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Outside Alibaba's Headquarters in China

Alibaba spends $4.6B to Acquire 20% stake in Suning

The Chinese e-commerce giant, Alibaba has reportedly bought a 20% stake in Chinese consumer electronic retail giant, Suning for $4.6 billion so that it can maintain its dominance in the e-commerce sector and this will help it to eliminate competition.

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By acquiring 20% stake in Suning, Alibaba first saw Suning as a threat because of how it was easily dominating the market especially in electronics such as smartphones.

Currently the e-commerce giant, has a vast network of outlets which are spread in almost every town in China and the company will now take some control over Suning’s 1600 stores located in over 280 cities across China.

When we look out of the bracket, Alibaba has two important reasons as to why it bought a 20% stake from Suning.

it will take its business further by immigrating from online to offline consumer base and this will be its new trend of catering.

On Friday, Alibaba closed its stock at $78.82 which was 0.18% and on Monday it increased up by 1.25% in pre- trading hours

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