Alibaba Group Holding Ltd (NYSE:BABA) entered the United States stock market with a bang last week with its prices rising over 38% on debut. Market forces did adjust the price of the stock in the following days but foreign investors are now well aware of the tremendous potential of the Chinese e-commerce giant. Frank Lavin, founder and Chief Executive Officer of Export Now, the Chinese e-commerce solutions provider, explained what the Alibaba initial public offering (IPO) means for foreign investors on CNBC’s Capital Connection.
Lavin said that the scope of online shopping is no longer restricted to domestic markets but has gone global. Now, China has become the easiest country for foreign brands to enter as they have a clear approach path through Alibaba Group Holding Ltd (NYSE:BABA). He felt that the Alibaba IPO was a learning experience for foreign markets such as Australia, Europe and United States. They can now fully appreciate the size of the Chinese e-commerce market and its consumers.
“I think there is broad understanding now in the US and elsewhere about how big the Chinese e-commerce market is,” he said.
Lavin stated that the rising trend of the Chinese consumers and e-commerce platforms are hard to miss. “The two biggest business trends in the world today are rise of the Chinese consumer and the rise of e-commerce, Alibaba sits in the middle of both of those,” he said. As Alibaba Group Holding Ltd (NYSE:BABA) is an amalgamation of these two trends, it has the ability to serve as a launching pad for consumer brands to dive into the Chinese market. Though there are multiple Chinese e-commerce platforms such as JD.Com Inc (ADR) (NASDAQ:JD) and E-Commerce China Dangdang Inc (ADR) (NYSE:DANG), Alibaba’s massive strength and market size sets it apart from the others.
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