Alibaba.com U.S. B2B SMB Survey Finds Rapid Digitization Among B2B Businesses, Especially Manufacturers
October 20 2020 - 8:30AM
Business Wire
Alibaba.com’s second survey of B2B companies
find an accelerating pivot to digital
With U.S. manufacturers digitizing at twice the
rate of other businesses, Alibaba.com unveils Digitization Sprint
for U.S. SMB Manufacturers
Today, Alibaba.com, the B2B business unit of Alibaba Group
(NYSE: BABA), announced the results of its Alibaba.com U.S. B2B
Small and Medium Business (SMB) Survey and launched a new
Digitization Sprint for U.S. SMB manufacturers – a traditionally
analog segment of SMBs that has been digitizing at twice the rate
of other industries during the pandemic – to support manufacturers
as they accelerate their digitization.
Following its inaugural survey, which was disseminated in
January 2020, Alibaba.com conducted a second survey of 5,015 U.S.
B2B SMBs with the following key findings:
- SMBs accelerated their pivot to digital: 93% of B2B
companies are now conducting some portion of their business online,
up from 90% in December, and 43% are utilizing ecommerce, an 8%
increase over the same time period.
- SMBs are finding opportunities internationally: even
with supply chain disruptions during the pandemic, 63% of B2B
companies report conducting some amount of cross border B2B trade,
up from 59% in December.
- SMB manufacturers surpassed other industries in
digitization: amid the pandemic, manufacturers’ online B2B
trade increased 8% – twice the rate of the overall 4% increase in
all industries for the same period and tied with retail as the
industries with the most digital growth. In December, U.S.
manufacturers’ online B2B trade volume lagged all other industries
except construction but have now passed multiple industries in
their pivot to digital.
“We were happy to see the increasing digitization of US B2B
companies and that many are increasing trade despite the pandemic,
showing the resilience and grit of American business owners and
entrepreneurs,” said John Caplan, President of North America and
Europe of Alibaba.com. “Our research finds that digitization is no
longer a nice-to-have, but a must-have for companies in every
industry to bridge from surviving to thriving in the next era of
business.”
Enter Alibaba.com’s Digitization Sprint for U.S.
Manufacturers
According to IBISWorld, there are 565,537 manufacturing
businesses in the U.S. According to SCORE, the leading organization
focused on mentoring U.S. small businesses, 98.6% of American
manufacturing companies are small businesses, and three-quarters
(75.3%) of those businesses have fewer than 20 employees.
U.S. manufacturers are well known for their technologically
advanced production capabilities, but until recently, they have
been slower than other industries to adopt online sourcing and
selling tools according to Alibaba.com’s survey. With manufacturers
now rapidly turning to digital channels, Alibaba.com is launching
its Digitization Sprint for U.S. Manufacturers. With the tagline
“Let’s Get Digital,” the program is designed to accelerate the
digitization of these businesses’ online marketing, selling and
sourcing and ensure their long-term success. The program is being
offered to qualified manufacturers at no cost. The Alibaba.com team
is bringing together experts and their ecosystem of collaborators,
including the Brooklyn Chamber of Commerce, Brooklyn Navy Yard and
manufacturing ecommerce expert Curt Anderson, to give manufacturers
a four-week masterclass in getting digital and going global.
“We were delighted to see in our research that manufacturing
businesses are catching on and looking for ways to ride new waves
of digital opportunity,” said Caplan. “U.S. manufacturers have huge
potential to grow their online business and emerge from this
pandemic better positioned for the future. Our first-ever
Digitization Sprint will give manufacturers the curriculum,
coaching, and community they need to accelerate their digital
skills and access the $23.9 trillion global B2B ecommerce
opportunity.”
Through the program, select manufacturing companies will gain
access to:
- Curriculum from Alibaba.com’s team, industry leaders and
partners on topics ranging from understanding the fundamentals of
ecommerce like marketplace structure and pricing dynamics to
learning tangible skills like leveraging digital advertising to
generate leads, taking quality photos for product listings and
digital storefronts and even leveraging social media to build their
brand and reach new customers.
- Coaching on succeeding in the digital economy during
weekly modules and during tailored sessions from partners and
experts in ecommerce for manufacturers like the Brooklyn Chamber of
Commerce, Brooklyn Navy Yard and ecommerce consultant, Curt
Anderson.
- Community through a private LinkedIn group and
roundtable discussions with experts and peers for ongoing education
and shared experience.
The Alibaba.com Digitization Sprint for U.S. Manufacturers
builds on the recent Alibaba.com U.S. Online Trade Shows, which
have featured U.S. manufacturers and private label producers in
specific industries exhibiting their products and capabilities
virtually to thousands of business buyers. The next show focused on
Beauty and Personal Care kicks off today at 1pm ET and will feature
all private label U.S. manufacturers.
What Alibaba.com Digitization Sprint Partners are Saying:
- Randy Peers, President & CEO of the Brooklyn Chamber of
Commerce: "Small and Medium sized businesses throughout Brooklyn
have reinvented themselves during this pandemic, upending their
traditional business models through the adoption and integration of
technology. These businesses have demonstrated creativity and
resiliency, and the changes they have adopted will position them
well for a post-COVID economy."
- Johanna Greenbaum, Chief Development Officer at the Brooklyn
Navy Yard: “We have some of the country's most creative
manufacturers successfully launching innovative products from the
Navy Yard. But, success in manufacturing doesn’t always mean
success in digital marketing and sales – the Digitization Sprint
curriculum is exactly what many of our companies need for
growth.”
- Curt Anderson, ecommerce for manufacturing expert and founder
of B2Btail.com: “Amid all the disruption of 2020, manufacturers
increasingly see the power of ecommerce as a channel for reaching
new markets and growing their company. The Digitization Sprint will
give industrial entrepreneurs a step-by-step curriculum for making
ecommerce work hard for their business.”
The inaugural Alibaba.com Digitization Sprint for U.S.
Manufacturers will kick off in mid-November with limited spots
available. Interested leaders at manufacturing companies with fewer
than 500 employees can apply for their companies to join the
initiative at alibaba.com/digitalsprint.
For more information on the program, Alibaba.com is hosting a
virtual fireside chat on “Manufacturers of the Future: The Digital
Opportunity” today at 12pm ET live on LinkedIn, YouTube and
Facebook.
Additional Highlights from the Alibaba.com U.S. B2B SMB
Survey
SMBs are Optimistic in Their Business and Recovery
- SMBs are optimistic about their business with 85% saying they
are confident about the future of their business.
- The majority of SMBs (62%) managed through the pandemic,
maintaining or increasing their business when compared to 2019
levels.
Even More U.S. B2B SMBs Digitized During the Pandemic and Are
Hiring to Support their Online Growth
- 56% hired and retained new staff to support their ecommerce
operations since the start of the pandemic, and 79% plan to hire
employees over the next year to support their increased online
business.
- 42% of respondents saw increases in online B2B transactions in
the past six months with more than three-quarters (75%) finding
increased demand for ecommerce marketplaces such as
Alibaba.com.
- Online B2B companies are far more confident than offline: 86%
of those doing business online expressing optimism in the future of
their business compared with 68% of those who are not yet doing
business online.
Digital Acceleration is Driving Global Business
- Cross border business is increasing in importance for B2B
companies, making up an average of 25% of their business – an
increase from 17% in December.
- Respondents said key benefits of ecommerce include helping them
access international markets (24%) and built-in translation
services that help communicate with trading partners in different
languages (16%).
SMB Manufacturers are Confident and Accelerating to Catch Up
Digitally
- Manufacturers over-indexed in investments in ecommerce during
COVID-19: more than two-thirds (68%) of manufacturing businesses
hired new staff to support online trade compared with 56%
overall.
The Alibaba.com U.S. Small and Medium
Business (SMB) Survey: Research Methodology
Alibaba.com commissioned leading global research firm, Ipsos, to
conduct the second Alibaba.com U.S. B2B Small and Medium Business
(SMB) Survey on behalf of Alibaba.com as a follow up to the
December 2019 survey. The sample of 5,015 was collected using a
double opt in online panel sample and conducted anonymously from
September 4 - 20, 2020. The survey targeted decision makers at U.S.
companies that buy or sell physical goods and materials with other
businesses. The study has an overall margin of error of ±1.39% at
the 95% confidence level.
Additional data, analysis and insights from the second
Alibaba.com U.S. SMB B2B Survey will be shared in future B2B Today
content and events.
About Alibaba.com
The first business unit of Alibaba Group, Alibaba.com is a
leading platform for global B2B e-commerce that aims to make it
easy to do business anywhere. Launched in 1999, Alibaba.com is
engaged in services covering all aspects of commerce, including
providing businesses with tools that help reach a global audience
for their products and helping buyers discover products, find
suppliers, and place orders online fast and efficiently. It serves
millions of buyers and suppliers from over 200 countries and
regions around the world.
About Alibaba Group
Alibaba Group's mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba, and that it will be a company that lasts at least 102
years.
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Brion Tingler +1 917 528 1992 brion.tingler@alibaba-inc.com
Alibaba.com Agency M Booth Alibaba@mbooth.com
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