Alibaba Partners with Rocket Firm for Lightning-Fast One-Hour Deliveries: The Future of E-Commerce?

Alibaba teams up with rocket manufacturer for delivery
XZY-1: sea-landing and reusable rocket
Alibaba.com initiates recruitment drive in South Korea

Alibaba, the global e-commerce giant originating from China, has announced plans to collaborate with a Chinese rocket development company to launch a service that promises delivery of products anywhere in the world within just one hour.

According to the South China Morning Post (SCMP), on the 1st of the month, Beijing-based aerospace startup Space Epoch is set to conduct delivery-related experiments in collaboration with Alibaba’s online shopping platform, Taobao. This collaboration was reported shortly after Space Epoch was officially announced on its WeChat account on March 31st.

The rocket to be used in these experiments is known to be a reusable rocket capable of stable sea landings. The cargo hold of the sea-landing rocket XZY-1 is reported to have a capacity of up to 120 square meters, enabling it to carry payloads of up to 10 tons.

Space Epoch expressed optimism about the endeavor, stating that while it may be challenging, it will be a significant historical exploration. The company, specializing in developing reusable rockets since 2019, has received substantial investments exceeding 300 million yuan (approximately 558 billion Korean won) from investors such as GSR Vision Capital and JinSa Capital.

Alibaba also commented on the project, likening the initial public unveiling of their efforts on April Fools’ Day to a joke due to its vast and ambitious nature. Last year, Alibaba made strides in the delivery sector by launching a ‘5-day delivery service’ in China and expanding its service areas to countries such as Germany, France, Portugal, and most recently, the United States amid the ongoing global delivery war.

Meanwhile, Alibaba Group is actively recruiting talent, targeting the Korean market.

Previously, AliExpress (Ali) aggressively hired experienced personnel from the distribution industry to secure the domestic market. Subsequently, Alibaba.com, renowned for its business-to-business (B2B) commerce between international companies, has also begun the search for experienced professionals to handle its domestic operations.

According to sources in the distribution and service industries on the 3rd, Alibaba.com has announced ongoing recruitment for experienced positions such as ‘Category Operations Manager,’ responsible for products manufactured in various East Asian countries like beauty and food, and ‘AM’ (Account Manager), responsible for foreign trade services. Especially for AM positions, responsibilities include identifying new customers in the domestic market, swiftly analyzing the Korean market and industry trends, and providing suitable services tailored to the needs of existing customers.

Experts interpret Alibaba.com’s move as an effort to strengthen management and distribution services for small and medium-sized enterprises (SMEs), the major Korean client, despite not establishing a domestic corporation.

Alibaba.com, a subsidiary of the Alibaba International Digital Commerce Group (AIDC), is actively recruiting Korean talent for its business-to-business (B2B) division, a dedicated platform for import and export transactions used by over 47 million people in more than 200 countries worldwide.

Recently, Alibaba.com has supported the successful export of domestic small and medium-sized enterprises (SMEs) in Korea. The company actively promotes the “Korean Industry Leader Project” and participated in events like the “InterBattery 2024 Expo” held in Korea last month to increase its influence in the domestic market.

Experts interpret this recent hiring spree as Alibaba Group’s significant investment to expand its business in Korea and to counter the influence of other Chinese e-commerce companies like Temu in the B2B sector.

Ali, the overseas business-to-consumer (B2C) division of the Alibaba Group, has announced large-scale recruitment for various positions, including product planning, marketing, sales, promotion, and leasing, to ensure successful operations in Korea by May 13th.

Alibaba has pursued aggressive marketing strategies to attract top talent, such as advertising in subway stations across Seoul. There have even been reports of the company offering the highest salaries in the industry to attract talent.

With the recent downturn in the distribution industry leading to decreased sales, there is speculation that employees from major offline and online retailers like Emart and 11th Street, who are undergoing voluntary retirements, may join Alibaba Group’s subsidiaries in business-to-consumer (B2C) and business-to-business (B2B) sectors.

As Alibaba (B2C) continues to recruit experienced professionals, the number of domestic corporate employees is rapidly increasing. In response to the expanding scale of its domestic operations, Alibaba has announced plans to relocate its Seoul office from its current location in Namsan, Jung-gu, to the Parnas Tower in Samseong-dong, Gangnam-gu.

However, there are concerns in some quarters about Chinese companies dominating the Korean market. There have been instances where B2C companies like Ali and Temu have sold counterfeit products or sent empty boxes without merchandise.

In response, the Korea Customs Service announced in March that it would consider strengthening inspections for counterfeit goods during the customs clearance for overseas direct purchases. This underscores the need for regulations on the growing presence of Chinese e-commerce companies in the Korean market.

Photo Source: News1, provided by Alibaba.com