Here's Why Alibaba's Alipay Will Prove Quite Beneficial For US Businesses

Alibaba Group Holding Ltd BABA might be thinking about revolutionizing e-retailing in the US and other developed markets by offering a different user experience, but according to Buyology” Author, Martin Lindstrom, its Alibaba’s subsidiary payment service arm, Alipay, that has the potential to actually revolutionize America. Martin thinks that through Alipay, Chinese customers will be able to buy US goods, which are currently in high demand in China.

Lindstrom was recently on Bloomberg to discuss Alipay’s potential and the changing preferences of the Chinese customer.

“This is an ongoing trend because products coming out of the US is seen as the next generation of brands in China. First you had the luxury brands, now what’s happening is, if I can buy things fresh out of the US and bring it back again, I feel like I am really important,” Lindstrom said.

When asked about Chinese government’s response to this growing trend, Lindstrom said, “ They want to contain everything inside China. That’s the reason why right now they are going through an enormous process, where they are educating Chinese people in developing brands. They have no idea about how to develop brands […] So, this is the last that we’ll see before the Chinese brands start to take over.”

“The middle class right now is saving more money than they have done before, we haven’t seen that trend before and the second thing they are doing right now is to start to buy household goods, much more than they did in the past […]” Lindstrom added.

Shares of Alibaba were recently trading at $112.10, down 0.50%.