Jack Ma shares vision on future of e-commerce in China
Jack Ma, founder of Alibaba Group and chairman of the General Association of Zhejiang Entrepreneurs, delivers a keynote speech at the fifth World Zhejiang Entrepreneurs Convention held in Hangzhou on Nov 13. [Photo provided to chinadaily.com.cn]
The record sales seen during this year's "Double 11" shopping spree are a testament to China's strong consumer spending power and have given Alibaba confidence amidst sluggish economic growth.
Jack Ma, founder of Alibaba Group and chairman of the General Association of Zhejiang Entrepreneurs, spoke at the fifth World Zhejiang Entrepreneurs Convention held in Hangzhou on Nov 13.
Alibaba's shopping frenzy ended on Monday with record high sales of 268.4 billion yuan ($38.4 billion) indicating that consumption and e-commerce in China are in a healthy position.
Most enterprises are not fully aware of the revolutionary changes that e-commerce has brought to China, said Ma.
The growth rate in number of consumers and consumer spending in third, fourth and fifth tier cities during this year's shopping festival surpassed that of first and second tier cities for the first time.
E-commerce drives the development of China's real economy. According to Ma, Alibaba's e-commerce business alone will generate sales of nearly $1 trillion this year, more than 80 percent of which are a result of China's real economy. Zhejiang businessmen ought to make good use of this opportunity, he said.
In the past, logistics proved a cumbersome cost for the Chinese government, but relying on private industry, the country was able to develop an advanced and extremely efficient logistics system in just 10 years' time. The country's express system is able to handle 60 billion packages a year.
Small and medium-sized enterprises are eligible to receive loans of more than 300 billion yuan through latest mobile payment services to aid in the preparation of goods during the "Double 11" period.
Ma stressed the increasing role that digital economy will play in promoting the development of real economy over the next 10 years. Chinese entrepreneurs should closely follow the latest digital economy developments and technological advances.
The importance of advanced manufacturing and modern service industries should also not be overlooked, Ma added, Zhejiang entrepreneurs should contribute to the Belt and Road Initiative and adapt to new business environments.
Cultivating skilled workers, building an open business environment, and promoting mutual learning and exchange are all necessary for the success of Chinese entrepreneurship.