In advance of a visit to the U.S. next week to meet with potential American partners about bringing more of their goods to the hands of Chinese consumers, Alibaba Chairman Jack Ma took to the pages of The Wall Street Journal today (June 9) to give the world at large a glimpse into the Chinese eCommerce giant’s intentions toward the U.S. market.
“Our U.S. strategy is simple and clear,” Ma’s article leads off. “We want to help U.S entrepreneurs, small business owners, and brands and companies of all sizes sell their goods to the growing Chinese consumer class. Chinese consumers will get to buy the American products they want. This, in turn, will help create American jobs and increase U.S. exports.”
Ma further noted that while Alibaba was built in China, it was in fact “created for the world,” and for connecting the emerging Chinese middle class with a universe of consumer goods that even a decade ago would have seem impossible.
“Today, China’s middle class is equal in size to the entire U.S. population and is expected to double within seven years. This is an enormous number of new consumers with plenty of disposable income. How they spend it is important for America’s small businesses.”
Ma further noted that unlike U.S. consumers, who have all grown to commerce maturity in the context of a fully developed brick-and-mortar retail system, China’s middle class is entering the market for consumer goods from a very different place.
“There are no national retail chains to speak of, and just over two shopping malls per million people — around one-tenth the rate in America. With the widespread availability of Internet access and online marketplaces, like those provided by Alibaba, Chinese consumers have leapfrogged the in-person shopping experience and are shopping online in big numbers.”
And that leapfrogging has seen Chinese customers put up some very big figures when it comes to discretionary spending, according to Ma – with $440 billion spent this year and as much as $1 trillion spent in 2019. And those consumers, said Ma, are ready, willing and able to spend some of that money with American retailers of all stripes.
“Middle-class Chinese are eager to buy goods from abroad. Cross-border purchases by China’s online shoppers have grown tenfold since 2010, from less than $2 billion to more than $20 billion in 2014. And the market includes more than imported luxury apparel and accessories,” Ma wrote.
“Chinese consumers shop online for high-quality goods of all kinds, including fresh food, baby products and cosmetics — and they want these products from places like the U.S. and Europe. They buy seafood from Alaska, pork from Iowa, children’s toys from Rhode Island and sports gear from Oregon and Maryland.”
Ma noted that there will be much work ahead – particularly in confronting counterfeit goods – but that he is confident in the future of U.S. – China eCommerce.
“We are committed to opening the Chinese market to U.S. businesses. I believe in the power of eCommerce to truly level the global playing field, making it possible for the smallest of businesses to reach consumers wherever they may be.”
To check out what else is HOT in the world of payments, click here.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More