As the Ali Baba fable goes, ‘open sesame’, brings access to the treasure. However as founder Jack Ma. states ‘Alibaba is not a thief. Alibaba is a kind, smart business person, and he helped the village. So…easy to spell, and global know. Alibaba opens sesame for small to medium-sized companies.’
Have you even bought anything direct from China? Not via Ebay version, but directly via Baidu o Alibaba Express? Well Alibaba thinks you might be starting sometime soon. On the back of their recent record making IPO, Alibaba have a business plan to reach every part of the globe:
Scale? is the world biggest storefront gives Chinese 600 million consumers access to products. Racking up online sales of $248 billion last year, more than those of eBay and Amazon.com combined.
GMROI? Taoboa has 7 million merchants. But with zero inventory gives this e-commerce infrastructure player a business model that is envy of retail world.
Fulfillment? Having an omni channel play for commerce partners allows consumer choice over home, instore or POPStation delivery (Pick Own Parcel Station).
Challenges? There is mass migration to smartphones, the toughest rival to Alibaba is Tencent who already have 355 million Wechat users.