CHINA ECONOMIC SLOWDOWN WITH JACK MA

Who doesn’t know Jack Ma… The current richest man in China caused by his agile Alibaba’s IPO move in the US market. We know that currently, China’s economy has been in the slowdown state, but what does Jack Ma think about this slowdown? Let’s take a look …

Don’t You Worry About the Slowdown…

In Ma’s opinion, the ‘over-reacted’ attention from all of the world reflects the global importance of Chinese economy. He added that continuing to strive for the double digit GDP growth rates of the past is unrealistic.

He said that the current GDP growth pattern was not sustainable and in fact, if China continued to pursue the high growth rates of the past, China would pay a high price. The environmental damage of the high rate of growth has been severe, and there are other advantages to embracing the economic slowdown.

“China’s economic development is no longer in need of increasing its numbers, but of increasing its quality. China is the world’s second-largest economy, and even with a GDP growth rate of 5%, the growth rate is more than double that of developed economies,” said Ma.

China is shifting from an investment-based economy to a consumption-based one. Long ago, Chinese people has the trademark of saving, saving and saving for their descendant. But now, it’s kinda change as you know that China exports a LOT of goods! But, how about the local consumption? They’re not really balance.

“All in all, China’s economy has immense potential. It will not be easy, but China’s future ‘economic miracle’ will lie in its ability to boost productivity and its use of big data and Internet technology to stimulate domestic consumption and generate exponential development opportunities,” wrote Ma.

Alibaba is such a huge retailer in China. The company estimates that there are 367 million users on the service spending around $1,056 per person annually. These numbers have come under deep analysis recently, and while they seem reasonable, Alibaba created a new website, which is a partnership with branding firm VSA Partners, as a response. The new site is described as a way to better communicate the company to its Western investors.

“The majority of our products and services are not accessible outside China, which makes it difficult for our overseas shareholders and stakeholders to fully understand the company and what it is like to be an Alibaba customer,” said Ma in his letter. “As a result, many are trying to understand us through the lens of an outsider and may not have a full or accurate understanding of who we are and what we do.”

Alibaba will most likely play a key role in the shift to a consumer-based economy, as 9% of all retail sales are down online, according to Alibaba, and Ma expects that to grow. One of the great examples is the “Single Day” discount on November 11th (11.11). Every year on 11.11, there are many great discounts from any range of goods, including many international brands. People usually standby the computer from 11.55 pm on the previous day to snatch the things that they want, due to the limited stock and you know China is the BIGGEST populated country in the world. Moreover, foreigners inside China can also join the event.