Source – AliExpress
In a significant move, soccer legend David Beckham has been announced as the new global brand ambassador for Alibaba’s international e-commerce platform, AliExpress. This partnership, unveiled on Monday, marks the most extensive global brand ambassador collaboration for AliExpress to date.
The announcement comes at a time when Alibaba faces stiff competition from other China-based e-commerce giants such as PDD Holdings’ Temu and online fashion startup Shein, both of which are rapidly expanding their global presence. Notably, Temu even advertised during the Super Bowl to attract U.S. customers. While the financial details of Beckham’s deal were not disclosed, AliExpress has aligned with several Chinese companies to sponsor the upcoming UEFA European soccer championship, set to begin in mid-June.
AliExpress to Engage Fans with Exciting Promotions
AliExpress is planning substantial investments during the UEFA EURO 2024™ to engage soccer fans globally. The company revealed it will spend millions of Euros on discounts, deals, and other engagement strategies throughout the championship. Among the planned promotions is a contest for AliExpress app users to win tickets to the games.
Beckham expressed his enthusiasm in a statement, saying, “AliExpress is helping fans get even closer to UEFA EURO 2024™ this summer, by offering them great prizes as the action takes place on the pitch.” The former soccer star’s company, DRJB Holdings, reported impressive revenue of 72.6 million pounds ($92.5 million) in 2022, underscoring the significant impact Beckham’s brand can bring to AliExpress.
Alibaba’s International Unit Sees Growth Amidst Challenges
Alibaba International Digital Commerce Group, which encompasses AliExpress, has shown substantial growth in recent times. The international unit’s sales soared by 45% year-on-year in the first quarter of 2024, reaching 27.45 billion Yuan ($3.79 billion). In contrast, Alibaba’s China-focused e-commerce platforms, Taobao and Tmall, experienced a modest 4% revenue growth to 93.22 billion Yuan during the same period. Despite the impressive sales growth, the international unit’s losses also increased to 4.1 billion Yuan, up from 2.2 billion Yuan the previous year. Jiang Fan, co-chairman and CEO of the international unit, attributed these losses to aggressive investments in the Middle East and other emerging markets during the first quarter of the year.
AliExpress has also made significant investments in South Korea, spending about $7 million in 2022 to attract local consumers by offering lower product prices. In addition, AliExpress signed actor Don Lee as its first brand ambassador in South Korea last year. The drive to expand overseas is a common strategy among Chinese companies facing slowing growth in their home market. Alibaba-affiliate Alipay, electric car manufacturer BYD, home appliance brand Hisense, and smartphone company Vivo are among the Chinese sponsors for UEFA Euro 2024, highlighting the broader trend of Chinese businesses increasing their international presence.
