CHINA TOPIX

03/29/2024 05:32:26 am

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Alibaba’s Jack Ma Remains Positive They Can Compete Without Invading The U.S. Market

Jack Ma

(Photo : Reuters) Jack Ma made sure Alibaba is more about helping small businesses rather than compete with global brands such as Amazon and eBay.

Jack Ma made sure Alibaba is more about helping small businesses rather than compete with global brands such as Amazon and eBay.

In his speech at the Economic Club of New York, he said that their local middle class  consumers are about as many as the United State's entire population, making it very reasonable for them to not hurry in expanding their business in the United States. Instead, their strategy to invade the west is through invitations and much urging from small and start up businesses in the U.S to invest and sell their products in China.

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Ma also mentioned the success of Tmall's experimental run, where they promoted a small introduction to a U.S.-based fresh food supplier - the "Alaskan Salmon." The sale was a hit with its Chinese consumers that they owed to them to expand and cover a more variety of fresh foods in their lineup. The popularity of Seattle Cherries can also be credited to the company's effort to support small U.S. businesses, meaning to expand and invade the Chinese market. Ma's firm grasp on the local market has reportedly somehow eased the worries of rivals that their Asian counterpart is not nearing any decision to expand to the west.

In his speech, he said, "until today, nobody believed Alibaba can survive because you're free, you're tiny. When I IPO'd, they would say, ah you're Alibaba, just like Amazon." He stressed out that Alibaba's difference from Amazon is that they do not buy and sell, instead, they help small businesses buy and sell merchandise. Where shipping is concerned, Ma also said that the act of delivering the packages is not even Alibaba's responsibility, instead they owe it to the 2 million people who help them deliver 30 million packages per day.

Even in the absence of their own warehouse, Alibaba has managed to incur 350 million customers in their site, to buy and sell their products. With Alibaba's meager start, they have already earned $390 billion and expect it to increase in the coming years. The reason for this figures is that he compared how E-commerce in the U.S. remains an E-commerce, where as in China, E-commerce becomes a livestock.

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