Jack Ma’s new packaged food enterprise – Ben Cavender

 

Ben Cavender

Jack Ma, Alibaba’s founder, surprisingly got public again by investing in “Hangzhou Ma’s Kitchen Food”, selling prepared food. Business analyst Ben Cavender looks at the new move at CNN. “Packaged meals are becoming increasingly popular,” he told CNN.

CNN:

The Chinese market for ready meals — food that is ready to heat and eat — was worth about 71.1 billion yuan ($9.9 billion) last year, up about 28% from 2018, according to Euromonitor International.

Demand for other types of pre-packaged food has also shot up, with the market for meal kits — food boxes that require simple assembly or cooking — nearly tripling from 10.6 billion yuan ($1.5 billion) in 2018 to 29.1 billion yuan ($4 billion) in 2022, Euromonitor data showed.

While the focus of Ma’s venture is not immediately clear, “this is a space that has a tremendous amount of room for innovation,” said Ben Cavender, managing director of China Market Research Group, a strategy consultancy.

“Packaged meals are becoming increasingly popular,” he told CNN. “Consumers in some cases are choosing these meals as they are trading down and not dining out as much, but are also choosing them for access to variety and due to time constraints.”

He said habits formed during the pandemic — to stay in and opt for convenient food options — as well as an economic slowdown in China were likely prompting more people to turn their attention to the space.

“If, instead, this ends up being more about sales of fresh foods like fruit, there is also demand for a wider variety of high-quality options and reasonable prices, and this is a space where his ties to e-commerce … would add value,” Cavender added.

More at CNN.

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How the state gets grip on housing, education and health care – Arthur Kroeber

 

Arthur Kroeber

The Chinese state is extending its grip on previously private investments in different areas like housing, health care, and education, similar to its crackdown on tech sectors in the past, says leading economist Arthur Kroeber to Reuters. Investors now prefer to turn to those industries, as they have the state as a backup.

Reuters:

China’s recent sweep of the medical sector came as a shock to many investors who had thought the end of Beijing’s three-year regulatory purge of the property and tech sectors meant there would be no more industry-wide crackdowns as policymakers prioritised economic recovery.

Several government bodies in July launched a year-long anti-corruption campaign into the medical system, making clear that China’s drive to deliver affordable housing, education and healthcare to its masses was more important.

That forced many investors to quickly draw parallels with last year’s crusade against private tutoring and a long-running one against tycoon Jack Ma’s consumer finance firm Ant Group.

The one unanimous conclusion they came to was that Beijing wants a greater state presence in these sectors.

“The underlying principle is that healthcare is kind of like a social service that should principally be in state hands,” said Arthur Kroeber, partner and head of research at Gavekal in New York. Kroeber says the crackdowns are about “defining what the state does, what the private sector does, and creating a more limited sandbox for the private sector to play in.”

“This links to the idea of common prosperity because it’s the state’s job to guarantee a level of provision of basic services, whether it’s education or healthcare, so it’s important for the state to have a role,” he said.

That has left investors now picking the state over the private sector.

More in Reuters.

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How China started to control its tech companies – Shaun Rein

 

Shaun Rein

When China’s authorities cracked down on Jack Ma’s Alibaba, it was only the start of ongoing efforts to control tech companies and manage their data streams, says Shanghai-based business analyst Shaun Rein to WRAL. “Now Chinese people are quite concerned about data privacy because Alibaba and Tencent have so much data – even more data than the government,” he adds.

WRAL:

China’s Communist Party leaders are uneasy with the growing influence of big technology firms. Key issues are monopolistic practices and handling of user data.

Until recently, tech firms operated in a regulatory gray zone, with relative freedom to create their business models, demand merchants and vendors sign exclusive contracts with their platforms and collect user data to better understand their customers.

After China introduced health monitoring and quarantine apps during the pandemic, it became clear that tech companies like e-commerce giant Alibaba and gaming company Tencent controlled huge amounts of data, said Shaun Rein, founder and managing director of China Market Research Group in Shanghai.

“I think it was in the last year and a half that you can start to see just how much power these technology companies have,” said Rein.

Alibaba Group Holding recently was fined a record $2.8 billion over antitrust violations. Other big tech companies have been fined or investigated for alleged anti-competitive behavior and lapses in financial disclosure.

“Two years ago Chinese consumers didn’t care, they thought the convenience of apps outweighed any negative benefits,” Rein said. “But now Chinese people are quite concerned about data privacy, because Alibaba and Tencent have so much data – even more data than the government.”

Rein believes stricter oversight of the technology industry will make it more sustainable, with fairer competition that will benefit consumers.

More at WRAL.

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Jack Ma: yes, a dressing down, but no real problems – Shaun Rein

 

Shaun Rein

Western media have been speculating about the whereabouts of Alibaba’s founder Jack Ma after he disappeared from the limelight months ago. Ma did get a dressing down from the government after he ushered criticism, says Shanghai-based business analyst Shaun Rein to AP. Ma is laying down, but there is no reason he is in real problems, Rein adds.

AP:

Some see Ma’s travails as a warning from the ruling Communist Party that even a wildly successful entrepreneur can’t publicly defy regulators. But finance experts said President Xi Jinping’s government already was uneasy about Alibaba’s dominance in retailing. As for Ant, regulators worried it might add to financial risks seen by the ruling party as one of the biggest threats to China’s economic growth.

Shaun Rein, a business consultant in Shanghai who said he meets Alibaba managers and people who know Ma, said none of them reports the billionaire is in legal trouble.

“They spanked him. He’s learned his lesson, and that’s why he’s been quiet for the past two months,” said Rein, founder of China Market Research Group. “Some of his friends told me they can’t believe how stupid he was.”

Ma, 56, stepped down as Alibaba’s chairman in 2019 but is part of the Alibaba Partnership, a 36-member group with the right to nominate a majority of its board of directors. He is one of the biggest shareholders…

The anti-monopoly investigation of Alibaba announced in December targets its policy that prohibits vendors and other business partners from dealing with its competitors.

Foreign investors were rattled, but Chinese businesspeople are “quite happy” with the crackdown, said Rein.

“A lot of people saw Alibaba and Tencent as monopolies and stifling competition,” he said.

Ma’s high profile is unusual in a society where folk wisdom warns, “a man fears getting famous like a pig fears getting fat.” Others such as Tencent founder Ma Huateng, who is no relation to Jack Ma, are known for avoiding reporters and public appearances.

More in AP.

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Regulatory actions against Ant Group nerves investors – Shaun Rein

 

Shaun Rein

The massive US$34.5 billion IPO by Jack Ma’s Ant Group has been derailed by regulatory action, days before its listing, and that does not make the investors happy, says political analyst Shaun Rein at AP. The decision also might rattle Chinese entrepreneurs who were considering selling shares on their own country’s market, said Rein.

AP:

The planned market launch of Ant, spun off from Alibaba Group, the world’s biggest e-commerce company by sales volume, symbolized China’s rebound and added to a string of smaller offerings by biotech and other new companies. In an unusual move, it was due to trade in both Shanghai for mainland investors and in Hong Kong for international buyers.

A brief official announcement Tuesday cited regulatory changes. It gave no details, but authorities have tightened controls on lending by online finance platforms and raised the amount of capital they must have.

The abrupt action might make investors more cautious about China, said Shaun Rein of China Market Research Group in Shanghai, whose clients include hedge funds and institutional investors. He said they are left to wonder whether regulators were worried about risks or acted out of irritation at Ant founder Jack Ma, China’s richest entrepreneur, who publicly complained they hamper innovation.

“Whatever it is, it doesn’t make the system look good,” Rein said. “It makes a lot of global institutional investors more nervous about investing into China.”

Ant said Wednesday it will return subscription fees to investors, suggesting it might be some time before the company is allowed to offer shares to the public…

The decision also might rattle Chinese entrepreneurs who were considering selling shares on their own country’s market, said Rein.

“Until yesterday, every entrepreneur I talked to wanted to go public in the mainland, because they thought valuations would be better, and it might make them look better in front of the government,” said Rein. “Now, after Jack Ma, I’m not sure what they’re going to do.”

More at AP. 

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2020 triggered off unprecedented creation of wealth – Rupert Hoogewerf

 

Rupert Hoogewerf

The world never saw so much reaction of wealth as during 2020, says Rupert Hoogewerf, chief researcher of the Hurun China Rich List, despite the coronavirus crisis triggered off by COVID-19. Even seasoned rich-researcher Hoogewerf is amazed by the number of billionaires China created over the past months, he tells Devdiscourse, citing the newly released Hurun China Rich List 2020.

Devdiscourse:

Ant is expected to create more mega-rich through what is likely to be the world’s biggest IPO, as it plans to raise an estimated $35 billion through a dual listing in Shanghai and Hong Kong. The combined wealth of those on the Hurun China list – with an individual wealth cut-off of 2 billion yuan ($299.14 million) – totaled $4 trillion, more than the annual gross domestic product (GDP) of Germany, according to Rupert Hoogewerf, the Hurun Report’s chairman.

China is minting new billionaires at a record pace despite an economy bruised by the coronavirus pandemic, thanks to booming share prices and a spate of new stock listings, according to a list released on Tuesday. The Hurun China Rich List 2020 also highlights China’s accelerated shift away from traditional sectors like manufacturing and real estate, towards e-commerce, fintech and other new economy industries.

Jack Ma, founder of Alibaba, retained the top spot for the third year in a row, with his personal wealth jumping 45% to $58.8 billion partly due to the impending mega-listing of fintech giant Ant Group . Ant is expected to create more mega-rich through what is likely to be the world’s biggest IPO, as it plans to raise an estimated $35 billion through a dual listing in Shanghai and Hong Kong.

The combined wealth of those on the Hurun China list – with an individual wealth cut-off of 2 billion yuan ($299.14 million) – totaled $4 trillion, more than the annual gross domestic product (GDP) of Germany, according to Rupert Hoogewerf, the Hurun Report’s chairman. More wealth was created this year than in the previous five years combined, with China’s rich-listers adding $1.5 trillion, roughly half the size of Britain’s GDP.

Booming stock markets and a flurry of new listings have created five new dollar billionaires in China a week for the past year, Hoogewerf said in a statement. “The world has never seen this much wealth created in just one year. China’s entrepreneurs have done much better than expected. Despite Covid-19 they have risen to record levels.”

According to a separate estimate by PwC and UBS, only billionaires in the United States possessed greater combined wealth than those in mainland China. China has accelerated capital market reforms to aid a virus-hit economy, accelerate economic restructuring and fund a “tech war” with the United States.

More at Devdiscourse.

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Meet China’s newest richest person, Zhong Shanshan – Rupert Hoogewerf

Rupert Hoogewerf

Zhong Shanshan, founder of the bottled water company Nongfu Spring, pushed Alibaba’s Jack Ma from his position as the richest in China. Rupert Hoogewerf, chief researcher of the Hurun China Rich List, explains how Zhong made it to the top, at CNN Business. Hoogewerf expects a new boom in billionaires from China, he says.

CNN Business:

Zhong’s new status also puts him ahead of Pony Ma, who founded Tencent. Unlike Jack Ma and Pony Ma, Zhong is not a tech entrepreneur. Outside of his stake in Nongfu Spring, he is the head of a vaccine maker, Beijing Wantai Biological Pharmacy. That company went public in Shanghai this year, which also helped boost Zhong’s wealth.

“You would have typically expected the number one in China to come from [technology],” said Rupert Hoogewerf, chairman of wealth research firm Hurun Report.

Zhong is also known for being more low-profile and reclusive compared to other top business leaders, which has earned him the nickname “lone wolf.”

“He’s not known to have many entrepreneur friends,” said Hoogewerf, a longtime China watcher who is based in Shanghai. “He just kind of gets on with his own business.”

But even prior to his latest success, Zhong’s track record was impressive.

“Zhong Shanshan is one of the few people in China to not just build one $10 billion business, but two $10 billion businesses,” said Hoogewerf. “It’s pretty remarkable.”

Zhong’s ascent underscores the rapid pace of wealth creation in China.

Earlier this year, China was already home to most of the world’s billionaires, with more than the United States and India combined, according to a global rich list compiled by the Hurun Report….

A report released by Deloitte on Wednesday said that “several other developments are set to sustain the prevailing trend of listings in the Chinese Mainland and Hong Kong over the rest of this year,” including the approval of cross-listing rules and a new tech index in Hong Kong.

That will likely spawn even more billionaires in China, Hoogewerf predicts.

He estimates that about 100 new billionaires will be created in China this year because of the IPO boom. That’s “one every four days. Two a week,” he said.

More at CNN Business.

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Ant Group's IPO: the largest ever, and its background - Shaun Rein

 

Jack Ma's Ant Group is heading for a listing at the Hong Kong and Shanghai stock markets, for possibly up to 300 billion US dollars, the largest in the world ever. Business analyst Shaun Rein looks into the company's background and its largest success in China, Alipay, on the BBC. 

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Jack Ma's departure: a loss for Alibaba - Shaun Rein

Shaun Rein

Alibaba will not be the same after its charismatic chairman Jack Ma has left, says business analyst Shaun Rein, according to the China Daily." "I'm not sure that people want to meet Daniel Zhang in the same way they want to meet Jack Ma."

The China Daily:

Analysts were cautious about whether his departure would dent Alibaba's globalization ambition of serving 2 billion users and creating 100 million jobs by 2036 amid economic uncertainty and rising protectionist sentiment. 

"He has got the charisma to call the CEO of a big company in America and say, 'Let's sit down and talk'," Shaun Rein, managing director of consultancy China Market Research Group, told Nikkei Asian Review. "I'm not sure that people want to meet Daniel Zhang in the same way they want to meet Jack Ma." 

Ma has been explicit about devoting more time and energy to education and philanthropy upon his resignation as Alibaba chairman. His inspiring speeches have been praised by many people across China.

More in the China Daily.

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New retail: changing the shopping mindset - Ashley Dudarenok

Ashley Dudarenok

New retail is changing the mindset of both the Chinese consumers and the retailers, writes marketing expert Ashley Dudarenok. Some brands are finally getting the idea, but for traditional retailers, there is still a lot of work to be done, she says in the China Economic Review.

Ashley Dudarenok:

These days, Chinese consumers aren’t as target-oriented and purpose-driven as they used to be when shopping in physical spaces. Since they can very quickly and easily find specific items while shopping online, they don’t go to stores with the same mindset except for grocery shopping. They care more about exploring physical locations at their leisure. 

When consumers go to a shopping mall, they don’t normally go to buy specific brands. Instead, they go to have fun with their children, learn things, and have experiences like dining out or going to a movie. Despite this, physical stores haven’t yet mastered the art of creating unforgettable consumer experiences that keep consumers coming back. New Retail, when done well, does. But what is New Retail? 

New Retail, which Jack Ma defined as “the integration of online, offline, logistics and data across a single value chain.” uses technology to merge online, offline, logistics, big data, cloud computing, entertainment, news and social media into a seamless shopping experience. Ma introduced the term in 2016 along with New Technology, New Manufacturing, New Finance and New Energy. 

Many of the technological advances and digital business approaches of New Retail were well underway in many other markets as far back as 2005 or earlier. Within China, JD.com and Tencent have their own versions of it which they call Boundaryless Retail and Smart Retail respectively. 

It includes initiatives like omnichannel retail, experiential retail, integrated social media, click and collect, same day or one hour deliveries, unstaffed stores, fully automated warehouses and more. It enables people to, for example, purchase an item online at a discount using a code from an online influencer, pick it up from a smart locker the next day and then take it to a physical store 3 months later for repairs. 

Internationally, brands and businesses that are excelling in this area include John Lewis, Waitrose, Amazon, Walmart, Carrefour, IKEA, Target, Tesco, eBay, Nike and Decathlon as well as smaller brands like Warby Parker, Orvis, Welden and Value City Furniture. 

New Retail is consumer-centric and driven by data to improve a shopper’s experience and save them time and money. However, it also improves operational efficiency and results in cost savings for the retailer.

Much more in the China Economic Review. Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

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US billionaires keep global top, despite China gains - Rupert Hoogewerf

Rupert Hoogewerf

The number of billionaires from China might be growing fast, US billionaires still earn far more, says Hurun China Rich List founder Rupert Hoogewerf to the Washington Post. The wealthiest in China was e-commerce giant Alibaba's founder Jack Ma, the world's 22nd-most-wealthy person, with US$39 billion.

The Washington Post:

The biggest gains in wealth last year came in the areas of technology, media and telecommunications, followed by real estate and other investments, manufacturing and retailing. 

The wealthiest in China was e-commerce giant Alibaba's founder Jack Ma, the world's 22nd-most-wealthy person, with $39 billion. Pony Ma Huateng of the Internet giant Tencent Holdings, with $38 billion, and Xu Jiayin of property developer Evergrande, with $37 billion, were close behind. 

Though people in China and other Asian nations are steadily gaining in wealth, Amazon founder Jeff Bezos topped the global chart for the second year running, with wealth estimated by the Hurun rich list at $147 billion. Bill Gates ranked second, with $96 billion, and Warren Buffett was third, with $88 billion. 

Gates' fortune rose by $6 billion in 2018 despite his enthusiasm for philanthropy, said Hurun Report Chief Executive Officer Rupert Hoogewerf. 

President Donald Trump's wealth fell by $500 million last year, the report said, to $3 billion, or 793rd. 

The only Asian among the 10 richest people in the world was Mukesh Ambani of Indian conglomerate Reliance Industries, who ranked No. 8 with wealth estimated at $54 billion. 

"Poor stock market performances and an appreciating dollar were the main reasons for this year's record drop in billionaires," Hoogewerf said in a statement. "Despite the strong dollar and its tax cuts, the USA added only 13 billionaires, but made it harder for the rest of the world to make the cut." 

Overall, the report said, there were 2,470 billionaires in the world, down 224 from last year. Their total overall wealth fell by $950 billion from the year before, to $9.6 trillion, because of stock market gyrations and a strong U.S. dollar, it said. 

Hoogewerf said he believes that the world's billionaires may number more than 6,000 people, since many seek to hide the extent of their wealth, especially in the Middle East. Forty billionaires from last year's list died in 2018. 

The newly minted Chinese billionaires included Colin Huang Zheng of e-commerce platform Pinduoduo and restaurant-group owner Zhang Yong and his, wife Shu Ping. Others were Zhang Yiming of ByteDance, an Internet technology firm valued at $75 billion, and Zhan Ketuan of bitcoin miner Bitmain.

More in the Washington Post.

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Can the next generation take over Alibaba from Jack Ma? - Shaun Rein

Shaun Rein

Alibaba's chairman Jack Ma announced he will turn over the reins of his company to the next generation of executives next year. But business analyst Shaun Rein, author of The End of Cheap China, Revised and Updated: Economic and Cultural Trends That Will Disrupt the World, wonders if the new generation takes over Ma's magic spell over staff, users and investors, he tells to Inkstone News. 

Inkstone News:

Analysts say while Alibaba has some of the best executives in China’s tech world, it will be difficult for its next-generation leaders to fill Ma’s shoes.

“Ma is critically important to the company,” said China Market Research's Rein. “He is the strategic driver. He is the face of the company. He makes governments and businesses comfortable with working with it.”

“Daniel Zhang does not create the same warm and fuzzy feelings,” Rein said. “Consumers trust Jack Ma. It is part of their loyalty towards Alibaba.”

More at Inkstone News.

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How Jack Ma changed China - William Bao Bean

William Bao Bean

Traditionally China's youngsters wanted a job with the government, but Alibaba's Jack Ma changed that perspective and starting a startup became the choice of many, says William Bao Bean, a Shanghai-based partner at venture capital firm SOS, one of the largest VC's, to Bloomberg. How Jack Ma changed China.

Bloomberg:

“The China startup scene wouldn’t exist in the same way without Jack Ma,” said William Bao Bean, a Shanghai-based partner at venture capital firm SOSV. “The celebrity of Jack Ma and the success of Alibaba made startups an acceptable career choice, which has fueled one of the biggest technology markets in the world." 

Ma wasn’t just successful. He broke the mold for China’s business leaders, typically faceless chiefs running mammoth state-owned enterprises like PetroChina and China Mobile. He dressed up like Michael Jackson and tried the moon walk. He wore a three-foot feather Mohawk and makeup to perform at a company party. And he dispensed Yoda-like axioms that were collected in dozens of management books. 

"To many he’s the face of China’s internet -- no one really knows what Pony Ma looks like," said Bean, referring to the CEO of Tencent Holdings Ltd.

More at Bloomberg.

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How Jack Ma smartly plans his succession - Shaun Rein

Shaun Rein

Alibaba's chairman Jack Ma has unveiled his eagerly awaited succession plan, including a transfer of power to the current CEO Daniel Zhang. A very smart move, says business analyst Shaun Rein, author of The War for China's Wallet: Profiting from the New World Order to the Nikkei Asian Review.

Nikkei Asia Review.

Shaun Rein, managing director at China Market Research Group in Shanghai, said the announcement shows that Ma "is empowering Zhang and giving an orderly transition." Rein called the move "very smart" because it "reduces uncertainty over who is in charge to make decisions" at the company. 

"Ma won't loom over Zhang for years," he said. 

"This is the way to inform business partners and government officials that Daniel Zhang and other leaders are the right people to talk to because, right now, everybody wants to talk to Jack Ma," Rein said. 

"By doing this, he is empowering his successors, which is important because Alibaba has a really strong team and it's time for them to take on more power as Alibaba has moved into other countries, like India, and moved into new divisions, like cloud computing and finance," Rein said. In his letter, Ma said he wants to return to education, "which excites me with so much blessing because this is what I love to do." Ma graduated from Hangzhou Normal University in 1988 and continued to teach English there for several years.

More in the Nikkei Asia Review.

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Jack Ma's retirement plan: a unique step - Rupert Hoogewerf

Rupert Hoogewerf

Chairman Jack Ma of Alibaba has been one of his kind in developing his company, and his retirement plan is no different, says Rupert Hoogewerf, the Shanghai-based founder of the Hurun Report, publisher of the China Rich List to the US News. "There's only Bill Gates who has done the same."

US News:

Ma, who turned 54 on Monday, has long flagged plans to step back, insisting that Alibaba management should be relatively young and his retirement is not expected to affect the running of the company.

But it is still extremely rare for a founder of big and transformative tech firm, especially one with a cult-like status like Ma, to retire so early. 

"There's only Bill Gates who has done the same. No other tech founder in the world has just resigned like that at the top," said Rupert Hoogewerf, Shanghai-based founder of the Hurun Report, which publishes an annual influential list of China's richest people. 

Hoogewerf added that in China, Ma was a figure like no other, with friends ranging from movie stars to billionaire moguls, though he often outshone them all. "He's the big one, he's the one that brings them together."

Ma will give up the chairman role in exactly one year on Sept. 10, 2019 and complete his current term on Alibaba's board of directors following the company's annual general meeting in 2020, the company said. He relinquished the role of chief executive in 2013.

More in US News.

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WeChat: an unavoidable magnitude - Matthew Brennan

Matthew Brennan

Tencent's social platform WeChat is so huge, nobody can avoid the giant in China, says WeChat expert Matthew Brennan to Sixth Tone. Even Alibaba's Jack Ma, Tencent's largest competitor, has to use the platform.

Sixth Tone:

Matthew Brennan — co-founder of consultancy China Channel, which provides insight into WeChat for foreign firms — agrees that WeChat is “pretty much unavoidable” for anyone who wants to function normally in Chinese society. He cites the case of Alibaba founder Jack Ma, who famously announced in 2013 that he would be quitting WeChat and launching the company’s own messaging app. The app turned out to be a total failure, and Ma ended up reluctantly admitting in a livestreamed interview last year that he was back to using his competitor. “Even if you hate it as much as Jack Ma does, you have to use WeChat,” Brennan tells Sixth Tone.

More in Sixth Tone.

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The amazing shows by China's tycoons - Jeffrey Towson

Jeffrey Towson

The world looked with awe when Alibaba's chairman Jack Ma performed as Michael Jackson during a massive show for employees and customers last week. But Chinese tycoons like to put up a show, says Beida business professor Jeffrey Towson to CNN. Western CEO's seldom let themselves go (perhaps with the exception of former ABN Amro CEO Gerrit Zalm).

CNN:

Robin Li, the founder and CEO of internet giant Baidu, likes to mix things up. 

He turned his performance at the company's summer party into a family affair this year. His daughter sang "Call Me Maybe" while accompanied by professional dancers. Proud papa, dressed in jeans and a polo shirt, strolled on stage at the end of the song, strumming the last few bars of the song on an acoustic guitar while his daughter crooned along. 

That performance was understated compared with a 2015 extravaganza, when Li donned a studded gold lamé outfit to sing and play the drums in a dazzling routine -- complete with smoke machines and a laser show -- at the company's annual gala. 

Many other Chinese business leaders like to put on a show, according to Jeffrey Towson, a private equity investor and professor at Peking University. 

"You see these kinds of crazy events all the time," he said. The outlandish galas allow bosses to be playful and self deprecating while also demonstrating how successful the company has been, according to Towson.

More in CNN.

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Few US jobs from Alibaba - Ben Cavender

Ben Cavender

Chairman Jack Ma of Alibaba promised US president-elect Donald Trump a million US jobs, but what he might get, says retail analyst Ben Cavender at CNN, are very, very few real jobs. "I don't see a lot of job creation happening."

CNN:

Ma has been pushing since 2015 to increase U.S. sales to China on Alibaba. But getting one million American brands onto its platforms would require a 142-fold increase in business. 

Realistically, what will likely happen is Mom and Pop stores will set up e-commerce stores on Alibaba as a side business to tap into the China market, says Ben Cavender, director with China Market Research Group. 

"I don't see a lot of job creation happening," Cavender said. 

While Ma did not present any concrete plans for job creation, his meeting with Trump was a good "lobby photo opp," says Duncan Clark, chairman of consultancy firm BDA China and author of "Alibaba: The House That Jack Ma Built". 

It could also be seen as a way to curry favor with U.S. regulators. The U.S. Trade Representative put Taobao back on its "notorious markets" list last month, citing an "unacceptably high" level of fake goods. 

Analysts say sophisticated, middle class Chinese consumers have a growing appetite for foreign goods that are more trustworthy than Asian products. Small U.S. companies that specialize in nutrition, supplements, and baby products should do well on Alibaba's platforms, said Cavender.

More at CNN.

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