What is the room for newcomers in China´s e-commerce after Alibaba´s successful IPO? WSJ wealth editor Wei Gu discusses with Jef Walters of Boston Consulting, and finds that massive growth is still possible. Only half of China´s internet users is purchasing online, and mobile is still taking off in a country where most users have mobile.
Category Archives: Alibaba
The arrival of Alibaba´s Jack Ma at the top of the Hurun rich list, is part of a profound economic change in China, says Hurun founder Rupert Hoogewerf. New billionaires will be coming from new media and entertainment, while real estate, manufacturing and mining will lose their old positions, he tells in China Economic Net.
Change in the key word to understand China, tells business analyst Shaun Rein in an interview with the Sourcing Journal. “What works now, will certainly no longer work in three years time, says the author of The End of Copycat China: The Rise of Creativity, Innovation, and Individualism in Asia.
After Alibaba´s IPO, its founder Jack Ma now tops China´s Hurun rich list, says Hurun founder Rupert Hoogewerf to the BBC. “The entrepreneurial spirit that has caught China seems not to be abating”. Jack Ma has now a fortune of US$25 million.
Alibaba´s IPO might have made a lot of people and banks more wealthy, especially Hangzhou – the birthplace of the eCommerce giant – will benefit. Rupert Hoogewerf, founder of the Hurun rich list, expects more expensive sport cars in the Hangzhou streets, he tells in USA Today.
One of the major concerns for US investors looking at Chinese companies were the so-called VIE-structures, moving the company to non-Chinese jurisdictions. The major success of Alibaba´s IPO has wiped away those concerns, says accounting professor Paul Gillis, and we might see a more subtle change, he writes on his weblog.
Author Shaun Rein of the upcoming book The End of Copycat China: The Rise of Creativity, Innovation, and Individualism in Asia discusses at the Business News Network how China has moved in ten years time from a copycat economy to real innovation.
Despite its close to US$22 billion IPO at the New York Stock Exchange today, business analyst Shaun Rein does not see in Alibaba a real global company. “Its model is not scalable in other large market like the US and Indonesia”, he says at has much work to do at home, especially on mobile where it is lagging.
Will Alibaba use the capital gained from its IPO to expand fast internationally? China consultant Joel Backaler, expert on China´s outbound investments, does not think so, and explains in Forbes why Alibaba will be tied up at the domestic market at least in the short run.
Alibaba´s e-commerce platform Taobao excels in integrating social functions, says internet expert Benjamin Joffe in CIO. Although it specifically focuses on Chinese buyers, not those in the west, Western companies can learn from it.