Alibaba to reshape China's logistics marketChina's largest e-commerce firm, Alibaba, announced plans this week to construct a network of supply warehouses throughout the world's most populous country as it endeavors to win market share in China's growing online shopping industry.

Alibaba's executives told reporters on Wednesday that the company will spend anywhere from $3 to $4.5 billion over the next three to five years to build manufacturing warehouses and support logistics firms; Alibaba's enhanced supply chain will enable the company to more quickly deliver goods to consumers, giving it a leg up on its competition.

UOB Kay Hian analyst Victor Yip told Reuters that Alibaba's supply chain investment "will help give clients some reassurance that the things they buy will not be damaged by a third party along the way, and will help improve client stickiness to the Alibaba platform."

Alibaba's chief executive, Jack Ma, asserted that the logistics market in China is in dire need of infrastructure upgrades. "Hopefully within 10 years' time, anyone placing an order online from anywhere in China will receive their goods within eight hours, allowing for the virtual urbanization of every village across China," he said. 
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