Why Do Brands Embrace Alibaba?

In one sentence, Alibaba can help build up the brand for the Chinese market, as the company tried to demonstrate at the investor relations day:

Maserati campaign on Alibaba

One step before that, a huge distribution channel and partner like Alibaba can also actively help with product validation for the Chinese market:

Pampers rapid product validation

Alibaba product validation solution

The bigger the online retailer, the more likely it is they can help brands in more ways than just sell one item by them at a time. Amazon and Zalando both have sophisticated media solutions or are in the process of building them out. Alibaba is no exception here. The only difference is the vastly bigger market Alibaba is operating in. (One consequence is that, statistically speaking, things like product validations are easier to pull of because it is easier to get the necessary sample size.)

Alibaba also prides itself with getting out of the way:

Alibaba and brands

Here’s the brand presentation (PDF) from this year’s investor relations day.

More on this topic:

%d bloggers like this: