Alibaba seeks to crack the US market with a massive IPO
- By Corrie Dosh
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E-mail Beijing Review, January 13, 2015
Alibaba has also diversified. While most of its profits come from its eCommerce business, most of its growth over the past few years has been from buying up existing companies. Ma recently bought a soccer team, a bank and a money management firm in China. Market experts expect the buying spree to continue worldwide.
"India is a huge battleground. Amazon just announced they're going to spend $2 billion to compete there. Alibaba will definitely look for growth, not necessary in the West, but in the economies whose Internet economies are just beginning to accelerate," said Brad Stone, of BusinessWeek.
The listing of Alibaba heralds the new era of global commerce. China has firmly taken its place with a global brand, and an army of middle class consumers to shift buying power to the East. The door that Alibaba is opening swings both ways. The company will raise billions in funding from the West, and global manufacturers will increasingly target Alibaba's growing customer base. Already, we see companies like Apple and Starbucks adjusting their products to target Chinese consumers. The age of the Chinese consumer is at hand.
The implications of China's dominance in the global economy are many. As the world's biggest customer, what responsibilities does China have in terms of ethical trade, labor conditions, environmental impact and the use of natural resources? Chinese consumers have the power to change the world. It's not enough just to consume – China has to lead.
Google was founded under a tongue-in-cheek slogan: "Don't be evil." Alibaba would do well to follow a similar creed. As the company matures, it must now follow the guidelines of corporate social responsibility. As the labor market for the world, China already knows the dangers of unchecked profit maximization. Now is Alibaba's chance to establish a new precedent.
The era of the informed, ethical consumer has arrived. In a recent survey by Penn Schoen Berland, 82 percent of consumers in China indicated that they are willing to spend more on green products and services. If Alibaba truly wants to be a market leader, it will anticipate these ethical needs of its customer base and influence the market in a positive direction.
The author is a columnist for Beijing Review, living in New York City
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