Creating Supply Chain Excellence

The Tompkins International Blog

What’s the Big Deal: 9 Most Interesting Alibaba Facts

November 10, 2014

9 Most Interesting Alibaba FactsBy Tompkins International Staff

Alibaba made a big splash with its recent IPO and subsequent publicity. But that’s not the only reason this company is such a big deal. The more you learn about Alibaba and its leader Jack Ma, the more fascinating the story really is.

We’ve outlined nine of the most interesting facts about Alibaba, with more happening on a regular basis. Let’s check them out:

  1. Alibaba boasts 81% of online business in China, also known as the world’s largest e-commerce market.
  2. In 2014, Jim Tompkins estimates that U.S. e-commerce with reach $475B, China will be at $540B, and Alibaba will be at $450B. Alibaba alone will nearly equal all e-commerce in the U.S. in 2014.
  3. By 2020, we believe China’s e-commerce will be larger than that in the U.S., UK, Japan, Germany, and France combined. That is the power of China’s super consumer. Order your copy of Michael Zakkour’s new book, China’s Super Consumers, to find out why we think this will be true.
  4. We predict that Alibaba will be the world’s largest retail platform next year. Yes, bigger than Walmart.
  5. Alibaba is the fastest growing e-commerce company in the world in the fastest growing market. The company’s growth rate since 2003 has approached 120%/year and has grown at a rate of 70% between 2009 and 2013.
  6. In the 24 hours of “Singles Day” (11/11/2013), Alibaba handled $5.75B in sales. This was 80% more than 2012 and 3 times what U.S. retailers sold on Cyber Monday. Tompkins’ prediction for 2015 “Singles Day” is $8B in sales.
  7. Last year UPS and FedEx handled 5 billion packages. In China, Alibaba spurred the delivery of 5 billion packages.
  8. Alibaba is profitable with 2013 revenue of $8B–a profit of $3.6B for a profit margin of nearly 45%.
  9. Alibaba’s September 2014 IPO was the largest IPO in history.

Is Alibaba more than you thought it was before reading this blog? Keep the bigger picture in mind of how significant this company is to retail and e-commerce. To learn more, watch The Alibaba Effect video.

More Resources

Photo Credit: Andrew Burton Getty Images

Related Images:

Leave a comment

Why Have 80,000 People Watched The Alibaba Effect?

November 6, 2014

Alibaba-Effect-Video-Goes-Over-80kBy Jim Tompkins
CEO, Tompkins International

More than 130 days ago we released the video The Alibaba Effect. Yesterday, the video surpassed 80,000 views. Yes, 80,000!

Why? The majority of business videos do not get 80,000 views in a little over 130 days. If you search Alibaba or Alibaba.com, you’ll find only a handful of videos with more than 80,000 views and many of them were released years ago.

So the question is: Why have 80,000 people watched this video? We went straight to the source and asked viewers. Here are the top 8 reasons:

  1. I had never heard the name Alibaba and I wanted to understand what they do.
  2. I saw the 60 Minutes show on TV and I wanted to learn more about Alibaba.
  3. My co-worker said the video was full of startling facts that he felt I needed to understand.
  4. I was looking at doing business in China and a search of online businesses in China led to this video.
  5. A friend felt this was a big deal and suggested I needed to see it.
  6. I read an article about Alibaba and the article said if you were in retail I needed to watch this, so I did.
  7. My boss sent me a note saying: “Watch this video and then let’s discuss.”
  8. I heard a speaker at a conference mention the video and so I wanted to see what all the excitement was about.

Very interesting!  I would love to hear your feedback and why you watched—or are going to watch—the video. Let me know in the comments section below or tweet me @jimtompkins.

More Resources:

Photo credit: www.graphicstock.com

Related Images:

Leave a comment

Five Retail Industry Statements that Missed the Mark

November 5, 2014

e-commerce fulfillment centerBy Jim Tompkins
CEO, Tompkins International

There was a brief news article last week (read it here) about the future opening of an e-commerce fulfillment center. What made the article jump off my computer screen were the uninformed statements made about American retail business. Let’s take a look:

  1. On the third line, there is a quote from the Governor of Illinois: “We are in the middle of the United States, with excellent transportation, and great air and rail connections.” The Governor does not seem to grasp the e-commerce mandate of “Get local” or the reality that the Illinois-based fulfillment center has nothing to do with air or rail transportation.
  1. The next quote is from a Senator from Illinois: “This is also our history — it’s Sears, Montgomery Ward, every retail giant comes here because they understand Chicago is the focal point when it comes to retail operations.”  The Senator is actually suggesting that a reason for locating a fulfillment center close to Chicago is so you can follow in the footsteps of the “retail giants” Sears and Montgomery Ward.
  1. Quoted from lines 10 and 11: “The trends include the reshoring of manufacturing to the US…” is a reason to locate the new fulfillment center “into the middle of the US…”The “reshoring” thing has not been a huge success. Yes, some companies are bringing manufacturing “back” to the US, but more are moving manufacturing offshore or via nearshoring to Mexico. Nevertheless, this has nothing to do with a fulfillment center in the middle of the US.

There were several other areas that missed the mark about e-commerce:

  1. E-commerce sales only being only 3 to 10% of total sales, thus meaning e-commerce is not that important.  Shopping is not about online or in-store, but omnichannel. The reality is that 94% of all US retail sales start online. So to say that e-commerce is not very important is far from reality.
  1. Similarly, the next statements about retail were made recently in a report entitled “On Solid Ground: Brick-and-Mortar Is the Foundation of Omnichannel Retailing.” The report includes mind-blowing statements such as:
    • “Physical stores remain the foundation of retailing.”
    • “Physical stores are clearly customers’ preferred shopping channel and a place where the most significant consumer and retailer value continues, and will continue, to be created.”
    • “The future of retail is solidly anchored in the brick-and-mortar channel.”

Let’s be realistic about changes happening in retail and get informed on the consumer expectations facing the retail industry today. Today’s consumer won’t wait for anyone to catch up.

More Resources:

Photo credit: Ross D. Franklin AP Photo

Leave a comment

A B2B Question from the Floor (that Almost Knocked Me to the Floor)

October 1, 2014

globalization

By Jim Tompkins
CEO, Tompkins International

I was speaking at a large conference about the major impacts of globalization, technology, and supply chain on commerce. At the beginning of my presentation I defined commerce to include retail, consumer products, wholesale, and distribution.

At the end of my presentation, someone asked: “I really understand what you are saying for B2C, but is there anything happening in B2B? Is anything you said relevant for B2B?” 

My first reaction was, Good question, I really need to help B2B people grasp the magnitude of what is coming their way.

But then the words “is anything happening” and “anything relevant” burst into my mind. To be honest, I was speechless for the first time in many years. I answered the question by explaining how B2B is in as much of a transition as B2C, and everything in my presentation was relevant to both B2B and B2C.

Obviously I was totally floored by this question. Over the next few days, I contemplated my response. Now that I’ve (figuratively) gotten up from the floor, I’d like to share what I think is the best answer to that question.

The B2B space is undergoing massive transformation as a result of major changes in customers, distributors, and technology. In fact, every aspect of B2B is changing and B2B players who are doing the same things today as they did 5 years ago will become obsolete.

The first area in B2B where major changes are occurring is with the B2B customer. Today’s B2B customer demands low prices, great experience, very broad selections, and convenience that were considered unachievable only a few years ago:

  • Low prices: B2B customers have traditionally not been as sensitive to price as B2C customers. But with the power of the internet and the large number of manufacturing companies selling online, today’s B2B customer is shopping online for prices. A recent survey showed that 61% of B2B customers believe product price is extremely important and 31% think it is very important. A total of 92% of B2B customers feel that price is at least very important. If 92% of all B2B customers find their industrial distributor total delivered price is significantly higher than the manufacturer’s price, they will buy directly from the manufacturer (which was not even an option 5 years ago).  In addition, most of today’s B2B customers have more than one preferred B2B provider and more than one-third of all B2B customers shop online outside of their existing supply base to ensure competitive pricing. Contrary to traditional B2B thinking, low total delivered price is a critical factor in B2B buying decisions
  • Great experience:It’s clear that today’s B2B customers have very high expectations of their suppliers. This includes everything from real-time product availability and enhanced search to improved product descriptions and streamlined checkout/invoicing.  The B2B buying experience includes mobile ordering, ability to see estimated delivery dates, order status, order history, repeat ordering, personalization, workflow management systems and transparent shipping, and return and restocking fees.
  • Broad selection: Today’s B2B customers demand a selection of products that is both broader in variety and deeper in offerings. One of the major drivers of B2B mergers and acquisitions is the buying of distributors who offer different products and then integrating these distributorships to offer a broader selection to customers. Another way to achieve a broader selection is by acting as a marketplace. (To understand more about marketplaces, watch the video The Alibaba Effect.) Marketplaces place product offerings on your site for sale even though you do not have any inventory of these items. Orders for these “stockless inventory” items are simply passed to your marketplace partner who drop-ships the products to your marketplace customers. These stockless inventory items can allow you to literally offer an “endless aisle” of product offerings without increasing inventory.
  • Convenience: Customers generally equate “convenience” with the ability to order online and the speed at which they can obtain their order. Recent research shows that 67% of all B2B customers believe the ability to order from a website is either extremely or very important. B2B customers are like B2C customers in that 25-30% is willing to pick up their order. For both pickup and delivery of orders, the speed of delivery is facilitated by having by the “Get Local” concept of having branches near the customer’s location. In fact, 92% of all B2B customers say having a physical location where they can easily purchase or pick up product is extremely or very important. In addition, 85% of all B2B customers say that having an accurate estimate of the delivery window is extremely or very important.

In addition to B2B customers, industrial distributors have also undergone massive transformations. Just a few years ago, industrial distributors were predominately family-owned businesses built on decades of service and personal relationships. The industrial distribution industry has been highly fragmented, with the sales representatives considered the most important employees who help guide the B2B customer to the products they need. However, due to a combination of the customer wanting to deal with fewer industrial distributors and mergers and acquisitions among industrial distributors, traditional family-owned distributors are becoming a rarity.

Research shows that 68% of all B2B customers prefer doing search on distributor websites and only 58% of all B2B customers feel having that a sales representative is extremely or very important. In the 2013 white paper “Industrial Distribution at a Crossroads,” we presented the reality that for industrial distributors to continue to be successful, they need to adopt the right strategy, the right technology, and the right supply chain. Failure to do so leads to turmoil and eventually bankruptcy.

Let’s not forgot about the changes in technology too. B2B customers have forced industrial distributors to adapt technology and the industrial distributors themselves have understood and embraced this need for technology. B2B customers rely on technology, from the initial research on what they want to buy all the way to the delivery of their desired products. There is no aspect of creating a happy B2B customer that is not driven by or supported by technology.

A recent UPS report on B2B purchasing Insights concluded that e-commerce needs to be embraced (but not exclusively). Suppliers who are not yet online risk being excluded from consideration by buyers at all spending levels. While traditional selling methods should not yet be abandoned, it is difficult (if not impossible) to compete if you are not present on a platform where the majority of buyers are spending their budgets.

So let’s ask the question again: Is anything happening in B2B? You bet. In fact, as more people grasp the transformational implications of e-marketplace Alibaba, we are left considering the real question: Is there anything in B2B that is not changing?

More Resources:

Photo Credit: www.graphicstock.com

Alibaba IPO: Just Give Me the Facts

September 9, 2014

Alibaba IPO: Just Give Me the FactsBy Jim Tompkins
CEO, Tompkins International

I’ve been reading a lot of articles lately that toss around Alibaba IPO numbers. There are so many variables and this is really a big deal. (I have never tried to sell $20+ billion of stock—but it can’t be easy.) Given the many variables, I’d like to present the ranges I believe are reasonable for the Alibaba IPO, as well as the emotions and significance of these numbers (which is maybe even more important than the numbers).

Of course, I am not an employee of Alibaba, I don’t own stock in Alibaba, and I have never done consulting work for Alibaba. But I am a CEO of a supply chain consulting and implementation firm that does a lot of retail and consumer products consulting. I am student of Alibaba and I have conducted extensive research on the company, its founder Jack Ma, and its past, present, and future. Watch my video The Alibaba Effect to learn more about the Alibaba phenomenon.

Let’s look at the IPO share price and cash raised first. I believe the Alibaba IPO share price will be between $60-$70 and that the IPO cash raised will be between $20-$25 billion. To be the largest IPO ever in the world, Alibaba needs to raise more than the $22.1 billion that was raised by the Agriculture Bank of China, Ltd. in 2010. To be the largest in the U.S., Alibaba needs to raise more than $19.96 billion raised by Visa in 2008 (Facebook was only $16 billion in 2012). The Alibaba team will be conducting 100 meetings globally over the next ten days, and the result of these meetings will affect where Alibaba will land in these ranges.

I believe the valuation range for Alibaba’s IPO will be between $155-$170 billion. A fun side note: Amazon’s current valuation is $160 billion, and Alibaba may think it would be cool to be valued at more than Amazon. My view of today’s actual current valuation is $190-$220 billion. So why would Alibaba position its IPO at a valuation lower than the actual valuation? Good question. The reason is because Alibaba has unique IPO objectives. Alibaba is not going public to raise cash. Alibaba’s objectives are to:

  1. Increase its brand recognition as a result of the IPO. In turn, this will grow the participation of global companies on TMall, increase U.S. awareness of Alibaba, and position Alibaba as the leading global retail platform.
  2. Boost its momentum. Alibaba is very aware of poor publicity that befell the Facebook IPO due to the poor performance of its stock shortly after their IPO. This will not happen to Alibaba. Its goal is to see its stock price increase after the IPO by offering shares at their IPO at a conservative price, thus almost assuring significant gains going forward. This gives Alibaba the much desired momentum going into the 4th quarter.

Are you wondering if going with a conservative valuation makes Alibaba shares a good deal? Yes—I believe buying Alibaba stock is a very good deal. (But hey, that’s just me.)

More Resources:

Photo Credit: Photographer Andrew Harrer Bloomberg

Related Images:

What’s Happening with Alibaba: Profits Soar as IPO Nears

September 2, 2014

Alibaba initial public offering (IPO)By Jim Tompkins
CEO, Tompkins International

The Alibaba initial public offering (IPO) is just weeks away and things already look promising for the Chinese e-commerce giant. In a recent New York Times article, “Mobile Sales Lift Alibaba Profit Nearly Threefold, Ahead of I.P.O,” profit numbers for the last quarter have tripled to $2 billion, with sales jumping 45% to $2.5 billion.

The New York Times now says what I have been saying for the last 10 months—that the Alibaba IPO has the potential to be one of the biggest ever and that the offering could raise up to $20 billion. Alibaba’s financial success is a result of its increase in mobile capabilities, and thus, mobile sales. The article says that “nearly a third of Alibaba’s gross merchandise volume, or the value of goods sold on Alibaba’s marketplaces, comes from mobile transactions, compared with just 12 percent a year ago.”

This rings true to what I discuss in my video, The Alibaba Effect. Alibaba and its founder Jack Ma are changing the way supply chains are viewed and clearly Jack Ma will do whatever it takes to succeed.

As Alibaba’s numbers continue to climb, make sure you have watched The Alibaba Effect video and create your game plan. From the “get local” movement to e-commerce planning, you need a firm understanding of how to optimize your supply chain and e-commerce strategy in order to be successful as Alibaba’s IPO looms.

More Resources:

Photo Credit: http://logonoid.com

Related Images:

Confusion Reigns as the Question Persists: What Exactly Is Omnichannel?

August 27, 2014

Confusion Reigns as the Question Persists: What Exactly Is Omnichannel?

By Jim Tompkins
CEO, Tompkins International

I recently read a July 2014 report titled “On Solid Ground: Brick-and-Mortar Is the Foundation of Omnichannel Retailing.” While there are a few points in the report that show some understanding of omnichannel, I also disagree with many of the points it presents and believe it only adds to today’s confusion surrounding omnichannel.

Consider the following quotes from the report, as well as my thoughts:

  • “Digital retailing is capturing headlines and inspiring spirited debate as retailers plan how best to invest for future success. But beyond the headlines, physical stores remain the foundation of retailing, evidenced by the fact that 90 percent of all retail sales are transacted in stores.” This is simply untrue. Omnichannel means all channels work together to provide a great customer experience. Most customers use multiple channels to shop, so to credit the channel where the actual transaction takes place indicates a total lack of understanding of omnichannel.  In fact, where a sale is transacted has nothing to do with the importance of omnichannel. Think about it this way: If a customer finds an item that they like online and then goes to the store to buy it, is this an online sale? No. Is it an in-store sale? No. It is an omnichannel sale. Accounting systems that track where a sale takes place have nothing to do with the concept of omnichannel. Therefore, it is critical to identify the capabilities of your many segmented supply chains and enable them to achieve omnichannel sales potential at a minimal cost.
  •  “Physical Stores are clearly customers’ preferred shopping channel and a place where the most significant consumer and retailer value continues, and will continue, to be created.” This is also completely untrue. Place this in the context of the August 8, 2014 Wall Street Journal article “Shoppers Flee Physical Stores.” The opening sentence reads: “US retailers are facing a steep and persistent drop in store traffic, which is weighing on sales and prompting chains to slow store openings as shoppers make more of their purchases online.”  Omnichannel is not about a competition between channels.  In fact, retailers need to realize that customers do not even think about channels. Channels are the retailers’ issue. Customers want to buy from you and use your various channels to support that purchase. Shopping is not about having a preferred channel—it is about finding the price, selection, experience, and convenience that fills your needs. Shopping must be omnichannel! Look at requirements of today’s final delivery to customers and you can see the major transformation that is occurring with same-day, next-day, second-day, and local delivery service providers. Innovation in final delivery is clearly being driven by the shopper fleeing the physical store and preferring alternative shopping channels.  This may lead to a need for retailers to be creative in driving traffic to the stores, but clearly how retailers make innovations in their delivery capabilities is the key to future growth.
  • “The store plays a crucial role in online purchases, as two-thirds of customer purchases online use a physical store before or after the transaction.” The whole point is that all channels work together for omnichannel success.  All channels are critical, and a strong channel management strategy is the answer to the success of retail.  Stores that support online are what omnichannel is all about. In a similar way, online helps stores: more than 60% of all retail purchases are influenced by online. But, this does not mean stores or online are the keys to success. This means that omnichannel holds the true key to success.
  •  The future of retail is solidly anchored in the brick-and-mortar channel.” Again, this is nonsense. If a portion of your channel management strategy is to have stores, then these stores will play a key role in your omnichannel strategy. But the future of retail is not in one channel or another, but in omnichannel.  Retailers that do not recognize this will not only operate with a channel strategy that is inflexible and unable to adapt to the rapid changes in customer preferences, but the supply chain will be a huge driver for escalating costs and act as a bottle neck to achieving best-in-class customer satisfaction.

When I first read the article, I was confused. But then a second, more careful read brought an answer: A short excerpt about the study reads: “This independent survey of consumers and retail executives was funded by, and completed in cooperation with, leading U.S. shopping mall real estate developers.” There you have it—so much for trying to make sense out of nonsense.

Photo Credit: Tim Reckmann

Doubts About Alibaba and Jack Ma? Find Out Why the Critics Are Mistaken

August 18, 2014

By Jim Tompkins
CEO, Tompkins International

Doubts About Alibaba and Jack Ma? Find Out Why the Critics Are Mistaken

Jack Ma, Alibaba founder

I was fascinated this past week when it was reported by the The New York Times (among others) that “Doubt is Cast on Vetting of Deals by Alibaba.”

As everyone knows, I am a keen student and researcher of Alibaba. In my recent video, The Alibaba Effect, I discuss not only the amazing story of the e-commerce giant—nearing its announced IPO in just a few weeks in the U.S.—but I also comment on the intelligence, entrepreneurship, foresight, and risk-taking of its renowned leader, Jack Ma.

The newspaper reported, essentially, that Alibaba has been on a buying spree since 2013, spending billions to acquire stakes in businesses such as department stores and mapping services in China, as well an array of technology start-ups in the U.S. In addition, the article indicates that its recent acquisition control of a Hong Kong film company just two months ago (now called Alibaba Pictures Group) might not have been “fully vetted,” and that “possible non-compliant accounting issues” have since been discovered.

The article further asserts (via “experts”) that “Alibaba has little expertise in many of the new businesses,” which means that it has to rely on incumbent managers in business decisions; and, that “Alibaba, like most Chinese companies, does not have the ability to manage the increasing number of unfamiliar yet decentralized divisions and people.”

I find these assertions fascinating because the so-called “experts” are most often those who do not take risks, do not experiment, and do not learn by doing.  Jack Ma has been pushing the envelope, out-learning them, and moving forward with a speed unheard of by Western analysts. He has a great vision, is on a path to learn rapidly, and is following that with passion.

Whether or not a financial or accounting detail was missed by his highly qualified advisors is not the point, and it is certainly not any criticism to be considered in the soon to be conducted IPO.

Interestingly, the critics have also recently reported certain structural weaknesses or irregularities in Jack Ma’s corporate organization. Amazingly, he acted within a week to adjust these to provide more clarity and transparency, as well as reorganize them to meet more “commonly accepted standards.”

Jack Ma has publically discussed his goal of growing a major global business for the long term, while moving quickly to build his presence in the short term. As I discuss in some depth in The Alibaba Effect, he is doing just that. The ramifications for any business in the world are significant, and we are encouraging, and working with, many companies to prepare for and take full advantage of these effects.

As Alibaba’s founder follows this rapid roadmap, he is quickly learning about different industries—e-commerce, Internet and store retail, banking, Internet video, mapping services, microblogging, web browsers, and now entertainment, as well as learning more and more about different countries and cultures.

I very much doubt this fast-paced “study, acquire, learn, and profit model” will slow down, either before or after the IPO. He is taking calculated risks to apply this model and turning it into a big advantage.

Others can criticize and use old-school criteria to find faults, but Alibaba and Jack Ma are changing the world while the debates persist. As some wise people have stated before, “Either get on the fast-moving train or get out of the way.” And as the video conveys, smart companies will prepare now for the growth and profit ride.

What are your thoughts on Alibaba’s fast track towards success? How are you preparing to compete?

 

More Resources:

Photo Credit: World Economic Forum

Related Images:

Thoughts on Upcoming Alibaba IPO: What’s in a Name or Number?

July 7, 2014

By Jim TompkinsAlibaba IPO

Since 1999, when Alibaba first started their marketplace of Alibaba.com, it has been clear that the Chinese company has a strong passion for the U.S.

With the recent news of Alibaba going public, some are surprised that they selected the New York Stock Exchange (NYSE) over NASDAQ, that the ticker symbol will be “BABA” and in my view, puzzled as to why the date and price of the IPO will involve the numbers “8” and “9”. None of these things come as a big surprise to me.

A few revealing points to consider on the Alibaba IPO:

  1. There was an active discussion about where Alibaba would go public. To some, the two finalists were New York and Hong Kong. Unless there were compelling business reasons to the contrary, the answer was always going to be New York because Jack’s vision has always been to be a global firm with a Chinese philosophy and an American base.
  2. The selection of the NYSE over the NASDAQ. For the same reasons that #1 is not a surprise: the NYSE is the largest stock exchange in the world by market capitalization and can also be classified as “more American.”
  3. The ticker symbol “BABA” also was predictable. The two Chinese translations for the word BA are “8” and “fortune”, “wealth” or “prosperity.” Additionally, 8s are very prominent in China—from flight numbers ending in 8, to the opening ceremony for the Beijing Olympics on 8/8/08. Telephone numbers with 8s are also valued, as is the 88th floor of buildings. This significantly stands out in pricing as many ending with 8 (1.88, 2.88, etc.).
  4. Consistent with #3, I anticipate the date and price of the IPO to involve the numbers “8” and “9” (the number 9 translates into “long lasting”). Also, for the exact opposite reasons, I do not expect to see the “unlucky numbers” 4, 5, or 6 associated with the date or offering price for the stock.
  5. The new “All-American” name of the Alibaba marketplace, 11 Main. We get that 11 Main is on Main Street, as in Main Street USA. So, the connotation is not a supercenter or a mall, but rather on Main Street. This is a clear indication that 11 Main will be anti-big box, anti-mass merchant, and a pro-neighborhood shop—a place not to buy everyday common products, but a venue to buy unique and exciting products. But what is so special about 11? This instantly makes me think of 11/11, which is Singles Day in China. Before November 11 was the big Chinese shopping day, it was the big relationship day in China. November 11 was traditionally the day that boy meets girl, who then lived happily ever after. The number 11 then, not from Chinese tradition, but from Singles Day, means a personal relationship. So, what the 11 in 11 Main translates to is a neighborhood place where there is a strong relationship between the merchant and customer. It is a very cool marketplace for the first wave to hit the American shore. But it is not BABA Main, I mean 88 Main, it is 11 Main.

And finally, it is fascinating to watch how Alibaba is changing the way supply chains are viewed in the U.S. In my new video, The Alibaba Effect, I discuss these points in more detail. What you will hear is critical and will help you plan your counteroffensive now and lead your company to success in omnichannel.

 

More Resources:

Photo Credit: Daniel Foster

Related Images:

Top 6 Reasons Why You Should Watch The Alibaba Effect

June 27, 2014

By Tompkins International Staff

Alibaba EffectHow many of you have heard of Alibaba, the Chinese e-marketplace? Alibaba is the fastest growing e-commerce company in the quickest growing market in the world. CEO Jim Tompkins recently sat down to discuss how Alibaba is changing the way supply chains are viewed in the U.S. Here are the top 6 reasons why you need to watch The Alibaba Effect:

  1. Alibaba does 80% of the online business in the largest e-commerce market in the world.
  2. Out of every dollar of revenue, Alibaba makes 43 cents profit.
  3. Alibaba marketplaces have more than 10 million sellers and more than a billion product listings.
  4. Jack Ma, founder of Alibaba, and Alibaba itself have invested over $1 Billion in businesses in the United States.
  5. Alibaba is planning to invest more than $20 billion in logistics over the next eight years.
  6. Most importantly, Alibaba will either be your competition or your biggest ally. You have no choice but to respond.

What you will hear in The Alibaba Effect video is critical and has never been discussed in detail from a supply chain perspective. Alibaba is changing the game when it comes to supply chains in the U.S.  Watch this video so you can plan your counteroffensive now and lead your company to success in omnichannel.

 

More Resources:

Photo Credit: epSos .de

Related Images: