Alibaba positions itself as perfect platform for brands entering China
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Alibaba positions itself as perfect platform for brands entering China

In another of today’s newsfeed stories, we reiterated something we’ve been saying for years: China is a massive power when it comes to global consumption and the future of retail. But here is a corollary fact: if China is a big part of the future of global retail, then helping foreign brands operate in China has the potential to be a massive business. That’s where Alibaba comes in.

Businesses from video gaming to cosmetics are finding firm footholds in the Chinese market – but going it alone is almost impossible. Apart from language and cultural barriers (which are significant), western brands are, in many cases, barred from operating legally in the country. Now, Alibaba, which has a long history of catering to brands looking for a sales platform in China, is pushing its service offering further with the release of a new initiative called A100.

Alibaba’s share price has appreciated by 9% so far this year

graph 15 alibaba

Source: Yahoo Finance

At its inaugural “Alibaba ONE Business Conference” in Hangzhou, Alibaba Group’s CEO Daniel Zhang, said: “With over 600 million monthly active users and nearly 30 business units specializing in enterprise services including tech-driven retail, mobile payment, digital marketing, media entertainment, IT infrastructure and more, Alibaba is the leading partner for businesses within China and around the world to capitalize on the growing consumption by China’s middle class. The A100 initiative, powered by the Alibaba Operating System, will be a one-stop shop for businesses to access a comprehensive range of enterprise services in the digital era.”

Alibaba’s platforms include retail juggernauts Taobao and Tmall, payment service Alipay, cloud computing products from AliCloud and more. That’s an attractive offering from the undisputed king of Chinese ecommerce… and as the country’s middle class continues to exercise its spending power, its set to become even more so.

Disclosure

Dominion holds Alibaba in its Global Trends Managed Fund.


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