The Phenomenal Rise of Alibaba

According to Forbes, Alibaba Group is set to list before 2015. The rise of the US$40bn company is nothing short of meteoric, given it took just 10 years for the firm to become the number one e-commerce brand in China. BMI believes the technology juggernaut is well-positioned to capture the growing e-commerce market in China given favourable industry trends and superior business model.

Favourable Macro Conditions

BMI believes the macroeconomic forces in China are very supportive of a booming e-commerce market. Firstly, the demographic structure of China itself comprises mainly of the 20-24 years age segment. This group of consumers are characterized by their high level of literacy, are internet savvy and are also the consumer segment that will see the greatest appreciation in purchasing power over the next three to five years as they transit from school to the workforce. More importantly, these groups of consumers are less resistant to the concept of online shopping, which hitherto has prevented the e-commerce industry from reaching its full growth potential.

Bulk Of China Population In the 20-29 Years Age Group
2012 Chinese Population ('000)

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This article is tagged to:
Sector: Telecommunications
Geography: China

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