It’s phenomenal to see an idea that started with, ‘no money, no plan, no technology’ (Jack Ma’s interview with Inc) is all set to beat WalMart – as the world’s largest retail platform. Finance reports for this year indicate a boom of $463.3 billion trading volume this year for AliBaba. An official announcement is yet to be made by Alibaba Group Holding Lt at the end of this fiscal year on March 31st.
The Origin of Jack Ma and Alibaba
It is pertinent to note that the owner of Alibaba Mr. Jack Ma was no millionaire, neither a smart geek in his early years. In fact, he was penniless and had no stable job when he decided to start the company in 1999 in his own apartment. Jack Ma’s success slogan is, ‘global vision, local win,’ a business goal that many young entrepreneurs fail to understand or visualize. This was precisely why he named his company, ‘Alibaba,’ indicating its global nature and the fact that it translated to, ‘Open Sesame,’ leading the user into a world of retail products sold at the most optimal prices.
Walmart announced its net sales end of January, stating a figure of USD 478.6 billion for the fiscal year. Zhang Yong, Alibaba’s CEO provides further estimates as he expects the company to achieve a trading volume of USD 980 billion by 2020. Sharing future plans of implementing cloud technology and big data technologies along with the Internet of Things, the company aims to give a lot more than what it currently offers. In the near future, as the Internet of Things gains precedence in our lives, the company looks forward to meeting increased consumption with innovative additions to their business model.
The Future of Alibaba and Online Economy
The company’s directors and stakeholders see a positive pattern as China moves from an investment-driven to a consumption-driven economy and despite facing a fall in economic growth, China has still managed to beat the US in the e-commerce market.
According to a Forrester Research forecast, by 2020, the online spend per buyer will reach a $2,500 value, which is a 7% annual increase from 2015. And though this is a dollar statistic, doesn’t mean it’s not applicable to Pakistanis, especially since online spending is catching up rapidly here.
In fact, there are already thousands of people who have purchased from Alibaba (and AliExpress) rather than from local stores – of course with our customs, many have also been discouraged. Nevertheless, with the passing of time, expect to empty wallets thanks to companies fueling our spending desires!