Alibaba delivered $15 billion GMV in the 11.11 shopping
festival this year. It seems that Chinese e-commerce consumption and industry
are keep performing with engine and potential. However, I would argue that the
abnormally flouring of China e-commerce industry actually hurt Chinese economy
in long term. Reasons are:
- This 11.11 festival which was created from scratch for the
single people shopping is purely marketing. No technical innovation and culture behind.
- Many of the products sold on Taobao are cheap and low-quality
which actually lowers Chinese consumers’ life quality.
- 11.11 is simply pre-loading driving by pricing. No excremental
value created for consumers.
- Chinese consumers have been educated to shop online rather
than shopping on street. Less consumers
are willing to go to the offline stores, causing less traffic to the brick and
mortal stores which eventually are squeezed out of the game.
- Alibaba’s domination in the industry eliminates the power
of suppliers. 90% of the suppliers in Alibaba’s marketplace make very bloody
profit now, maybe worse in the future.
Therefore, the consumers, suppliers and industries as a
whole are harmed by Alibaba. $15 billion is just false booming. And the Chinese consumption and economy are becoming
more deformed.
http://www2.alizila.com/alibaba-getting-early-start-its-1111-mega-sale
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