brazilian government is eager to privatize.

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