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    Ali: Alipay'S Full Access To US Businesses

    2015/1/19 20:42:00 7

    AliAlipayUS Merchant

    According to two sources, with the help of Alipay, the world's largest online retailer uses Chinese consumers' name card to attract American partners.

    Alipay also allows us retailers and Chinese consumers to avoid foreign currency related troubles. Chinese consumers pay in Renminbi; American companies get us dollars.

    For example, if Chinese consumers buy a pair of shoes from Saks, Alipay will be responsible for financial transactions. These shoes will enter Alipay's cargo point in the United States and then turn to China. After clearance, the final delivery is usually handled by local partners.

    The Alibaba expanded in this conservative way in the United States, which is in sharp contrast to the industry's speculation that it may launch a direct attack on the US market.

    The strategy in this plan aims at enhancing Alibaba's visibility in the US, gaining important goodwill and laying the foundation for long-term development. These were the first time that executives and executives who had interacted directly with the company revealed to Reuters.

    The core of the strategy is Alibaba and Alipay's attempt to deal with some of the largest US retailers dealing with sales, payment and distribution for China, including Neiman Marcus Group and Saks. The two companies confirmed the agreement but refused to disclose how to implement it.

    Alibaba and Alipay The solution for American enterprises is called ePass. The service includes customer pre process, that is, a "fast track" to shorten delivery days. Da and analysts John Choi and Alex Liu believe that this function is the biggest advantage of Alibaba relative to Jingdong and other rivals.

    According to research firm Borderfree data, Alibaba and Alipay have signed trial agreements with department stores Neiman, Saks, Macys Inc, and its Bloomingdale department store, Ann Taylor, fashion boutique website Gilt, and clothing brand Aeropostale, which is responsible for payment and delivery to China. The companies declined to comment, but Neiman, Saks and Ann Taylor confirmed the signing of the agreement.

    Alibaba will also work with the emerging online store Shoprunner and Borderfree, a retail service provider, to attract Chinese consumers. Alibaba holds some Shoprunner shares.

       Alibaba Marketing activities are also being prepared to enhance the visibility of its B2B wholesale platform Alibaba.com in the US business, in order to facilitate these enterprises to purchase and sell on the platform.

    Insiders pointed out that it is not in China. Domestic sales In the US, the US's annual sales of cross-border consumer goods to China are only $15 billion, and the figure is expected to increase to 1 trillion and 800 billion yuan (US $291 billion) by 2020.

    The number of middle class in China is more than 250 million and continues to grow, thanks to the government's policy to promote a shift towards a consumption driven economy.

    Alibaba spent 10 months helping overseas retailers build stores in China. Its B2C website, Tmall International (Tmall Global), has not responded very well. According to the company, more than 5000 brands and 650 distributors were stationed in the platform, but only 30 sales exceeded 10 million yuan.

    However, there are signs of growth at the moment. According to the data provided by Alibaba to Reuters, Costco Wholesale, which entered Tmall international in November last year, sold more than 40 million yuan in the first month of operation. The store has attracted about 90 million visitors since its launch.


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