Alibaba Group’s success
In the evening of September the 19th, 2014, the Chinese biggest e-commerce site listed stock in New York. It brought a feast of capital that night, and the IPO raised an amount of 20 billion dollar.How can Alibaba be so success in 15 years?

First, It appeared in the correct time in the correct country. During the beginnng of 21st centery, the economy of China developed rapidly, many small companies were founded and they needed a channel to gain all kinds of information. Alibaba provided a platform to gain all kinds of information. Also, Alibaba built a bridge between enterprises to help them trade successfully.

Second, it created a new mode of e-commerce. It does not produce products themselves so that they do not need capital for R&D and warehouses, they play a role of ‘middleman’ in every transaction. It also provides a wholesale market that neither Amazon nor ebay can do that.

Next, Alibaba’s customers cost very low to enjoy their services. It offers free registration, and it costs nothing for ordinary members to transact through Alibaba’s retail platforms. For TrustPass members, it costs no more than $400 per year to carry out domestic trades. But because of the large number of transaction. Alibaba still earns a lot.

As Alibaba listed stock in New York, it attracts lots of investors because it provides a tool to open up China’s emerging middle class market. Also, this event is the symbol of the coming of China’s internet era.