Alibaba is making a push to the South Asian textile and clothing powerhouse by targeting Bangladeshi companies to sell more of their products on its website, as reported by NikkeiAsia.
(Photo : by ERIC LALMAND/BELGA MAG/AFP via Getty Images)
Illustration picture shows the inauguration of the logistics platform of Cainiao, the logistics branch of Alibaba, Monday 08 November 2021 at Liege airport in Grace-Hollogne.
The Chinese e-commerce leader is offering Bangladeshi manufacturers to promote their products overseas through its platform for an annual fee. Alibaba is putting more focus on small and medium-sized enterprises.
This will give the platform a boost, at the same time, providing Bangladesh with another channel to make more export earnings from its garments as it struggles with dwindling foreign currency reserves.
Alibaba has been operating in Bangladesh for 20 years now, but so far, only 160 companies are supplying products through its website.
A Special Proposal
Alibaba offers a special package to the participating companies, in which they only need to pay $5,000 annual membership fee if the number of newly listed suppliers reaches 30 or more. The fee will be adjusted to $4,800 if 50 or more suppliers sign up.
However, many companies think the charge is very high and are looking into pushing for a discount.
The platform also offered to make a Made in Bangladesh page on its website to showcase the goods from the country. According to the Chinese platform, it will help Bangladeshi companies gain quick access to nontraditional export markets as a buffer to help with climate change, recessional, and geopolitical ordering.
Alibaba also added that it would help the country be the top apparel product and sourcing destination for eCommerce websites, retailers, and online marketplaces globally.
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A Welcome Offer
Despite the concerns over the annual fee, many SME representatives welcome the proposal. They believe that a separate page for Bangladesh will be a huge benefit. In addition, most of them think that the stronger digital presence they have, the better for their market.
Still, there seems to be a need for a cross-country study regarding the fees, facilities, and conditions before the deal pushes through.
With this move, Alibaba aims to help Bangladesh become an even more attractive destination for global businesses, as well as to strengthen its own position in the South Asian market.
Through this initiative, the company hopes to create more opportunities for small and medium-sized businesses in the country. Alibaba is confident that this initiative will create an even bigger impact on local economies by helping entrepreneurs boost sales and easily reach out to customers worldwide.
With these efforts, it aims to become one of the most preferred platforms for small business owners in Bangladesh and other countries across the South Asia region. Now, we just have to wait and see if Bangladeshi SMEs will agree to the proposal or will they find a middle ground.
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