In a program on Bloomberg, “Buyology” Author Martin Lindstrom said that Alibaba Group Holding Ltd (NYSE:BABA)’s Alipay will trigger a massive change in payments, shopping and buying trends in the US market after conquering China. He thinks that the reason behind the change is the dynamics of Chinese markers. Jack Ma has already started getting big and important milestones in the US. eBay Inc (NASDAQ:EBAY)’s PayPal is currently regarded as the number one payment method which is being used by companies, freelancers, vendors and small businesses worldwide. He thinks that in the coming days, people from China will able to directly buy American products from American websites by paying through Ali Pay. This will bring a big problem for eBay and other local shopping websites.
Martin said that this is an ingoing phenomena; it has to do with psychology of the Chinese people. American products are regarded as the first generation brands and luxury products in China. If someone could get first hand product from the US directly in China, it is perceived as a big achievement. Alibaba Group Holding Ltd (NYSE:BABA) will use this point and invest heavily in making Alibaba Group Holding Ltd (NYSE:BABA) integration practical with the US websites. eBay Inc (NASDAQ:EBAY) has a lot of benefits as compared to Alibaba Group Holding Ltd (NYSE:BABA) and a much more established consumer base.
Martin said that Chinese government is teaching its people about how to develop brands. He thinks that Chinese people have no idea about brands. Alibaba Group Holding Ltd (NYSE:BABA) is the only famous brand from China, which will likely takeover the US market in the future. He said that Chinese people are not brad conscious anymore. They are buying household goods like blenders, dishwashers and utensils instead of clothes. eBay Inc (NASDAQ:EBAY)’s PayPal and website currently face no threat from Alibaba Group Holding Ltd (NYSE:BABA).