Each year Alibaba breaks a new record on Singles Day, the 24-hour online shopping extravaganza has now become a celebratory annual event. The rise of online ecommerce has transformed the way Chinese people shop. According to 2015 e-commerce stats, 46% of Chinese people buy groceries online, 30% people made impulse buys, and $ 333 billion purchase were conducted on mobile devices. The online shopping phenomenon, on one hand, is hurting retail, on the other is fostering a multi-billion dollar express delivery business. With 8,000 express companies national wide, China’s express delivery market was worth $ 42.1 billion in 2015.
With humble beginnings in Hangzhou, Jack Ma went on to create an e-commerce titan that has grabbed the attention of China and the world. Today Jack Ma and Alibaba’s story has become the stuff that legends are made of. Duncan Clark has witnessed firsthand Jack Ma’s dizzying rise in China’s e-commerce firmament. A former investment banker at Morgan Stanley, Clark first got to know Jack Ma in 1999 when he met him in the small Hangzhou apartment where Ma and his friends famously founded Alibaba. In this interview, Clark, also the author of Alibaba, the House that Jack Ma Built, talks about Alibaba’s incredible story and its impact on China.
Greater China is now Apple’s number two market after North America, comprising 24% of its business. In October, Apple CEO Tim Cook told investors he expects Greater China will eventually become the company’s top global market. To be sure, Apple faces challenges in Greater China. Sales in the region rose 14% in the company’s first fiscal quarter ended December 26 to $18.4 billion, compared to 70% in the same period a year ago. In a January earnings call, Cook said Apple is starting to see “signs of economic softness” in Greater China. Does the tech giant have staying power in what is now its number two market?
With companies like Baidu, Alibaba and Tencent branching out into new areas, China is witnessing the rise of a new breed of digital conglomerates.
Alibaba’s investment in Suning is a signal that companies in retail in China need a multichannel strategy: embracing both the online as well as offline worlds.
Miko Wormuth, CEO of TWICE Fashion Accessories, on what it takes to build a business from scratch in China and the challenges of operating on e-commerce platforms like Taobao and Tmall.
The success of businesses in the new subscription economy needs more sophistication, nuance and responsiveness.
The success of Starbucks in China has to do with things beyond just coffee: localization of flavors, store formats, image and also retention policies.
With the rise of e-commerce and more discerning consumers, the recent growth of malls in China risks becoming redundant.
By posting a 45% jump in revenues, the Alibaba results have defied expectations. A quick look at the big numbers.