Chinese Mega Companies Are On The Rise: Alibaba Is The New Tech Star
June 12th, 2018 5:08 pm | By admin | Posted In Business News
This generation is witnessing things that no person could have predicted just decades ago. While past retailing icons like Sears are announcing massive closings in the US, the world is surprised by the size and power of online giants overseas. Aside from radical innovations, these days have also been marked by the rise of new stars coming from unexpected countries like China.
Not many years ago, the Western population associated Chinese products with low-quality copies. Even now, American companies and politicians accuse Chinese firms of stealing US intellectual property. Now, however, some Chinese mega companies are demonstrating just the opposite. According to Doreen Wang, the head of BrandZ’s, which is one of the largest brand equity databases, “Attitudes are changing, particularly among younger consumers who are falling in love with Chinese brands.”
Chinese tech firms have introduced innovative products that are still not widely recognized or that are being overlooked by US businesses. Innovation in the mobile payment arena is notable and now young Chinese individuals are using their mobiles for most transactions. According to Business Insider, one of the most outstanding revolutions is “China’s mass adoption of ecosystem-based technology platforms. In contrast to US tech companies designed to perform one function extremely well—like transport for Uber or social media for Facebook—China has leaned toward apps that fulfill a variety of functions.”
Brian Wong, Alibaba’s Vice President of Global Initiatives says that the United States should recognize the remarkable technological advances achieved by Chinese tech companies and see the unique market features of the Chinese consumer culture as an opportunity instead of a threat. There is huge room to collaborate and grow but it is time to change old misconceptions about China.
Among the new Chinese stars, Alibaba is one of the brightest. If you live in the US you may not have heard of Alibaba as its not a household name quite yet. The name may signal old Arabian roots, but Alibaba is a very important corporation in today’s business world.
BrandZ’s most recent ranking shows that Alibaba is the 9th most valuable company in the world, with a brand value of US$113 billion. Thus, Alibaba is placed among a very selected group along with Google, Apple, and Facebook. Its position moved up this year, thanks to their expansion toward new large technological markets. Tencent, another Chinese company, is even better positioned, placing itself at the 5th place.
According to Forbes 2017 Global 2000 Growth Champions that ranks companies based on sales, profits, assets and market value, Alibaba is placed in the 63rd position. The firm was founded in 1999 and has almost 40,000 employees right now and sales over US$20 billion.
Alibaba Group’s website says “Our businesses are comprised of core commerce, cloud computing, digital media and entertainment, innovation initiatives and others.” Although the original business was the e-commerce platform, Alibaba group is a mega corporation operating in numerous industries and it continues to buy existing firms to enlarge its scope. An example of that occurred in November 2017 when Alibaba purchased over a third of China’s largest grocery chain, Sun Art Retail Group, and they are also investing in upgraded technology—including a new visual recognition capability added to its smart speakers.
Alibaba’s vision states, “We aim to build the future infrastructure of commerce. We envision that our customers will meet, work and live at Alibaba, and that we will be a company that lasts at least 102 years.” If this goliath keeps up with its current growth rate, the vision will be surely met.
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