Alibaba's Gateway '17 Reveals Focus On Small Businesses
Zacks Investment Research | Jun 20, 2017 11:50PM ET
Alibaba Group Holding Limited’s (NYSE:BABA) Gateway '17 confab is underway in Detroit, an event dedicated to small businesses, entrepreneurs and farmers. The event is aimed at making them aware of the opportunities and ease of selling in China and attracting them to its platforms.
Attended by around 3,000 entrepreneurs, the confab reveals important insights about Chinese consumers, growing industries and modes of finding reliable and quality suppliers.
Let’ delve deeper into what this event has in store for buyers, sellers, investors, Alibaba itself and the public at large.
Competitive Move to Tap U.S. Sellers
The event so far has been focused on a wide range of aspects that give a fair idea regarding where Alibaba is headed for the future. There is a strategic motive behind tapping U.S. sellers. It is probably the company’s way of countering tough competition from established players such as Amazon (NASDAQ:AMZN) , eBay (NASDAQ:EBAY) and JD.com (NASDAQ:JD) in the U.S.
The strategy behind attracting small businesses appears to be a part of Alibaba’s effort to tap the relatively untapped portions of the retail market. Unlike big brands, small businesses cater to niche markets and tapping them could help Alibaba bring these markets into its fold.
Eyeing the Lion’s Share of the Market
China is currently the world’s largest retail market followed by the U.S. According to eMarketer, the Chinese retail market offers a $4.89 trillion opportunity compared with the U.S.’ $4.52 trillion. So, it seems that by attempting to connect U.S. sellers with Chinese buyers, the company is trying to grab the lion’s share of the global retail market.
During the event, the company pointed out a win-win situation for U.S. merchants and Chinese consumers. Co-founder and vice chairman Joe Tsai stated that growing demand for high quality consumption allows American businesses to play a major role in China.
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