Download - Alibaba Launches Taobao Global US Merchants Network July ... · Alibaba’s ambition is to build a global platform bringing together manufacturers, merchants and consumers. By launching

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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Alibaba Launches Taobao Global US Merchants Network

1) AlibabahaslauncheditsTaobaoGlobalUSMerchantsNetwork,whichconnectsTaobaoGlobalmerchantswithsmall-andmedium-sizedenterprises(SMEs)intheUSthatwouldliketoselltheirproductstoChineseconsumers.

2) Thenetworkcurrentlyhasover300US-basedTaobaoGlobalmerchantmembersforUSSMEstoworkwith.

3) Thesuccessofthenetwork,atthisstage,hingesgreatlyontheabilityofthesemerchantstomarketandselltheirproductsinChina.Therefore,thee-commercegiantwillalsoprovideregulartrainingseminarsontopicssuchasstorefrontoperationsandlogisticstohelpmerchantsidentifyindustrytrendsandimprovetheshoppingexperienceonTaobaoGlobalforbothUSbusinessesandChineseconsumers.

OurTakeAlibaba’sambitionistobuildaglobalplatformbringingtogethermanufacturers,merchantsandconsumers.BylaunchingtheTaobaoGlobalUSMerchantsNetwork,Alibabais,inessence,creatingachannelforUSSMEstoreachmillionsofChineseconsumers.Themonthlyactiveusers(MAU)onMobileTaobaoalonehasreached369million,andsothevastChinesemarketrepresentsalucrativeopportunityforUSbusinessestotapinto.

AlthoughitwilltaketimetobuildupthesizeofthemerchantnetworkandenrollSMEs,webelievethereisamarketinChinaforsmallerandlesserknownUSbrands,asChineseconsumersareincreasinglywillingtospendforexclusivity.Thesuccessofthenetwork,atthisstage,hingesontheabilityofthesemerchantstomarketandselltheirproductsinChina.Alibabafullyrecognizestheimportantroleplayedbythemerchants,soweviewpositivelyAlibaba’smovetoenhanceknowledge-transfertothemerchantsthroughtrainingseminars.

AlibabaLauchesTaobaoGlobalUSMerchantsNetworkFollowingthroughonthepledgemadebyAlibabaChairmanJackMatoUSPresidentDonaldTrumpaboutboostingUSemployment,theChinesee-commercegianthaslaunchedtheTaobaoGlobalUSMerchantsNetwork,aportaltoconnectsmall-scaleUSmanufacturerstoUScompaniesalreadysellingtoChineseconsumersonAlibaba’sTaobaosalesplatform.ThemerchantscansellproductsmadebytheseUSSMEsto

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“morethanhalfabillionconsumersonAlibaba’splatform,”accordingtoAlizila,theofficialcorporatenewshubofAlibabaGroup.

NetworkOverviewTheTaobaoGlobalUSMerchantsNetworkisacentralizedmatchmakingplatformthatconnectsUSSMEswithmerchantsonAlibaba’sTaobaoMarketplace.Thesemerchantshaveanin-depthunderstandingofChineseconsumers,andareexperiencedinbringingforeignbrandstoChina.TheywillserveastheconduitbetweenChineseconsumersandtheUSSMEs.PartneringwithmerchantsontheTaobaoGlobalUSMerchantsNetworkpresentsa“simple,low-riskandlow-costsolution”forUSbusinessestoopennewsaleschannelsinChinese.Alibabaalsohopestofosterastrongsenseofcollaborationandaninformation-sharingnetworkamongUS-basedTaobaoGlobalmerchantsthroughconferencesandnetworkingevents.

Figure1.TaobaoGlobalUSMerchantsNetworkataGlance

Source:FungGlobalRetail&Technology

Thenetworkcurrentlyhasover300US-basedTaobaoGlobalmerchantmembersforUSSMEstoworkwith.Meanwhile,AlibabaisalsoactivelyorganizingmatchmakingeventsintheUSformerchantsandUSbusinessestoconnectonsite,witheventsalreadyheldinDetroit,NewYorkandLosAngelesinthepastfewmonths.Thee-commercegiantwillalsoprovideregulartrainingseminarsontopicssuchasstorefrontoperationsandlogisticstohelpmerchantsidentifyindustrytrendsandimprovetheshoppingexperienceonTaobaoGlobalforbothUSbusinessesandChineseconsumers.

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DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comMatthewLeeResearchAssistant

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