AliExpress recruits David Beckham as brand ambassador to boost global sales

Alibaba Group Holding Ltd’s (阿里巴巴) AliExpress (全球速賣通) e-commerce site has hired former England soccer captain David Beckham as a brand ambassador, catching up with rival PDD Holdings Inc (拼多多) Ago in the battle to sell cheap manufactured goods to the world in China.

Alibaba is currently investing aggressively to boost global sales amid flagging domestic e-commerce growth. Its international division, which includes AliExpress, is its fastest-growing unit, with revenues up 45 percent year-on-year in the January-March period.

Earlier this year, AliExpress also became a sponsor of the UEFA Euro 2024 football tournament, which starts next month. This would mean investing millions of dollars in discounts, offers and engagement to attract consumers online.

Photo: AP

The advertising campaign featuring Beckham will run in conjunction with the UEFA tournament and will encourage consumers to “earn more points with AliExpress,” the e-commerce platform said in a statement yesterday.

This follows the success of Temu, which aired multiple Super Bowl ads this year encouraging American consumers to “shop like a billionaire.”

Temu app downloads were up 34 percent on Super Bowl Sunday compared to the previous day, mobile analytics company Apptopia reported.

“Soccer fans (in Europe and) Latin America are a similar demographic to American soccer fans in North America. These will generally include many price-sensitive and inflation-affected consumers,” said Humphrey Ho (何俊軒), US managing partner at digital advertising agency Hylink Digital Solutions Co Ltd (華揚聯眾), on Temu and AliExpress’s decision to focus on football and football fans.

Alibaba has long viewed the overseas market as a potential source of money.

The company’s goal is to serve 2 billion consumers worldwide by 2036, founder Jack Ma (馬雲) said in 2017. However, it must catch up in many markets it has ceded to rival Temu.

Temu, which sells $5 earbuds and $10 dresses among other items in more than 60 global markets, has grown in popularity since its 2022 launch.

Investment management firm China International Capital Corp (中國國際金融) estimated Temu earned $18 billion last year.

To better compete with rivals, Alibaba is leveraging its competitive advantage by offering selected products within five days in 11 markets, supported by investments in global logistics.

AliExpress is present in over 100 markets, and Alibaba has the will and money to fuel AliExpress’s growth, said Jianggan Li (李江玕), founder and CEO of Momentum Works (墨騰創投), a Singapore-based venture and insights company.

Most importantly, the competitive landscape is forcing the issue, changing the dynamics of cross-border e-commerce from China, Li said.

“AliExpress needs to find a way to compete with and differentiate itself from Temu” to gain market share, Li said.

“I mean, there’s no other way,” Li added.