Alibaba Is Your 2nd Chinese-American of the Week

Alibaba Is Your 2nd Chinese-American of the Week

Who is Alibaba? Ali Baba use to be an Arabian folk tale hero who knew how to outwit forty thieves. Today, Alibaba is a different kind of thief: a thief of Wall Street.

Alibaba is the dominant e-commerce company in China and recently had it’s initial public offering (IPO) right in the wallet of America: the New York Stock Exchange. In it’s first day of trading NYSE: BABA became the most valued technology company behind only Apple, Google, and Microsoft. It’s already smothered Amazon, IBM, Intel, and TheFacebook.com like a cat on a piece of paper on the ground.

What do all these numbers mean? It means Alibaba is a big insatiable dog with a big bucket of gravy.

Why so big? How about the fact that they basically have solved and have been solving online shopping in China. China who’s online shopping population is over 300 million Chinese. And that’s just a quarter of its potential. Other companies struggle to make a splash in China, but Alibaba has taken over.

Imagine this: 300 million people spend 1 dollar a day for 365 days. That’s $109.5B just like that. Estimates in the US put Real-American online shoppers at about 200M growing at about 5M a year (essentially akin to the rate of inflation). That includes that time your aunt accidentally handed over her credit card to some dude without meaning to. So China has barely scratched the surface of shopping for pet food online.

Alibaba also owns:

  • alibaba.com – handling import and export sales for over 240 countries
  • taobao.com – the eBay of China and 3rd most popular website in China
  • tmall.com – the business-to-consumer face of Taobao (8th most visited site)
  • A ton of other sites Real-Americans don’t care about

Best of all, they’ve truly embraced the new Real-American way of making money without making anything.

Also, Chinese are notoriously loyal and obedient so once they start shopping with one vendor, they are often married to them for life.

Skip this section if you hate math

Ok, so here’s some math to hurt your Real-American head:

The average salary in the private sector for a Chinese national is $4,755 (28,752 yuan). Assuming they spend 80% of what they make, they’re annual spend is $3,804. Now if 20% of their spending is online that’s $760. Assuming they have 787 million workers according to the World Bank, that’s $598 billion spent online. That’s almost 2 billion iPhone 6’s (64GB).

What do all these numbers mean? It means Alibaba is a big insatiable dog with a big bucket of gravy.

It also means this site should probably change it’s mission statement from being the Definitive Guide for Being Chinese for Real-Americans to being the Definitive Guide for Chinese to Stop Worrying about Those Real-American losers.

About the CAWA

The CAWA (Chinese-American of the Week Award) celebrates silent overachievement, the pinnacle of what it means to be Chinese-American. The CAWA has no monetary value and does not actually come with a physical award. You do not get a T-shirt. You cannot get a free meal with it. You may not even want to list it on you resume. We only ask that you not disparage the award. Like most awards, it means very little as the true reward is surviving the bitterness of any journey. It is also not selected by a committee or even a set of experts but by some random chance that this could be your week. To qualify, you do have to be some kind of Chinese in some way (mixed is okay) and you must reside in America (United States only, not that THOSE OTHER Americas). If you know someone deserving of a CAWA, please nominate them in the comments below, on our Facebook page, or via Twitter.

Picture Credit: Thomas Lombard

With decades of experience being Chinese in America, I am fully qualified to tell Real-Americans everything they need to know about being Chinese.