AliExpress, the e-commerce platform owned by Chinese conglomerate Alibaba, has enlisted former England soccer captain David Beckham as a brand ambassador to enhance its global presence. This strategic move aims to bolster AliExpress's competitive stance against rival PDD Holdings' Temu, which has been aggressively promoting its low-cost, China-made products worldwide.
Previously a relatively modest player in the cross-border e-commerce sector, Alibaba is now making significant investments to expand its international market share, particularly as domestic e-commerce growth slows. The international division of Alibaba, which includes AliExpress, has become its fastest-growing segment, with revenues increasing by 45 percent year-on-year from January to March.
In addition to signing Beckham, AliExpress has secured a sponsorship deal for the UEFA Euro 2024 tournament, set to begin in June. This sponsorship will involve substantial investments in discounts, deals, and consumer engagement efforts to draw in online shoppers. The advertising campaign featuring Beckham will coincide with the UEFA tournament, with the slogan "score more with AliExpress," aiming to capitalize on the event's massive viewership.
This initiative follows a successful campaign by PDD Holdings' Temu, which aired multiple commercials during the Super Bowl, encouraging American consumers to "shop like a billionaire." The result was a significant boost in app downloads for Temu, with a 34 percent increase on Super Bowl Sunday compared to the previous day, according to data from mobile intelligence firm Apptopia.
Humphrey Ho, the US managing partner at digital advertising agency Hylink Digital, noted the strategic alignment in targeting football fans. He highlighted that soccer fans in Europe and Latin America share similar demographics with American football fans in North America, often comprising price-sensitive and inflation-impacted consumers. This demographic targeting is a key reason behind both Temu's and now AliExpress's focus on football audiences to drive their global expansion efforts.
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