MSME Day 2024: Alibaba.com's Commitment to Advancing AI Tools for Small Businesses

On June 27, this year's MSME DAY, Alibaba.com honored businesses in their pursuit of success and global growth. The company said it is committed to supporting MSMEs, and it has launched artificial intelligence (AI) tools that have been adopted by around 30,000 businesses.

Alibaba.com's President Kuo Zhang spoke at a panel discussion on the topic of global trade during the World Trade Organization's (WTO) bi-annual Global Review of Aid for Trade. Zhang was also among four MSMEs from Ethiopia, Vietnam, Italy, and India who attended a session held by the United Nations International Trade Centre (ITC) to celebrate MSME Day.

According to Zhang, Alibaba.com's AI tools are used by more than ten developing countries, which emphasizes the importance of ensuring no MSMEs in underdeveloped countries are left behind in the era of AI.

"As a member of the private sector, we are honored to have worked alongside international agencies such as ITC and supported MSMEs worldwide over the past 25 years," said Zhang. "As we promote wider adoption of our AI tools amongst MSMEs, we also hope to expand our global supplier base to cover 100,000 suppliers in the next three years. In a nutshell, we are building a global supply chain by and for MSMEs leveraging AI."

MSME Day celebrates this year the seventh anniversary of the United Nations' designation of MSMEs as essential to achieving sustainable development goals and increasing global economic growth.

Empowering MSMEs with AI Tools

During May 2024, Alibaba.com survey 500 businesses, ranging in size from one employee to 250 employees, across the globe. The survey showed that MSME users regularly seek innovative solutions and services such as AI. About 25%-30% of MSMEs use AI every day, according to the survey Alibaba.com's AI tools are used by approximately 30,000 MSMEs worldwide. These tools enabled the companies to increase their product exposure by 37%, creating opportunities for new business deals and growth. According to Alibaba.com's survey, 70% of the optimization suggestions generated by its AI tools have been accepted by MSMEs using Alibaba's AI tools already.

"Using AI has helped put my Alibaba.com store on autopilot and saved us a lot of time since it's just me and one employee managing our business," said Sieu To, Deputy Managing Director of Hanh Sanh Co., Ltd, a Vietnam-based electric fan company. "For many business owners who are new to e-commerce, I think AI tools will draw them closer to the platform."

Global Supply Chain Clusters

MSMEs can diversify their product sources with Alibaba.com by connecting with suppliers who specialize in specific industries and products. These global digital supply chain clusters include:

• In Northeast Asia, Buyers can connect with Korean skincare manufacturers and Japanese camera, photo, and accessory manufacturers.
• In Southeast Asia, Vietnam is a major supplier of seasonings, condiments, and home and outdoor furniture, as well as loose gemstones and horse racing gear from India and Pakistan.
• In West Asia and Europe, Turkey provides carpets, men's clothing, and construction machinery suppliers. Germany is a great source for industrial machinery, and Italy is a great source for textile machines, and women's apparel.

Connecting Suppliers in Developing Countries

In a bid to expand its supplier base, Alibaba.com is stepping up its efforts to onboard suppliers from developing countries. Of note, Alibaba.com is assisting 100 African MSMEs to establish a presence on its platform to sell globally.

Furthermore, As part of Alibaba.com's 500 events and seminars for global suppliers scheduled for this fiscal year (April 2024 to March 2025), about 300 will be held in developing countries.

"Starting with brick-and-mortar and transitioning to e-commerce has been a strategic journey for my business," said Dagmawit Abebe, owner of Ethiopian coffee brand Kedemt Coffee. "Leveraging e-commerce platforms like Alibaba.com has been crucial in overcoming local market challenges and expanding our reach."

With more than 48 million buyers and more than 200,000 suppliers on its platform worldwide, Alibaba.com continues to connect global MSMEs. Through innovation and new solutions that simplify global sourcing and selling, Alibaba.com will continue to put MSMEs at the forefront.

About Alibaba.com

Alibaba.com is the leading platform for global wholesale trade, and was Launched in 1999. By giving suppliers the tools necessary to reach a global audience for their products, and by helping buyers find products and suppliers quickly and efficiently, Alibaba.com makes it easy to do business anywhere.