It seems that the Alibaba Group is not only a major concern for competitors in the retail sector but in the banking sector as well. The president of China UnionPay recently sent a letter to employees, which is now widely publicized in China.
Despite slowing growth and challenges, China – with a population of nearly 1.4 billion – will have a booming technology market in 2015. Nearly 500 million smartphones will be sold in China next year, three times the number sold in the U.S. and one third of global sales, says IDC.
Alibaba is the dominant e-commerce company in China by far, which, along with the high margins, suggests that it's the kind of natural monopoly beloved by investors. Alibaba itself attributes this to the so-called network effect.
Alibaba is about to make history with the first genuine mega-IPO of a Chinese entrepreneur-founded company in the United States. The numbers are historic as well – an anticipated market capitalization of some $200 billion.