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Alibaba’s websites are popular in part because, as in the United States, shopping online from home can save time and money. More than 10 percent of retail purchases in China are made online, higher than the 7 percent in the States. Jack has likened e-commerce to a “dessert” in the United States, whereas in China it is the “main course.” Why? Shopping in China was never a pleasurable experience. Until the arrival of multinational companies like Carrefour and Walmart, there were very few retailing chains or shopping malls. Most domestic retailers started as state-owned enterprises (SOEs). With access to a ready supply of financing, provided by local governments or state-owned banks, they tended to view shoppers as a mere inconvenience. Other retailers were set up by real estate companies more concerned with the value of the land underneath their store than with the customers within.

Excerpted from page 8 of ‘Alibaba: The House that Jack Ma built’ by Duncan Clark