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Alibaba Acquires Stake in Turkey’s E-commerce Industry
China and Turkey come together in Alibaba’s latest acquisition, as it purchases a stake in Turkey’s biggest e-commerce platform, Trendyol.
Alibaba Group and Trendyol have confirmed the deal, but are yet to disclose any financial details. Alibaba reportedly plans to help Trendyol accelerate its online growth, giving the Turkish business access to its technological advancements and logistical expertise.
According to the two companies, Turkey has a young, tech-savvy population, which indicates strong future growth potential as consumers begin to adapt to the use of online marketplaces. However, despite this potential, online players currently only hold 3.5 percent of the country’s retail sales.
“There are significant opportunities for Trendyol to help foster the transformation of the region’s retail infrastructure,” representatives form Alibaba Group and Trendyol said in a statement.
According to the Turkish Informatics Industry Association, Turkey’s e-commerce industry was worth 42.2 billion liras (US$9.19 billion) in 2017, up from 30.8 billion liras in the previous year.
Michael Evans, the president of Alibaba Group is excited about the new partnership between Alibaba and Trendyol, and says the Turkish e-commerce giant’s founders will continue to lead the company, with the support of Alibaba.
“Turkey is an exciting and important market as we assess the development and proliferation of digital economies in the region and around the world,” Evans said.
“We will continue to support Turkish brands, merchants and manufacturers in their journey to become truly global.”
The Founder and CEO of Trendyol, Demet Mutlu, echoed this sentiment, saying the two companies have similar beliefs and goals.
“We are very excited about this partnership. The two companies share a very similar culture, values, and both have huge ambitions for the digital economy,” she said.
Mutlu also said the new partnership will better equip the business to “help Turkish brands, merchants and manufacturers to reach hundreds of millions of shoppers globally”.
Although, despite expansion plans, Mutlu is confident that Trendyol will continue to do what it does best – “Serve our customers and contribute to the development of the digital economy in Turkey and the broader region”.