International Trade Operations: Market Analysis and Strategy Report

This report provides a comprehensive analysis of international trade operations, with a specific focus on the Chinese market. It begins with a market analysis, evaluating the current valuation of Alipay and its impact on the financial landscape. The report then delves into the Chinese export market, discussing economic factors and the role of industrial policies. It explores the market share of China, highlighting the rise of mobile payments and the fin-tech industry. Consumer preferences within the Chinese fin-tech sector are examined, emphasizing data sharing and the influence of companies like Alipay. The report also addresses the demand for products, particularly within the context of the internet era and the growth of financial technology. Finally, it outlines trade operation strategies, including payment solutions for tourists and partnerships with local companies, and discusses firm strategies centered on the mainland Chinese market and expansion in e-commerce.

Running Head: INTERNATIONAL TRADE OPERATIONS
International trade operations
Student’s Name
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Author’s Note

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Table of Contents
1. Market Analysis...........................................................................................................................3
2. Evaluate Chinese export market..................................................................................................4
3. Market share of china..................................................................................................................4
4. Consumer preferences.................................................................................................................5
5. Demand for product.....................................................................................................................5
6. Trade operation strategy..............................................................................................................5
7. Firm strategy................................................................................................................................6
Reference List..................................................................................................................................7

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1. Market Analysis
The current market valuation of Alipay, whose parent company is Alibaba is $1550
billion. The company trumps market capitalizations of the frontline financial corporation around
the globe like Goldman Sachs or Morgan Stanley to the Canadian Royal Bank or Banco
Santander.
Graph1: Financial ranks of Ant (the app developing agency of Alibaba)
(Source: Li et al. 2019)
As China is moving towards a cashless economy, many of the global recipients perceive
Alipay essentially as a company for mobile payments. However, the organisaion, standing on the
current date encompasses more than 110 million users of Alipay app across 15 different
countries. More than 40% of the Chinese people use all the 5 key products offered by the
company, namely payment gateways, credit score checking facilities, insurance purchase as well
as invest of assets in the market funds of the company (Fu et al. 2019). Tech services have the

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biggest market opportunity in China. It is anticipated that within 5 years tech service offerings in
China will make up about 65% of the revenue generated by the company, compared to only 34%,
as it had been in 2017.
2. Evaluate Chinese export market
In the year 2016, China experienced an economic deceleration of 6.7%. Although, there
is a short term cyclical upturn that China might experience, most of the economists are
concerned about the medium term prospect of the economic growth of China. However, in order
to maintain stability in the EXIM market of China, the company needs to maintain 6.5% annual
growth of the country. However, little tangle advancement has been achieved in this context.
China is still depending up on the industrial policy tools like subsidies, restrictions over market
access, pressure to transfer technology as well as deliver support to the local competitors in order
to boost the economy of the country, calling in to question the capability of the foreign
companies to operate on an even playing platform in the Chinese market.
3. Market share of china
The Chinese customers are displaying increasing use of their mobile phones in order to
purchase good as well as services. As an impact, China has leapfrogged from cash payments to
the mobile payments, bypassing the system of cards payment. However, mobile payments are
only one of the seven key markets in the booming fin-tech industry of the country. Other areas of
fin-tech domain of the Chinese Industrial share includes online lending, online insurance, online
brokerage, management of personal finance as well as online insurance. Behind, the miraculous
rise of the unique fin-tech based technology ecosystem of the country, there lays the contribution

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of a tech-savvy population of the Chinese community, lack of development of the banking
industry as well as an initially relaxed environment of industrial regulations.
4. Consumer preferences
The consumers of the Chinese fin-tech industry are open towards sharing of data,
especially the people of the 1980s and 1990s who are the primary users of fin-tech in China.
There are millions of customers who are using the Alipay by Alibaba for the third party mobile
payment making. With the extensive ecosystem as well as the extensive ecosystem of the
country, companies like Alipay are easily penetrating the daily lives of the customers. Generally,
companies like Alipay have large volumes of consumer data which is used by them in order to
understand the existing consumer behavior. This will help Alipay to offer more personalized as
well as innovative services and products to the customers.
5. Demand for product
The 21st century in China can be considered as the era of the internet. In this time period, the
financial tech sector of China has seen a massive growth spurt. The primary reason behind this is
the large number of Chinese netizens. Again, the small and the micro enterprises are receiving
less than 20% loan from the finance corporations which paves the way for development of high
end financial technology (Lu 2018). The lack of relevant and requisite credit records is another
reason for which most people availing the service of the Chinese fin-tech companies like Alipay.
6. Trade operation strategy
The major operational strategies of the company are the following:
 Meeting the payment requirements of the outbound tourists in China

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 Development partnership with the local companies to develop local versions of the app
 Strong emphasis on South East Asia
 Expanding mainly in the e-commerce payment system and investing in the operations of
the digital wallet companies.
7. Firm strategy
The basis of the major success attained by the company and the wide expansionist policy
that have been implemented by them is the fact that they have mainly emphasized on the
mainland Chinese market by means of which the customers of the Chinese mainland banks could
link their accounts with Alipay wallets (Yang and Tan 2018). Recently, the company has also
facilitated the payment in Hong Kong Dollars with the merchants like Watsons as well as
Fortresses.

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Reference List
Li, J.U.N., Wang, J., Wang, S. and Zhou, Y., 2019. Mobile Payment with Alipay: An application
of extended technology acceptance model. IEEE Access.
Lu, L., 2018. Decoding Alipay: mobile payments, a cashless society and regulatory challenges.
Butterworths Journal of International Banking and Financial Law, pp.40-43.
Yang, A. and Tan, C.C., 2018. A Stimulus-organism-response Model To Structure Alipay
Consumer Perceptions In China. In ASEAN/Asian Academic Society International Conference
Proceeding Series (pp. 665-672).
Fu, J., Zhou, Y., Wu, S. and Wang, X., 2019, April. Let's Chat in Alipay: Understanding Social
Function Usage in Task-oriented Apps. In Extended Abstracts of the 2019 CHI Conference on
Human Factors in Computing Systems (p. LBW0276). ACM.