HOW TAOBAO ALLEVIATED CHINESE COUNTRYSIDE POVERTY

Founded in 1999 by Jack Ma, Alibaba group is one of the top E-commerce company in the world: its B2C application, Taobao, offers over a billion registered products to more than half billion users. Since 2010, aiming to expand international markets, Aliexpress, a platform allows foreign saler to connect with consumers primarily in BRICS countries.   Economy reform made the county ready for E-commerce Since mid-80s China puts efforts in developing its infrastructure: improving power production and distribution, building roads, highways and railways. The macro level economy school of thought has argued that public investment in infrastructure, particularly in transportation “increases the efficiency and profitability of business sector”. These massive infrastructure investments dramatically shortened transportation time and increased the country global supply chain efficiency, helping China become the first exporter in the world. In addition to roads, power grid was greatly expanded, providing electricity and network to Chinese countryside and allowing massive adoption of the mobile phone. Many villages jumped from shared landline to private Smartphone. The rise of the E-commerce industry These investments made the bed for two revolutions: the rise of E-commerce and, concomitantly delivery companies.  In 2003 Taobao was launched, with its headquarters in Hangzhou, a city in the east of Shanghai. It has offered services such as free listing to sellers, instant messaging to facilitate communication and Alipay (an online payment solution). eBay withdrew from...

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