The Mexican government and Alibaba have signed a deal which will see products from Mexico being sold online to Chinese consumers. The e-commerce partnership was signed by the chairman of Alibaba, Jack Ma, and the president of Mexico, Enrique Pena Nieto.
“By partnering with Alibaba, we can expand Mexico’s export options in China and in Asia more broadly, while enhancing Mexican SMEs’ knowledge of e-commerce and cross-border trade,” a statement released by President Peña Nieto announcing the agreement read.
Ministry of Economy
Under the deal Alibaba and the Mexican Ministry of Economy will work hand in hand to assist small and medium-sized enterprises in getting their products delivered to Chinese businesses. In the agreement’s initial phase, Alibaba will develop a program tailored to the Mexican enterprises with a view to helping them take advantage of the online retail giant’s business-to-business trading platform.
Additionally the Chinese e-commerce giant will offer a payment and logistics platform in order to allow cross-border e-commerce as well as entice tourists from China to visit Mexico. A report by Euromonitor International, a research firm, indicates that Chinese online travel sales are expected to increase by 20% this year compared to a year ago and will reach a figure of $86.9 billion. According to Alibaba, Chinese tourists are projected to embark on a total of 700 million trips in the course of the next half a decade.
Growing middle class
The deal between Alibaba and Mexico is the most recent among a series of agreements the Chinese online retail giant has inked and which are geared towards getting business organizations from all over the world to sell their services and products to consumers in China through its platform. Due to the burgeoning middle class in China which possesses lots of discretionary income, Chinese residents are developing an appetite for international travel and products.
Earlier in the year Alibaba unveiled an annual summit in Detroit, Michigan, which was dubbed Gateway 17. U.S. entrepreneurs numbering about 3,000 attended the summit with a view to learning how they can sell their products to Chinese consumers. Another similar event is scheduled to be held in Canada later in the month.
In the recent past Alibaba also entered an agreement with Marriott International with a view to allowing Chinese consumers to use the travel website and mobile app of Alibaba to make bookings at any of the 5,700 Marriott facilities around the globe. The deal will also allow Chinese consumers to use Alibaba’s payment platform, Alipay, to pay even when outside China.