“Abandon all attachment to the results of action and attain supreme peace.” (The Bhagavad Gita)
E-commerce is going to flourish in India. Sri Narendra Modi is quite focused on the development of India and he had met Jack Ma, Founder of Alibaba on March 30, 2015. Jack Ma has visited India before. The discussions between Modi and Mr. Ma were held on e-commerce. E-commerce is also known as electronic commerce and the companies use technology like mobile ecommerce, electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange, inventory management systems and automated data collection systems. They have chalked out a model. It is suitable for India and China. He pointed out that companies like Flipkart and Amazon had worked on business to commerce model.
Mr. Jack Ma (also known as Ma Yun) is a Chinese Enterpreuner and philanthropist. He is the Founder and Executive Chairman of Alibaba Group. He is the 18th richest man in the world. According to Bloomberg Billionaire’s index, he is the richest man in China as per November 14 report. The Alibaba group has various activities like e-commerce, online auction hosting, online money transfers and mobile e-commerce. Alibaba had already discussed with Snapdeal in September 2014. This is a company based in India.
Mr. Ma got success by working at Alibaba. He was a school teacher. Now he is the richest man of China. He showed interest in trade relations with India, the land of rich cultural heritage. He had come as a delegate last November. He bought 25% shares of Paytm, a company doing mobile commerce. Jack Ma expressed his desire of investing in India. This is really great news for India, a country seeking foreign investment under the leadership of Sri Narendra Modi.
This is the right time for investment in e-commerce. India’s market for e-commerce is expanding. Still there are people who think this boom in e-commerce is unreal. Mr. Ma thinks India is a great place for business of Alibaba. He knew that the rate of growth of our economy has declined. He admitted that Alibaba had delayed in identifying the true potential of India. Alibaba has enlisted many Indian small businesses in its website. Mr. Ma had planned to help small business all over the world. Alibaba is presently the largest online and mobile ecommerce company in 2013. Alibaba Group is worth $24.4 billion. According to a source from Alibaba group, they expressed their desire to work as they did in China. They are willing to work for the ecosystem. Alibaba is going to buy Micromax and ShopClues. The Chinese ecommerce giant is showing keen interest in India. They are checking all the options. Mr. Ma discussed about the importance of mobile telephony and e-commerce for running small and medium enterprises.
Mr. Jack Ma talked with Sri Modi for 45 minutes. Modi shared his plans of marketing organic farm goods. He wants to promote the handicrafts and products of SME in the global market. The good news is Mr. Ma agreed with Sri Modi and wanted to support the SME.
Mr. Jack Ma wanted to support B2B model. In a B2B ecommerce, the business entity consists of seller and buyer. In this model, the business can build relationship with its distributor, retailers and suppliers. The products are electronics, shipping, motor vehicles, petrochemicals, paper, office products, food and agriculture. This has close connection with government’s policy of e-commerce. The BJP government does not support B2C e-commerce model. In a B2C model, the consumer can directly do business with an organization. A consumer visits the website. Then he /she chooses from the catalogue. The business organization gets an email. Then the goods ordered by him/her are sent to the consumer. They fear that it may allow the global retailers to dominate the market.
During the discussion between Sri Modi and Mr. Ma, the head of Alibaba Group shared how Indian companies can get benefit from e-payment, data analytics and logistics. Data analytics is a science of checking raw data. We can conclude from this analysis of data. Many companies use it for taking decisions. Logistics is the management of the way goods flow from its origin to the consumers. It moves according to the need of the consumers. The products in logistics are physical items e.g. food, materials, animals, equipment, liquid. There are also abstract items like time, information, particles and energy.
Jack Ma ‘s Alibaba group is going to help the small scale industries of India. If this agreement materializes, then it will surely help India prosper in the field of e-commerce. We will get a foothold in the international market. Many exporters will get income and many small organizations will get into limelight.
— NDTV (@ndtv) March 30, 2015
At the meeting of Modi and Ma, Mr. Amitabh Kant was present. Mr. Kant is the secretary of Department of Industrial Policy and Promotion. Modi showed his last respect to Lee Yuan Yew, first prime minister of Singapore. This showed both have respect towards neighbouring country , Singapore.
Mr. Ma had visited India in November 2014. He is keen on investing in India. He has seen bright prospects of business expansion under the leadership of Sri Narendra Modi. Alibaba wants to invest in small new age companies. They want dividends in the long term from the market of e-commerce. It is expected that the group will invest billions of dollars in India. Ma was inspired by the visit of Mark Zuckerberg, head of Facebook and Amazon’s Jeff Bezos.
There is high optimism among both the countries and we wish the agreement will help both sides grow and develop a good business relationship. We expect expansion of e-commerce in India. We would like to see Sri Modi’s vision come true.