NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

Fran O'Sullivan: Digital sales open a door to Chinese consumers

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·NZ Herald·
27 Apr, 2018 05:00 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The next few years will offer a good opportunity to sell more to China, says Daniel Zhang. Photo / Bloomberg

The next few years will offer a good opportunity to sell more to China, says Daniel Zhang. Photo / Bloomberg

The most important thing on Alibaba CEO Daniel Zhang's plate is to "think about the future — not only about today".

While legendary founder Jack Ma waves Alibaba's flag around the globe, Zhang spends his time in the business of what is (by volume) possibly the world's largest retailer.

"I think the most important thing is that you have to think about the future, not only about today. So we always say that 'we work for now, we invest for tomorrow and we incubate for the future'.

"From time to time I come across a lot of new ideas. I will throw them to my team — maybe some are workable some not workable.

"But I always said we need to create new business and think about the changing demand of our customers and technologies.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"Is it possible to come across some disruptive model?"

Given this mindset, it's not surprising that the chief executive who presides over the Chinese e-commerce behemoth isn't fazed by talk of a global trade war between the United States and China.

US President Donald Trump and Chinese President Xi Jinping have threatened tariffs on each other's respective imports.

Advertisement
Advertise with NZME.

But Zhang puts his faith in the power of the consumer.

The key question, says Zhang, is "do customers want global trade?"

When it comes to the Chinese consumer market — where there is rapidly growing demand — the answer is a resounding "yes".

Says Zhang: "If the supply from one country is not ready, this means opportunities for other countries because the demand is already there."

Discover more

Business

Government on right road to get NZ moving

06 Apr 05:00 PM
Opinion

Fran O'Sullivan: No early winner in trade war

10 Apr 08:44 AM
Business

Fran O'Sullivan: Doubters Trumped by positive results

13 Apr 05:00 PM
Opinion

O'Sullivan: Ardern's oil ban short-sighted

17 Apr 05:00 PM

Alibaba is in a technology arms race to create a global digital trading platform which extends far beyond China, which is the mainstay of its business, and the six south Asian nations where it is currently forming partnerships to mirror its success in its home market.

In Auckland yesterday, Zhang was upbeat as he talked about how the power of the internet could be leveraged to create a global free trade platform.

It is a concept first floated by Ma nearly three years ago as a mechanism to break the deadlock in global trade talks at the World Trade Organisation's Doha Round.

Ma has since hawked what he terms an "eWTO" to institutions ranging from the G20 through to the World Economic Forum in Davos.

An e-hub has been set up in Hangzhou, home to Alibaba's headquarters.

Ma has led Alibaba's investment in similar e-hub trade zones in Malaysia and Thailand, which he hopes will together make up an electronic world trade platform (eWTP) to complement the WTO's organisational framework.

Advertisement
Advertise with NZME.

Neither Zhang nor Alibaba's Australasian CEO Maggie Zhou wouldn't be drawn on the Chinese giant's intentions here on this score. But they did confirm they were speaking with government officials, customs and customers, suggesting this is a live issue.

"The internet is all about transparency and free access," says Zhang. "If we can connect buyers and sellers all over the world through digital platforms together with all the business partners and suppliers, I think it will make global trade easy."

Alibaba faces growing competition. Not just from domestic Chinese competitors like JD.com but also in the international arena from Jeff Bezos' Amazon.

But Zhang is adamant a global trading platform should be open. "That is why we are talking with a lot of business partners but also governments, partners and customs to see how to make it work."

He says digital commerce is exploding in China, with 15 per cent of total consumption passing through digital platforms and bound to increase.

This is due to the growth of the millennials — "they are the generation born of the internet and living on the internet" — and the transition to "new retail", where online and offline are put together.

Advertisement
Advertise with NZME.

When it comes to Alibaba's "very important strategy of globalisation", Zhang sees potential for major NZ players like Fonterra to jump on board.

"The vision of the Alibaba Group is 'make it easy to do business anywhere'," he explains.
In Fonterra's case that might involve the NZ dairy company selling product on to Alibaba's growing platforms in South Asia, and ultimately India, as Alibaba begins building an e-commerce platform with its partner there.

Zhang points to huge opportunities in places like Malaysia, Vietnam, Indonesia, Singapore, Thailand and the Philippines. Combined, they make up a market of 550 million consumers where "generally speaking, the people are very young".

He makes the point that Alibaba is a young company. "We are only 19 years old."

Zhang has been described as a quiet, bespectacled accountant. The CEO is personally unassuming, but the scale of Alibaba's ambition is far from that.

He was in Auckland to launch an initiative between Alibaba and founding partners, including Fonterra and NZ Post, which will use blockchain technology to improve supply chain traceability, for Chinese customers who are increasingly focused on the quality and safety of what they buy.

Advertisement
Advertise with NZME.

Zhang stresses that while Alibaba has developed the specific blockchain technology, it will be an "open platform".

"When more people join we can create more value for our customers and partners' brands. We have 600 million people with us every day, so it's how we can drive this from a customer perspective.

"If the customer is happier and buys more, then more businesses will be involved."

As to the future, Zhang notes President Xi's announcement that China will open its doors more broadly.

"I think this is a future opportunity and there is a very good time window in the next few years for Chinese people to buy more imported products.

"In the next three to five years I would say we will continue to work hard with our NZ partners to help them to bring more business to China."

Advertisement
Advertise with NZME.

He underlines, however, that Alibaba believes all retail business should be digitised — it is only a matter of time.

Save

    Share this article

Latest from Business

Premium
Media InsiderUpdated

'S*** telly': Ex-TVNZ host target of internal staff emails; Iconic Sports Cafe expands to Oz

15 May 05:14 PM
Premium
Opinion

Matthew Hooton: Te Pāti Māori should leave Parliament voluntarily

15 May 05:00 PM
New Zealand

Health NZ confirms 377 roles cut, despite ongoing legal challenge

15 May 07:06 AM

Deposit scheme reduces risk, boosts trust – General Finance

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
'S*** telly': Ex-TVNZ host target of internal staff emails; Iconic Sports Cafe expands to Oz

'S*** telly': Ex-TVNZ host target of internal staff emails; Iconic Sports Cafe expands to Oz

15 May 05:14 PM

Are we in for a C-bomb sequel at the Voyager Media Awards?; The Spinoff editor steps down.

Premium
Matthew Hooton: Te Pāti Māori should leave Parliament voluntarily

Matthew Hooton: Te Pāti Māori should leave Parliament voluntarily

15 May 05:00 PM
Health NZ confirms 377 roles cut, despite ongoing legal challenge

Health NZ confirms 377 roles cut, despite ongoing legal challenge

15 May 07:06 AM
Premium
Market close: NZ sharemarket up as Sanford rides the wave

Market close: NZ sharemarket up as Sanford rides the wave

15 May 06:10 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP