Alibaba.com Ramps Up Efforts to Help B2B SMEs Embrace Digital Commerce

“Project Sprout Up” helps Singapore exporters pursue opportunities in post-pandemic landscape.

With the darkening economic outlook on Singapore due to uncertainty related to the COVID-19 pandemic, the country’s small and medium enterprises (SMEs) are facing unprecedented challenges – from faltering demand from traditional sources to supply chain disruptions. This has led to falling business optimism, but business-to-business (B2B) platform Alibaba.com is ramping up efforts to not only support Singapore SMEs through this tough time, but also open up promising new markets for growth.

The platform has launched Project Sprout Up, an array of new initiatives aimed at enabling Singapore SMEs to become more comfortable with B2B e-commerce, and encourage them to explore opportunities outside of Singapore.

“The pandemic has had a disproportionate impact on SMEs worldwide given their reliance on a small number of markets and customers. We have seen more SMEs in this region moving online to pursue global opportunities when offline demand is getting harder to secure,” said Zhang Kuo, general manager of Alibaba.com, citing a 65% year-on-year increase in paying international buyers on the platform as of March 2020. “Just as how consumers turned to e-commerce to replace their usual offline shopping, international buyers are looking online too.”

Alibaba.com also shared that around half of the 20 million active buyers on the platform are 34 years or younger, and these digital natives have a clear preference for digital channels for not only their shopping, communication and entertainment needs but also for business.

Alibaba.com’s Singapore SME Support

Despite awareness of the benefits linked to expanding online B2B trade, many Singapore SMEs remain sitting on the sidelines, potentially due to perceived cost and knowledge constraints. This led Alibaba.com to launch Project Sprout Up, part of the broader Spring Thunder initiative by Alibaba Group, to help exporters in markets outside China navigate the COVID-19 crisis through a series of support measures.

Alibaba.com said Singapore is one of the first countries outside of China to receive such a support package from Alibaba.com, recognising the strong potential of Singapore SMEs to bolster their B2B operations. “Especially in the wake of COVID-19, Alibaba.com can help surface pockets of demand and facilitate cross-border payments and movement of goods easily for SMEs at a fraction of the usual investment of time and resources required,” said Zhang.

Under the support program, SMEs here can apply through Innovative Hub, Alibaba.com’s local channel partner, to receive a one-time 70% subsidy for a solution package, enabled via a grant by Enterprise Singapore. Alibaba.com is also providing SMEs with more guidance and support in setting up their online presence and expanding their online operations. Among other offerings, newly joined suppliers can be enrolled in a 90-day onboarding process, which aims to boost traffic and generate additional business opportunities for them.

Business owners and executives also have access to special webinars and consultancy services that address topics ranging from the basics of an online business, online buyer behaviour, business negotiations, customer support and marketing, to what the “new normal” looks like in global trade.

“With digital commerce playing an increasingly important role in business recovery around the world post-pandemic, we believe this project will play a part in helping B2B SMEs in Singapore navigate the way forward,” said Zhang.

Digital Commerce a Business Imperative

Singapore SMEs are relatively well placed to take advantage of B2B platforms due to their strong global brand appeal and the country’s strategic importance as a hub for ASEAN and international trade. Furthermore, Singapore SMEs can leverage the country’s advanced logistics and digital systems.

“Singapore has deep roots in the import-export business, and the trade infrastructure and know-how is already something B2B SMEs here are making use of. The Made-in-Singapore brand itself is also generally seen as a mark of assurance, quality and reliability in the global market,” Zhang noted.

But with regional counterparts closing the gap due to the rise of digital marketing, Zhang reckoned it is imperative for Singapore SMEs to press their advantage. They must establish strong B2B platform presence, where they can offer value-added and unique products that give their brands a high-quality differentiator. Likewise, they can leverage on digital tools such as platform analytics, storefront translation and real-time chat translation offered by Alibaba.com to broaden their appeal beyond the traditional export destinations.

“A digitalised business means SMEs can go after the pockets of demand around the world a lot more efficiently. Especially if they work with an already established platform like Alibaba.com, they can focus better on the business and leave various administrative matters such as language barriers, distance and report generation to us,” said Zhang.