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Alibaba IPO benefits Western brands. Here is why. | Observer Intelligence
Welcome! Friday - Apr 19, 2019

Alibaba IPO benefits Western brands. Here is why.

Alibaba IPO Benifits Western Brands - Observer Solutions Blog

Western retailers and brands who are looking for market access to Chinese shoppers could potentially benefit from Alibaba’s IPO in the US..Here is why.

Alibaba has approximately 500 million registered users, including 60 million daily visitors on its Taobao marketplace by June 2013. The company now is eager to open its extensive user base to Western brands to cash in by meeting their hunger for overseas brands.

In addition to attracting Western brands to its domestic platforms like Tmall, Alibaba recently launched a new site – Tmall International – which exclusively targets brands and merchants outside China and allows them to sell directly to Chinese online shoppers from their home counties.

Alibaba’s IPO could also benefit Western brands that are concerned about online counterfeit products and intellectual property issues. At the moment, many Western brands that have tried to do e-commerce in China will admit to facing great challenges from counterfeiters and individual sellers that are usually selling fake products on its Taobao platform. As Alibaba goes public in the US, the company will inevitably need to deal with the regulations regarding intellectual property protection and meet a higher standard in the US..

Alibaba’s international appetite is getting more access to popular Western brands, especially high-end and luxury brands, to meet demand among millions of Chinese consumers for products that are not yet available in China. This will bring new opportunities for Western brands to gain new channels to fulfill the voracious appetites of China’s emerging middle class.
Originally published on TheNextWeb, by ObserverSolutions

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