'Green' reaps success beating recession blues

BANGALORE, INDIA: In an environment, where global warming has sent a chill down the spines of everybody, green technologies are among the very few that are reaping success braving the wind of slowdown.

Trends show that commerce, especially e-commerce, for alternative sustainable 'Green' products has increased dramatically over the past few years.

Clean Edge, an alternative energy research group, reports that the global market for alternative energies (fuel cells, bio-fuels, wind power and solar) expanded from $76 billion in 2007 to $116 billion in 2008, and will grow to $325 billion within a decade.

Arthur Chang, vice president, global sales, Alibaba, says searches for alternative energy resources such as solar and wind, electric cars, bio-diesel and organic products have increased steadily on Alibaba.com over the past two years. Excerpts from an exclusive interview:

CIOL: What calls for this increased demand for green technologies?

Arthur Chang: The demand for green products is being driven by growing mainstream environmental awareness, especially in developed countries, as well as large-scale government initiatives towards clean energy. 

Green technology is becoming more accessible to businesses of all sizes as costs are declining, and favorable government legislation and tax subsidies make it more sustainable. High oil prices are also having a significant impact on green trade as they intensify the global attention on the need for alternative energy.

When oil prices peaked at a record $147 per barrel in the third quarter of 2008, we noticed that searches for green goods, especially solar energy products, jumped by around 70 per cent compared to the same period in 2007, when oil prices were just $77 per barrel.

CIOL: How did this help Alibaba's business to grow?

AC: All the factors mentioned above have led to the exponential growth of the green market worldwide. This is creating new opportunities for entrepreneurs and SMEs in India and around world who are realizing that green is good business.

These trends are also reflected on Alibaba.com’s global trade marketplace. Alibaba.com can help green suppliers market their products online and connect with millions of buyers from more than 240 countries and regions. We believe that e-commerce is clearly going to be the platform through which a significant amount of green business is conducted in future and we want to be at the forefront of this movement.

CIOL: Which are the low-carbon technologies that corporates and nations are looking up to in the recent times?

AC: According to popular searches on Alibaba.com, solar-powered energy and organic products are the fastest growing green sectors on our e-marketplace, increasing 71 per cent and 68 per cent year-on-year respectively, in the first quarter of 2009.

This trend is happening at the country level, as governments move towards clean energy, as well as individual level, as consumers are lured to the 'feel good' and cost-saving benefits of solar energy.

CIOL: From where does the highest demand for green products and services come?

AC: Demand for green products is strong in the US, Europe, Middle East, and Asia. According to U.S. President Barack Obama's stimulus bill, 10 per cent of the funding will be allocated to environmental projects. In his inauguration speech, Obama pledged that America “will harness the sun and the winds and the soil to fuel our cars and run our factories”, which has set the tone for the West, while China is committed to generate 16 per cent of its energy from renewable sources by 2020.

CIOL: How much does India contribute to your business? Are you looking for any tie-ups in India?

AC: India is both a large buyer and supplier of green products, especially organic products and solar energy. India is Alibaba.com’s second largest international market after the U.S. 

We have around 900,000 local members in India, accounting for 11 per cent of the eight million registered users on our international marketplace. In the fourth quarter of 2008, our Indian membership base grew 19 per cent quarter-on-quarter, compared to 14 per cent for our international marketplace as a whole, making it one of our fastest growing markets. 

Despite the tough economic climate, more and more Indian entrepreneurs and small businesses are turning to e-commerce to cut costs and gain access to new customers, especially with new restrictions on expenses and travel budgets. 

In April 2008, we announced a strategic partnership with Infomedia 18, India's largest yellow pages and special interest publishing company.  Alibaba.com and Infomedia partnership combines the power of traditional print publishing with online media and e-commerce, providing Indian SMEs with a one-stop solution for global and domestic trade.