When Jack Ma traveled to the US to hunt for more business, top investment representatives came out in what is hinted as an indicator of things to come. Talking to thousands of small and medium business investors, business analysts, and consumers, Ma was greeted by enthusiastic faces looking for new ways of doing things.
Why Alibaba and China?
With an already charged audience, Ma did not miss his words. “You miss China, you miss the future,” he told the conference. Highlighting that the huge US market needs to tap into the Chinese market, it appears that new partnerships are already in offering and could cause huge market disruptions.
Today, Chinese consumers are bounder-less. They shop from anywhere in the world, and the retail online spending is expected to grow steadily and hit $245 billion by 2020 (AliResearch and Accenture).
eMarketer reports that China boasts of the biggest share of e-commerce sales globally. This sale is expected to hit 37% by 2020. With over 500 million clients in Alibaba platforms who are looking forward to accessing American products, the online business has a huge potential for growth.
Alibaba will lever local growth to drive global economic development
Alibaba focus on the US market is unique. While many might think that Alibaba is simply a new e-commerce store, Ma insisted that it is different. Just like back in China where consumption has anchored rapid growth, so will be the impact in the US. Alibaba targets to boost economic growth that will ultimately grow the global economy.
Within a span of 5 years, Ma said he was confident that Alibaba would create over 1 million jobs as small producers access the Chinese and Southeast Asia market. He said they have already created over 20,000 jobs in California alone. This model is likely to make Alibaba a new brand in the US to the surprise of many.
Local brands eyeing Chinese market are already looking for ways to link with Alibaba. McPheters, the CEO of Stadium foods explained that his company is out seeking for a partnership that can help it take the products to China. Another investor, Sam Wolf, argued that Chinese market is huge and it is a ripe opportunity to spur faster growth.
A knack for fighting counterfeits
Ma’s focus on fighting counterfeits was evident with his emphasis on employing every resource and effort in addressing the issue. He pointed that they have invested heavily in tracking people who supply counterfeits to its platform and will always root them and their products.
Alibaba’s effort to protect intellectual property right will include both offline operations and law enforcement authorities to address the counterfeits completely. This commitment has inspired special attachment between the store and the Americans. It is a bond that will continue growing and no promptly eat into the market share of existing stores.
This grand reception has created a new way of looking at things and the Americans already love it. From the commitment to deliver quality to delivering greater value, top Giants in the US such as Amazon will no doubt have to rethink their strategies.