Alibaba founder talks opportunity, risk and chickens
Ma tries to woo Canadian entrepreurs with vast opportunities in China
Alibaba founder Jack Ma encouraged Canadian entrepreneurs to consider the possibilities presented by the Chinese market, rather than focusing on the difficulties as he made his pitch for why small businesses should sign on to the e-commerce platform.
Speaking in Toronto on Monday at Alibaba Group Holding Ltd.’s Gateway ’17 conference, Ma, wearing a white shirt with rolled-up sleeves and a blue tie, spoke animatedly about the opportunities available to entrepreneurs willing to embrace technology and take a risk, just as he did when he started the company out of his apartment 18 years ago.
“You have any idea how many chickens Chinese people eat every year? We eat seven billion chickens every year. That’s the population of all human beings,” Ma said.
“Why not have a try? Don’t be afraid. Don’t be scared.”
With Alibaba merchants selling US$550 billion worth of goods in the 2016 fiscal year, the company is already a major force in the global economy.
But Ma has his sights set on North America, hoping to make Alibaba the go-to portal for businesses of all sizes interested in selling their products internationally.
Attendance at the event suggests Canadian business owners are indeed interested. Gateway ‘17 attracted 3,600 people, with just 30 per cent of registrants telling conference organizers they already do business with China.
There are rich rewards for companies that find a way to succeed in the Chinese market. China has more than 300-million middle class consumers, with people in the country spending almost US$5 trillion last year.
As China’s middle class grows, consumers are becoming increasingly interested in international products, with Canadian goods perceived as being high-quality and coming from a pristine natural environment. In 2014, a Canadian company famously sold 90,000 Nova Scotia lobsters through Alibaba on Singles Day, the Chinese version of Black Friday.
Alibaba does not disclose country-specific sales figures, but a spokesman referred to its business in Canada as being in “early stages.” Brands that already sell through Alibaba include Lululemon, Aldo, Herschel Supply and Canada Goose.
Laurent Potdevin, chief executive of Lululemon Athletica Inc., said the company’s business in China has increased 350 per cent year over year, with sales through
Alibaba’s Tmall portal tripling compared to the previous year.
“It’s a very substantial opportunity for us and we’re excited about it,” Potdevin said in an interview. “We’re seeing tremendous traction there, in the way people want to live their lives, in how who we are as a brand resonates there.”
Prime Minister Justin Trudeau spent a significant amount of time at the event, delivering a keynote address and joining Ma on stage for a fireside chat. He urged small businesses to seize the opportunity.
“Ladies and gentlemen, let’s think big. Let’s think beyond the borders of our countries,” he said. “And let’s see small businesses, the backbone of our country, prosper like never before.”
Ma’s message to business owners was that selling to China may not be easy, but that it’s worth it for those willing to work hard and persevere.
He urged entrepreneurs to spend less time worrying and more time acting.
“Alibaba would be honoured and would love to be the gateway to China. Alibaba would love to be the gateway to the global market,” Ma said.
“We believe the internet is a treasure island. We believe we should open sesame for every small business.”