Jack Ma started 2016 with huge and exciting plans for Alibaba (BABA). The giant e-Commerce business is set to stretch its wings and expand its operations to India, Australia, and across Europe with France. The company is also looking to tap into markets across Southeast Asia such as Malaysia and the Philippines. Alibaba has already invested $1 billion in Lazada in the process gaining a controlling stake in the Singapore-based e-commerce company.

By investing that kind of money in one of the world’s most promising countries in the emerging markets, it clearly shows that the e-Commerce business is taking center stage in this digital age and Alibaba wants to be in the middle of it all. The company’s chief executive officer noted that the acquisition of a controlling share of Lazada provides Alibaba with the ideal platform to launch its growing empire in the Southeast Asian countries.

Alibaba is targeting to reach about $1 trillion in transaction volumes by the year 2020. This target has all the attributes of one of the most common financial terms in investing, the “ballpark figure”—or in other words, a rough but considered estimate. Alibaba expects to cross $500 billion in transaction volume this year after notching $463 in the previous year. However, as utopian as this might sound, the company appears to have a plan in place.

Alibaba plans to enter the Indian Market

Alibaba is planning to lay down a marker with its plans to expand across India. Being the fastest growing major economy in the world, India offers the perfect opportunity for companies like Alibaba, eBay (EBAY) and Amazon (AMZN) to thrive.

The company plans to enter the Indian market through a series of acquisitions. And the first company on its list is ShopClues.com. This company is currently valued at $1 billion. Alibaba’s ultimate goal is to merge ShopClues with Paytm – India’s largest mobile payments company – where it already owns a stake. Alongside Paytm, Alibaba also owns shares in Snapdeal, also a mobile payment company in the country.

These kinds of moves will definitely strengthen Alibaba’s grip in the Indian Market and help the company compete against Amazon and eBay globally.

Why India?

In addition to being one of the fastest growing economies, India’s e-Commerce marketplace is also on the rise. This is primarily due to the increased per Capita income as well as internet penetration across the country. Additionally, the country has a projected 2 digit e-Commerce growth rate, a figure that has continued to intrigue investors.

Alibaba is also making moves in Australia and Europe

Alongside India, Alibaba plans to diversify its resources across the pacific onto Australia. The company is already making plans of opening an office in Melbourne by close of 2016. This move will certainly increase the number of sellers on the company’s e-Commerce platform. This will then allow for exports and imports to move across the continents with much ease.

Australia also offers high digital penetration with over 80% of its population using digital media to make payments. However, the country’s Achilles heel is its population. It has only about 12 Million digital shoppers. Therefore, Alibaba’s move is not only met by stiff competition from companies like Amazon, and eBay in Australia, but also the small country’s population. This is not all bad though because the company plans to expand beyond its core business.  

The company is also contemplating moving to Europe and is eager to launch its mobile payment platform, AliPay, there. This platform already has over 4 million users and is still looking to increase this number by partnering with Ingenico – a French payment processor. When the partnership is confirmed, AliPay will link through hundreds of European stores giving Chinese tourists visiting Europe a preferred payment option.

Conclusion

In summary, Alibaba’s future looks positive and this has been confirmed by several analysts who hold a “Buy” rating on the stock.  The company is also witnessing an upward trend in its key valuation metrics including revenue and profits which will continue to support its global expansion campaign.

Alibaba is also looking to widen its addressable market by exploring opportunities outside of its core business. These will augment its e-commerce activities in the long-run which could push the company to become the world’s largest player in the e-commerce industry.