Alibaba ardently woos US small businesses

When Alibaba’s Jack Ma met US President Donald Trump in January, he said he would create a million jobs in the United States, and he set out to make his first attempt at fulfilling that pledge in Detroit this week.

Alibaba’s Gateway ‘17 conference, which began on Tuesday and continues on Wednesday, is pitched as a way to get small and medium-sized US businesses to sign onto Alibaba’s various e-commerce platforms, such as Taobao and Tmall.

Ma was scheduled to give a keynote address on Wednesday to an expected audience of thousands on how to succeed in China through Alibaba.

“The Chinese market presents tremendous opportunities for US small businesses and farmers to grow their businesses, and in turn, create more US jobs”, Ma said in an April letter announcing the conference.

“At Alibaba, we want to help you take advantage of this appetite for consumption through our e-commerce marketplaces,” he said. The event was in Detroit because it is “home to some of America’s greatest ingenuity and innovation”, Ma added.

Ma had previously said that he hopes that the percentage of Alibaba’s business outside of China will increase from 2 percent to roughly 40 percent. Cross-border transactions grew 10-fold between 2010 to 2014, increasing from $2 billion to $20 billion.

Alibaba has focused on big US corporations like retailer Costco and purveyor of baby food and baby products Gerber to conduct their sales on its e-commerce sites, but it has increasingly sought small and medium-sized businesses that don’t have as big a reach but have established followings.

This year’s conference, which Alibaba said it plans to host annually, will feature Detroit Mayor Mike Duggan, Michigan Lieutenant Governor Brian Calley, Martha Stewart, and David Abney, chairman and CEO of UPS.

“UPS is encouraging US companies to take advantage of tremendous export growth opportunities,” Abney said in a statement to China Daily about the conference.

“Our message is: China is a market that can deliver growth, if companies partner with experienced leaders that can help with product visibility, like Alibaba marketplaces, and product delivery with help from UPS,” he said.

UPS has been aggressively pursuing the Chinese market as e-commerce activity continues to soar.

In June the Atlanta-based logistics giant announced a joint venture with SF Holding, China’s largest delivery service, to provide international delivery services from China to the US.

The Detroit Chinese Business Association, which fosters trade relations between Chinese and US businesses, has been helping to promote and market the conference with its members and other companies looking to do business in China.

“Alibaba as a platform is perfect for job creation in the US,” said Brian Gao, president of the DCBA.

“Small and medium-sized businesses have no way of competing with big corporations overseas because the cost of entry can be so high, but Alibaba essentially breaks down that barrier by providing a platform for those businesses and helping standardize those transactions,” he said.

value of Alibaba’s cross-border transactions