Trusty ally

MaryAnn Richardson, founder of Makeup By MaryAnn, a UK company that sells makeup brushes and other fashion items, says that having a presence on Alibaba, China's largest e-commerce platform, has helped several Western companies engage, converse and participate in business negotiations with entrepreneurs from diverse backgrounds. "Having access to so many companies under one platform, especially those who are able to produce bespoke items at affordable margins, is great for start-up businesses," she says adding that it also gives companies good brand exposure.

Building trust in China's marketplace has been the biggest contribution of Chinese e-commerce companies such as Alibaba Group and Tencent Holdings Ltd.

Online shopping in China is no longer just clicking the "buy" button and has more to do with interactions, discussions on the latest trends and rating of products and services. Such interactions and communications create trust and more importantly empower the buyers, rather than sellers, experts say.

Scotland-based Sumayyah Nasaruddin, founder of Love to Dress, a fashion company, says that the Chinese e-commerce platforms have been of great help to her fledgling business. "I design long sleeve Western maxi dresses for Muslim women and manufacture my products in China using suppliers identified through the Alibaba platform," she says.

"The products and services on platforms such as Alibaba are not only easy to use but also help us check the authenticity of the other party in China. E-commerce has made it possible for us to cross borders without wasting time and money."

Chinese companies are also equally vocal in their praise for such platforms.

"I initially started using Alibaba as an additional platform to sell my products to overseas clients. But that has changed. It is now my primary source of overseas business and accounts for more than 50 percent of my total profits and orders," says Zhou Mingwang, owner of Yiwu Mingwang Co Ltd, a small export-oriented company in Yiwu, Zhejiang province. In the past five years, Zhou has received more than 200 requests every year from foreign buyers through Alibaba, with nearly 50 of these customers becoming full-time and regular clients.

"Alibaba has provided a regulated platform for companies to expand abroad and is also a hallmark of trust for foreign buyers," Zhou says.

He, however, feels that Alibaba should lift the threshold for merchants to sell online. "I think they can set even higher standards for future entrants to ensure a fair playing field as well as a good reputation for the marketplace," he says.