In today’s internet-driven world, businesses must learn to innovate and adapt to consumers’ changing needs
Jack Ma says Alibaba will not tolerate fake goods and is working hard to support manufacturers who invest in their own brands
What I shared with our investors last week was an observation: that the dynamics between some brands and their manufacturing partners, and brands and their customers, are shifting due to economic and technological developments.
These trends may challenge the business model of some established brands. That’s reality
First, Chinese manufacturers face declining exports because demand from Western markets is not what it used to be. Every day, I see small businesses in China suffer because orders from their long-time customers are half of what they once were. Yet these businesses have made investments in factories, equipment and people. They must find new ways to adapt to this changing environment.
Second, the internet has given consumers ever-increasing access to products without the need for complex and costly distribution channels. Manufacturers in China are increasingly using the internet to tap into the vast domestic market. Many of these firms have developed their own online-only brands with quality products for Chinese consumers.
What I said last week was that these trends may challenge the business model of some established brands. That’s reality.
