3 Reasons Why Alibaba’s Massive IPO matters for people in the Fashion Industry
Sometimes the worlds of fashion and business can seem so far apart, one dominated by creatives and the other by MBAs. The reality however is that fashion and business are more interconnected than we think and Alibaba’s massive IPO this morning proves this point.
Here are 3 reasons why Alibaba’s IPO, the largest ever in history matters for people in the fashion industry:
- You are now officially in the business of E Commerce – Every existing fashion house today is now in the business of e-commerce and not just retail. The Alibaba IPO shows that the internet is connecting people in the fastest ways possible. Unlike in the past where the only way to scale a business was to open more locations, the way to grow a fashion business today is online. If you are not in the business of e-commerce already, then get on it.
- Your business needs to move faster – Alibaba broke through to global consumers by meeting the universal need of connecting suppliers and consumers and doing this quickly and easily. Jack Ma, the CEO of Alibaba mentioned that Alibaba’s focus over the next decade will be to bring progress to the world and not only to China. What this means is that the distance between suppliers and consumers is growing shorter every day. The winners of the future will be those that can shorten the time from when a product or service is produced to the time when it reaches its consumers.
- Look to the MINT Countries Next – The e-commerce industry which took almost 2 decades to mature in the US, developed in half that time in China due to improving technologies. In addition to this, while less than 50% of the Chinese population has access to the internet, its 600 million internet users completely dwarfed the volume of e commerce in the US due to the sheer size of its market. The next countries with similar structures that show signs of a comparable trend will be Mexico, Indonesia, Nigeria and Turkey) so look to these countries next.
If you’re like me, you’ve already made the critical connections between fashion and e-commerce and what this means for our future. The successful fashion houses of tomorrow will not be in the business of e-commerce and not just retail.