Jack Ma talked at length about the “China opportunity” at the company’s Gateway ’17 event in Detroit. The hour-long video of Jack Ma can be watched on YouTube:
Livestreaming is a source of inspiration and entertainment for Chinese consumers, especially for those who live in lower-tier cities that have limited other sources of entertainment. In a shopping context, a number of fashion “cewebrities” (people who gained their fame online) are popular in China. Many host livestreaming sessions in which they recommend different products and answer live questions from the audience. Top cewebrities have millions of followers on social media and tens of thousands of viewers for their livestream sessions.
Interestingly, the relationship between Chinese consumers and foreign brands seems to change signifcantly:
Chinese consumers are becoming increasingly sophisticated. Their motivation for buying foreign brands is transitioning: many no longer seek to represent their socioeconomic status through such goods, but to express their individuality. As a result, they are increasingly interested in niche brands and retailers that offer unique products.
This creates a huge opportunity:
Stadium Goods is a New York–based premium sneaker and streetwear store that offers hard-to-find collectible items. The company launched its Chinese e-commerce flagship store on Alibaba’s branded site, Tmall Global, in 2016. Its online store in China now generates more business than its US operation does, and sales on Tmall Global are growing exponentially, according to CEO and Cofounder John McPheters.
And last not least, a succinct description of the Chinese market, as compared to the West:
Ma calls China “a country on mobile devices,” as compared with the US, which is more of a country on wheels. By 2020, 60 cents of every dollar spent online globally will come from China, according to eMarketer, and cross-border e-commerce in China will grow sixfold from 2015 through 2020, to $245 billion, according to AliResearch and Accenture.
Here is Jack Ma, interviewed by Charlie Rose:
Ma also talked (obviously, thanks to Alibaba’s marketplazes’ size and consequential, ongoing challenge) about counterfeits at the event.
More on this topic:
* Alibaba Wants to Dominate in Russia Too: AliExpress Expands in Russia With One-Day Delivery
* Alibaba’s Lazada Launches the First Real Amazon Prime Competitor With LiveUp
* Alibaba’s Alipay Is Under Fire from Tencent’s WeChat Pay in China
* The Big Three (Amazon, eBay, Alibaba) at Shoptalk 2017
* Amazon: 3 Million Packages a Day, Alibaba: 12 Million Packages a Day
* Who -Besides Alibaba- Can Challenge Amazon’s Tech Driven Online Retail Position?