The Chinese e-commerce business Alibaba Group is trying to facilitate corporate activities for Americans. While the firm was established in China over a decade-and-a-half ago, it was done so with the intention of being used by global customers.
And today, China is a very different place to how it was at that time, especially with regards to class divides. Then it was much more working-class dominated for example; and today the paradigm has shifted to the middle class. Furthermore, now that the middle class has expanded so, it is equal in size to the entire American population!!! Added to that is the fact that it is anticipated that figure will double by 2022.
All of this means that the consumer market is increasing and will continue to do so with a huge escalation in disposable income. What US businesses now have to do is figure out how these people are spending their money.
And what the US businesses in this category should probably do is focus on the fact that there has been a tenfold growth of cross-border purchases from China’s online shoppers just in the last five years. It is that market that the US would be wise to tap into.