Foreign firms lackluster on Alibaba´s rural approach - Ben Cavender

Ben Cavender

Preparations for China´s New Years shopping spree has started, and Alibaba focuses on the previous under-served rural areas. But foreign firm have not reacted very enthusiastically on this move, says retail analyst Ben Cavender to Dow Jones, since it is a very long-term approach.

Dow Jones:

"I think what we are seeing right now is the major-ecommerce players like Alibaba really laying the groundwork for future growth," according to Ben Cavender, principal at China Market Research Group. 

"Capturing these rural consumers who previously had very poor access to brands and products is going to be critical for future revenue growth given how competitive the e-commerce market already is in first and second tier cities," he told Dow Jones... 

At this stage, however, any presence on these sites may have to be regarded as a marketing exercise rather than a revenue-generating activity, Cavender advised.

More in Dow Jones.

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