In celebration of Micro-, Small, and Medium-Sized Enterprise (MSME) Day on June 27, Alibaba.com, a leading B2B e-commerce platform under Alibaba International Digital Commerce Group, has reiterated its commitment to supporting MSMEs. The platform has been enhancing its artificial intelligence (AI) tools for global suppliers, with around 30,000 businesses already utilizing these innovations.
This year marks the seventh anniversary of the United Nations’ recognition of MSME Day, celebrating the critical role of MSMEs in achieving the UN Sustainable Development Goals and their contributions to the global economy. On this significant occasion, Kuo Zhang, President of Alibaba.com, took part in a panel discussion on global trade during the World Trade Organization’s (WTO) bi-annual Global Review of Aid for Trade. Alongside MSMEs from Ethiopia, Vietnam, Italy, and India, Zhang also participated in a session hosted by the United Nations International Trade Centre (ITC) to honor MSME Day.
Zhang emphasized the importance of inclusivity for MSMEs in developing countries in the AI era, noting that roughly half of the top 20 countries using Alibaba.com’s AI tools are developing nations.
“We are proud to have collaborated with international agencies like ITC and supported MSMEs globally over the past 25 years,” Zhang stated. “As we encourage broader adoption of our AI tools among MSMEs, we aim to expand our global supplier base to 100,000 suppliers within the next three years. Essentially, we are developing a global supply chain by and for MSMEs, leveraging AI.”
Adoption of AI by MSMEs
A recent survey of MSMEs using Alibaba.com’s platform revealed that they frequently seek innovative solutions such as AI. Between 25% and 30% of the surveyed MSMEs use AI daily. Approximately 30,000 MSMEs globally are utilizing Alibaba.com’s AI tools, leading to a 37% increase in product exposure and greater opportunities for business growth. Those using these AI tools have adopted 70% of the optimization suggestions provided by the tools.
“AI has automated many aspects of my Alibaba.com store, saving us a lot of time as it’s just me and one employee managing the business,” said Sieu To, Deputy Managing Director of Hanh Sanh Co., Ltd, a Vietnam-based electric fan company. “For new e-commerce business owners, AI tools can help make the platform more accessible.”
Increasing Access to Global Suppliers for MSMEs
MSMEs on Alibaba.com can diversify their product sources by connecting with suppliers specializing in specific industries and products. Key global digital supply chain clusters include:
- Northeast Asia: Natural ingredient skin care suppliers in Korea and home furniture and camera, photo, and accessory manufacturers in Japan.
- Southeast Asia: Vietnam as a hub for seasoning and condiments, and home and outdoor furniture. India and Pakistan for loose gemstones and horse racing gear.
- West Asia and Europe: Carpets, men’s clothing, and construction and building machinery suppliers in Türkiye. Industrial machinery in Germany, and wine, textile machinery, and women’s apparel in Italy.
“As one of the first Italian businesses on Alibaba.com’s platform, I always trusted the quality of our Italian supplements products. Alibaba.com has helped us expand beyond Europe to markets such as China, Vietnam, Bangladesh, and Ghana,” said Maria Francesca Aceti, CEO of Deltha Pharma.
Boosting Supplier Support in Developing Countries
In its bid to expand its supplier base, Alibaba.com is enhancing its efforts to onboard suppliers from developing countries. The platform aims to assist 100 MSMEs across Africa in establishing an online presence to sell their products globally. Furthermore, Alibaba.com plans to host 500 events and seminars for global suppliers this fiscal year (April 2024 to March 2025), with about 300 of these events taking place in developing countries.
“Transitioning from brick-and-mortar to e-commerce has been a strategic journey for my business,” said Dagmawit Abebe, owner of Ethiopian coffee brand Kedemt Coffee. “E-commerce platforms like Alibaba.com have been vital in overcoming local market challenges and expanding our reach.”
Alibaba.com now connects more global MSMEs than ever, serving over 48 million buyers and more than 200,000 suppliers worldwide. The platform remains dedicated to prioritizing MSMEs through continuous innovation and new solutions aimed at simplifying global sourcing and selling.