L2 Research Director Danielle Bailey spoke on CCTV America this week about Alibaba’s IPO and plans for capturing a share of the US market. Bailey said Alibaba poses no immediate threat to competitors such as Amazon, as the average US consumer outside of Wall Street knows little about the Chinese brand. Even 11main.com, a US B2C site Alibaba launched earlier this year, is a small experiment to test the waters. In the long run, however, Alibaba’s post-IPO cash position enables it to buy a competitor such as eBay. And Bailey said it is more likely that Alibaba will purchase its way into consumers’ minds rather than attempt to build it. Furthermore, Alibaba is a lifeline for brands hoping to crack the China market, and it could easily expand those relationships overseas to the US. See full video here. Danielle Bailey will be presenting a talk titled “Is Alibaba Winning?” at L2’s “Winners and Losers in a Digital Age” clinic on September 23.
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