Alibaba.com Looks To India For New Partnership

China's Alibaba.com has inked a deal in with Infomedia India Limited to benefit small and medium-size enterprises in India.

Prakash Iyer, managing director of Infomedia, said in a press statement, "As India's largest Yellow Pages company – and now as part of the Network 18 group – Infomedia is delighted to bring Alibaba.com's strength and global reach to Indian businesses. We have a long history of helping SMEs grow their business and this partnership will help Indian companies realize their fullest potential worldwide. The Infomedia-Alibaba.com partnership will bring value to Indian SMEs by giving them a larger, multi-media business platform encompassing domestic and global trade services."

India has more than 8 million SMEs, which account for almost 40% of India's industrial output and employ around 30 million people. It is estimated that 3 million SMEs are engaged in B2B trade and around 1 million are in the export business. Alibaba.com has more than 400,000 members in India, already making it one of the country's largest B2B online marketplaces by member count. Alibaba.com launched a special India Channel in October 2007 to help Indian suppliers find local and global buyers for their products and services. The India Channel has been well received by members, with more than 20,000 Indian companies signing up each month since January 2008.The Alibaba.com and Infomedia partnership will combine the power of traditional print publishing with online media and e-commerce, providing Indian SMEs with a one-stop solution for global and domestic trade. Together they will create a strong online community of Indian business people and provide them with a single cost-effective channel to promote their products and source from quality suppliers in India and around the world. It will also provide SMEs in India with the latest industry news and technical developments in multi-media formats.

Alibaba.com brings Open Sesame to India

Alibaba.com, the world’s leading online marketplace for international trade, hosted its first Open Sesame event in India at the Grand Hyatt, Mumbai.

Held on the sidelines of The 5th China Products Exhibition on 14th December, the event attracted over 100 folks from the small business segment from across the country. The event was also an opportunity for Alibaba.com’s Indian members to get together and share their experiences in international trade and e-commerce.

Speaking on the occasion, Brian Wong, Senior Director of International Business Development and Marketing, Alibaba.com, said, “India is a priority market for Alibaba.com in 2008 and beyond. With about 300,000 registered users, India is one of Alibaba.com’s most important markets worldwide and the biggest in Asia for its international marketplace.”

Alibaba.com is focused on helping small and medium suppliers and exporters from India promote their products to the world. It will also help Indian SMBs become more competitive by making their import and export business easier in a growing global economy.

It recently launched a new Indian channel, www.alibaba.com/countrysearch/IN/India.html, which provides a platform for international buyers to source goods and services from India. “We want to become the leading online marketplace for international trade to and from India. We plan to double our Indian membership base in 2008 and are actively looking for local partners in India to help us reach more local small and medium enterprises,” added Wong.

Meanwhile, this is the first time Alibaba.com has launched a country-specific channel on its international marketplace, highlighting the importance of Indian products in today’s global trade landscape.

India a Priority Market for Alibaba!

Alibaba.com, claimed to be the number one online marketplace for China and international trade, last month held its first 'Open Sesame' event in the country along the sidelines of the fifth 'China Products Exhibition' in Mumbai.

With the objective of helping small and medium suppliers/exporters from India promote their products to the world and expand internationally, the event witnessed participation from over 100 small exporters from India. It was an occasion for Indian members of Alibaba to converge, and share their experiences in international trade and e-commerce.

During the event, Brian Wong, senior director (International Business Development and Marketing) of Alibaba.com, said, "India is a priority market for Alibaba.com in 2008 and beyond. We want to become the number one online marketplace for international trade to- and from- India."

"We plan to double our Indian membership base in 2008, and are actively looking for local partners in India to help us reach more local small and medium enterprises."

With a membership base of nearly 300,000 registered users, India figures in the higher-ups on Alibaba's list of priority markets worldwide. The way they look at it, local partners would only help them expand their membership (the current target being 3 million small and medium businesses in the country), and better serve local customers.

Almost a month down the line, have they managed to rope-in local partner/s? Wong declined to comment except that in future, they intend to set-up sales and customer service capabilities in India, either directly or through local partners.

What's Alibaba's India plan, considering they've also launched their first country-specific (India) channel at www.alibaba.com/countrysearch/IN/India.html?

Alibaba has different types of passes on offer for suppliers and exporters, but they claim their suppliers are a class apart because they have to undergo authentication and verification by independent third party agencies. In the event suppliers fail the test, Alibaba retains the option to reject their membership application/s.

Currently, Alibaba offers two types of passes to its suppliers; one, the Gold Supplier membership package meant for suppliers based in mainland China, Hong Kong, and Macau, and the other, the International TrustPass membership package meant for suppliers based outside of China.

The Gold Supplier membership is available for a one- to two- year term and comes for RMB 50,000 annually, whereas the International TrustPass membership is available for a one- to three- year term and costs $589 annually.

The benefits arising out of these memberships are many: for instance, member suppliers can have their own Web site or 'premium storefront' on Alibaba.com, where they can display their company profile and product information; Gold Supplier members can get 'priority placement' in buyers' search results vis-a-vis International TrustPass members; all members can get high quality customer service and support; and they can purchase other value-added services like premium placements, and so on.

However in Alibaba's experience, more than 85 percent buyers prefer to do business with International TrustPass members.

Says Sanjay Ranawat of Krish Exports (an Indian manufacturer and exporter of stainless steel untensils and kitchenware, and an International TrustPass member since 2006), "I believe Alibaba.com is the number one B2B portal. It is more reliable than any other trade Web site, magazine, newsletter, or promotion company, and is more effective in targeting the right customers than trade shows."

What about existing competition in the B2B space? Back in 2000, there were many competitors but after the Internet bubble went bust, Wong believes Alibaba is now truly the leading B2B marketplace both in China and globally.

He has statistics to prove his point. In 2006, they were the largest online B2B company in China, basis the number of registered users, according to iResearch. And their combined international and China marketplaces are the most-visited Web sites in the world in two business categories; namely, e-commerce, and international business and trade, as per Alexa rankings.

Wong believes they have several pluses. For starters, the ability to provide suppliers and buyers with a one-stop shop for establishing online presence, identifying and interacting with potential trade partners, and conducting business on the Internet.

Also, their ability to transcend geographical and time barriers, making global sourcing available 24x7, their market leadership which creates a strong network effect, and most importantly, their positioning as a global trade model with local features and services, which helps them in being really close to their customers and members, to know exactly what it is that they want.