Alibaba is warning China’s retailers that it plans to revolutionize the nation’s retail sector. According to Internet Retailer, in a letter to shareholders sent on October 13, CEO Daniel Zhang outlined plans to make product manufacturing, distribution and service more efficient by “upgrading” traditional systems and processes. “The most important opportunity on the horizon is not growing online sales in isolation but rather helping traditional retailers upgrade into a brand new retail model…The consumer retail industry as a whole is experiencing a radical disruption driven by digital transformation,” said Zhang.
Jack Ma, CEO of Alibaba, has previously emphasized that retail companies should respond to the needs of internet users. Ma stated last fall that cloud-based infrastructure and big data are two areas where Alibaba expects remarkable growth. Ma told investors, “Data has already become the new ‘natural resource’ that is as vital as oil and electricity. Cloud computing is the new ‘engine’ powering commercial operations.”
Here are the data
$4.5 trillion | The estimated worth of China’s traditional retail industry
$991 billion| The amount in gross merchandise volume (GMV) that Alibaba would have to sell to achieve its goal by 2020, GMV was $463 in 2015
2 billion | The number of customers that Jack Ma, Chairman of Alibaba, plans to reach in China in the next 20 years
1 billion | The number of customers that Alibaba currently serves in China
10 million | The number of profitable businesses Alibaba plans to support globally in the next 20 years
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