Aibaba.com, the global B2B e-commerce platform of Alibaba Group, held an online summit yesterday for SMEs in Pakistan to help them usher in a period of economic development and foreign trade exports growth as the Covid-19 pandemic stabilizes in the country.
More than 2,000 export-focused businesses from Pakistan joined the “Seize the Chance” Alibaba.com Seller Online Summit during which Alibaba.com presented a comprehensive B2B export digital solution while elaborating on the use of online trade shows, buyer trends, and showcasing local success stories of Pakistan-based merchants who have leveraged Alibaba.com to boost their business globally.
There was a special sharing session about apparel export trends and policies of the Government by Mr. Rana Naseer, President of the Apparel and Sportswear Association who said, “E-commerce business is the trend and it’s important to follow it now.”
Mr. Stephen Kuo – Head of Asia Pacific, Alibaba.com, shared some insights about local SMEs and global buyer trends. He also showcased solutions for SMEs in Pakistan to accelerate their digital transformation and find a long-term sustainable business.
Mr. Charles Rogers, Expert in User Experience Design of Alibaba.com, spoke about the buyer mindset and what Pakistani SMEs can do to satisfy the buyer’s demand. Ms. Judy Ke, an Alibaba.com Certified Lecturer elaborated on how local SMEs can leverage online trade shows.
In line with Alibaba Group Chairman Daniel Zhang’s address earlier this year about SMEs being the livelihood of an economy, Alibaba.com, one of the world’s leading B2B e-commerce platforms, is taking steps to help SMEs recover from the economic situation.
Mr. Stephen Kuo, Head of Asia Pacific, Alibaba.com said, “We want to help more and more SMEs go global. We believe that digital transformation is the need of the hour and we aim to provide various kinds of tools to enable suppliers to digitalize their products and also promotions and services to be discovered by global buyers. We are also focussing on online trade shows to ensure buyers can find suppliers through videos, live meetings, and newly launched livestreams to create minimal disruption to business while also building sustainability.”
A recent survey on Alibaba.com showed that most global buyers are searching for products through search engines or e-commerce platforms. With traditional brick-and-mortar businesses facing challenges during the global pandemic, Alibaba.com is leveraging the power of e-commerce to enable SMEs all over the world.
At this summit, Mr. Tayyab Ul Murtaza, CEO of Proelite International, shared his company’s story. They started out as a small apparel manufacturing unit catering primarily to domestic buyers. He then discovered Alibaba.com and realized the potential of digital transformation to cater to buyers worldwide.
Muhammad Naeem, CEO of Shamraz Sports based in Sialkot, Pakistan, spoke about how going digital helped them to quickly adapt during the pandemic and create sustainability for their business. He shared how a proactive approach towards digitalization, especially with Alibaba.com, helped them not just survive but actually grow during the pandemic.
ALIBABA AND THE MERRY MEN -1
FOR THE TICKET SIZE OF ALIBABA TRADE DEALS TO BE VIABLE ON E-COMM,1ST ALIBABA HAS TO TIE UP WITH LOW COST FREIGHT FORWARDERS TO KEY EXPORT HUBS – FROM WHERE SEVERAL TRANSSHIPMENT OPTIONS ARE THERE THE CUTTING EDGE IS QUALITY AND FOB PRICE OF GOODS + COST AND TIME FOR LOGISTICS.SO THE QUALITY IS THE CORE COMPETENCE OF THE EXPORTER AND THE LOGISTICS
IS THE KEN OF ALIBABA !
THEN ALIBABA HAS TO HOST VIRTUAL TRADE FAIRS,WHERE PAKISTANI EXPORTERS CAN SHOWCASE PRODUCTS,INNOVATION,TECH,LABOUR STANDARDS ETC.
ALIBABA HAS TO TIE UP WITH LOW COST EXPORT FINANCING OPTIONS,AS IN FACTORING.FORFAITING ETC.,TO PROVIDE AN ALT TO PAKISTANI EXPORTERS AND OFFER FREE TRAINING AND MARKET INT ON THE SAME TO PAKISTANI EXPORTERS VIA VIRTUAL SEMINARS
ALIBABA CAN SHARE MARKET, FASHION AND CUSTOMER INTELLIGENCE WITH PAKISTANI EXPORTERS, FREE OF COST
ALIBABA CAN CREATE THE EXPORT MARKET,AS FOR EXAMPLE IN EU,WHERE POWER AND GAS HAS HIT THE ROOF,AND MANUFACTURING WILL CLOSE DOWN.SMALL RETAIL STORES IN EU, CAN ONLY USE ALIBABA TO CONNECT TO PAKISTANI SME EXPORTERS TO IMPORT QUALITY AT LOW COST ON DEFERRED PAYMENT.SO ALIBABA WILL DO VIRTUAL SEMINARS TO MARKET PAKISTAN TO THESE IMPORTERS AND THEN LINK THE 2 PARTIES.
ALIBABA NEEDS TO ALSO,DEVELOP A SYSTEM OF RATING,OF PAKISTANI EXPORTERS AND THEIR IMPORTERS, ON VARIED PARAMETERS,SO THAT PAYMENT AND CREDIT RISK CAN BE ACCURATELY,CAPTURED AND FORECASTED.THIS WILL AID IN EXPORT FINANCING AND THE LOWERING OF THE COST OF EXPORT FINANCING AND ALSO AID ALIBABA,IN FUNDING THE POST EXPORT FINANCE OF GOLD RATED EXPORTERS AND IMPORTERS (BASED ON RATING AND WITH GROUP CREDIT INSURANCE).
ALIBABA IS CASH RICH,AND CAN ENTER INTO THE POST SHIPMENT EXPORT MARKET – TO USE IS TREASURY,AT MUCH HIGHER ROI (AND NIL RISK) AND ALSO BOOST EXPORT VOLUMES
THIS WILL ALSO AID ALIBABA IN OFFERING CREDIT INSURANCE TO PAKISTANI EXPORTERS,WHICH THEN ALIBABA CAN REINSURE,ON A GROUP BASIS,BASED ON A RATING CLASS OR GEOGRAPHY OR PRODUCT SEGMENT.
THIS WILL ALSO AID ALIBABA IN FINDING A LOGISTICS VENDOR WHO CAN ISSUE MULTIMODAL BL AT KARACHI WAREHOUSE,O/S PORT QASIM FOR GOLD RATED EXPORTERS AND IMPORTERS,WHICH THEN,CAN BE DISCOUNTED BY THE EXPORTERS WITH THE BANKS OR THIRD PARTIES.dindooohindoo
ALIBABA AND THE MERRY MEN – PART 2
THE BIGGEST PROBLEM FACED BY PAKISTANI EXPORTERS,IS IMPORT OF INPUTS,LC FOR PURCHASES AND FX RISK FOR EXIM
THE ONLY ENTITY IN THE WORLD,TO WHOM THIS PAIN,CAN BE OUTSOURCED IS ALIBABA
ALIBABA HAS MONEY,AND CAN RAISE CASH FROM ANY NATION,IN THE WORLD
SO,FOR GOLD RATED EXPORTERS OF PAKISTAN,IT CAN OFFER ACCOMODATION FINANCING OF IMPORTED RAW MATERIALS,BASED ON 5-10% MARGIN, AND THE LC IS OPENED,FROM SINGAPORE OR HK OR SHANGHAI. ALSO,THE LC CAN BE OPENED,IN ANY CURRENCY OF THE WORLD,AS ALIBABA WILL HEDGE IT,TO THE USD/PKR. AS AN ADDITIONAL SECURITY THE PAKISTANI EXPORTER CAN ROUTE THE EXPORT DOCUMENTS, VIA ALIABABA, SO ALIBABA CAN COLLECT THE IMPORT DUES FROM THE EXPORTER ON A DEFERRED BASIS,AND ALLOW THE EXPORTER TO CHOOSE THE DATE OF REMITTANCE,WHEN THE PKR APPRECIATES.
MOST IMPORTANTLY,SINCE ALIBABA WILL BE A PAYMENT GATEWAY FOR EXPORTS AND IMPORTS FROM AND INTO PAKISTAN GARMENT SECTOR,IT CAN DO OFFSET HEDGES AND CLEAR DUES WITH PAKISTANI EXPORTERS IN PKR – THUS MAKING THEM EXIT THE PKR-USD MARKET.AT THE SAME TIME,ALIBABA TREASURY,CAN PLAY THE FX MARKET,BOTH WAYS
THIS WILL REMOVE A HUGE BURDEN,FROM THE PAKISTANI GARMENT EXPORT SECTOR,AND CAUSE AN EXPLOSIVE SURGE, IN ALIBABA EXPORTS,FROM PAKISTAN OF ALL ITEMS – AND THIS MODEL
CAN BE USED ALL OVER THE DEVELOPING WORLD.
THE CRUX = ALIBABA HAS TO OFFER COMPREHENSIVE SOLUTIONS,ACROSS THE SUPPLY CHAIN,TO LOWER COST AND OBVIATE RISK – AND LET THE EXPORTER,FOCUS ON MANUFACTURING EXCELLENCE,AND INNOVATION AND CREATIVITY.
THAT IS THE WIN-WIN-WIN FOR EXPORTER-ALIABABA AND IMPORTER IN EU/ASIA.dindooohindoo