‘Tremendous challenges’ for Chinese eCommerce
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Chinese eCommerce companies could face “tremendous challenges” as Alibaba aims to transform the the mainland’s traditional retail industry, worth an estimated US$4.5 trillion.
In a letter to shareholders, CEO Daniel Zhang says the company hopes to “upgrade” traditional retailers through improvements to distribution, service and product manufacturing.
“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,” he writes. “The consumer retail industry as a whole is experiencing radical disruption driven by digital transformation.”
Alibaba chairman Jack Ma has set a target of 20 years to attain 2 billion customers and support 10 million profitable businesses globally.
Zhang cites cloud-based infrastructure and data as two areas where Alibaba sees future growth.
“Cloud computing and big data will become ubiquitous,” he says. “Data has already become the new ‘natural resource’ that is as vital as oil and electricity. Cloud computing is the new ‘engine’ powering commerce.”
Questions & Answers
Q.What specific aspects of traditional retail does Alibaba aim to upgrade?
What specific aspects of traditional retail does Alibaba aim to upgrade?
Alibaba intends to help traditional retailers by improving their distribution systems, enhancing customer service, and optimising product manufacturing processes. This strategy aims to transition them into a new retail model rather than solely focusing on online sales growth.
Q.What long-term global goals has Alibaba's chairman set for the company?
What long-term global goals has Alibaba's chairman set for the company?
Chairman Jack Ma has set ambitious targets for Alibaba over the next 20 years. The company aims to acquire 2 billion customers worldwide and support 10 million profitable businesses globally, signifying a substantial international expansion plan.
Q.Which two technological areas does Alibaba identify as key for its future growth?
Which two technological areas does Alibaba identify as key for its future growth?
Alibaba's CEO Daniel Zhang highlights cloud-based infrastructure and big data as critical areas for future expansion. He believes these technologies, particularly cloud computing and data, will become widespread and power future commerce.
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