E-commerce: Is Alibaba Acquiring Kaola?


It’s offcial: Chinese e-commerce giant Alibaba is in talks with NetEase to acquire its cross-border e-commerce platform Kaola


According to LatePost Alibaba is close to acquiring e-commerce rival NetEase Kaola. Once the two agree on final details, Kaola would merge with Alibaba’s cross-border arm Tmall. Although both parties involved in the deal declined to comment on the matter, NetEase has been trying to sell its cross-border branch or attract investment over the past few months. Launched in 2015, NetEase’s Kaola is one of the largest cross-border e-commerce platform in China.


Launched in 2015, NetEase’s Kaola is the largest cross-border import retail e-commerce platform in China with a 26% market share in 2018.


A merger between the China’s top two cross-border e-commerce platforms would create a dominant market giant. Experts agree that this deal could not only increase Alibaba’s competitiveness in terms of cross-border e-commerce, but also fend off its rival Pinduoduo, the new merging Chinese e-commerce platform that already intended acquire Kaola. The Shanghai based e-commerce platform wanted to introduce a more convincing and quality e-commerce platform to enhance its reputation, a person familiar with this matter told LatePost.



According to report from research institute Analysys, Tmall International supported by Alibaba took up 32.3% of China’s cross-border e-commerce market in the first quarter this year, followed by NetEase Kaola with 24.8%. Easy to understand that after the acquisition completed, the total market share would reach 57.1%, securing them a leading position in the industry.


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