AliExpress, the e-commerce platform under Chinese conglomerate Alibaba (NYSE:BABA), has enlisted former England soccer captain David Beckham as a brand ambassador in its quest to ramp up global sales, competing head-to-head with PDD Holdings’ (NASDAQ:PDD) Temu in the market for affordable made-in-China goods worldwide.
Once a relatively subdued player in cross-border commerce, Alibaba is now aggressively investing to bolster its international sales amid a slowdown in domestic e-commerce growth. Its international division, including AliExpress, has experienced remarkable growth, with revenues soaring by 45% year-on-year from January to March.
In a strategic move earlier this year, AliExpress secured sponsorship for the UEFA Euro 2024 tournament, slated to begin in June. The platform plans to invest millions of dollars in discounts, deals, and engagement activities during the event to attract online consumers.
As part of its marketing efforts, AliExpress will launch an advertisement campaign featuring David Beckham, encouraging consumers to “score more with AliExpress” during the UEFA tournament.
This initiative follows the success of Temu, which aired multiple commercials during the Super Bowl this year, targeting U.S. consumers with the slogan “shop like a billionaire.” According to mobile intelligence firm Apptopia, Temu’s app downloads surged by 34% on Super Bowl Sunday compared to the day before.
Humphrey Ho, U.S. managing partner at digital advertising agency Hylink Digital, noted that both AliExpress and Temu are targeting football fans in Europe and Latin America, a demographic that includes many price-sensitive consumers impacted by inflation.
Despite Alibaba’s long-term aspirations to serve global consumers, it faces stiff competition from Temu, which has rapidly gained popularity since its launch in 2022. Chinese investment management firm CICC estimates Temu’s revenue at $18 billion in 2023.
To enhance its competitiveness, Alibaba is leveraging its strengths, such as offering five-day delivery windows to 11 markets and bolstering its global logistics capabilities through the recent buyback of its logistics arm Cainiao in March.
With a presence in over 100 markets, AliExpress is determined to differentiate itself from Temu and secure its share of the cross-border e-commerce market. The competitive landscape is reshaping the dynamics of cross-border e-commerce from China, compelling AliExpress to innovate and adapt to win over consumers worldwide.
Featured Image: Unsplash
