Alibaba, Norwegian Cruise Line Partner on Chinese Cruise Travel (BABA, NCHL)

Alibaba (BABA), the Chinese ecommerce giant, has been making what on the surface would seem like strange bedfellows, with the latest a partnership with Norwegian Cruise Lines (NCLH).

Late last week the global cruise line operator announced a new partnership with the leading ecommerce company in China to create a customized cruise line for the local China market. Norwegian Cruise Line is betting that with Alibaba’s insights into the wants and needs of Chinese consumers it can tap into the growing middle class that likes to spend their money in part on travel and tourism. In a press release Norwegian said the Chinese market is on tap to be the second largest market for the cruise industry. The two are also collaborating on what they are calling online-to-offline experiences across Norwegian’s China-based and global fleet of ships.

Norwegian is gearing up to enter the Chinese cruise market in June with the introduction of its 3,850-passenger Norwegian Joy cruise ship geared specifically toward Chinese travelers. “Our expanded relationship is another example of how Alibaba is helping international brands to reach Chinese consumers through our robust data, marketing and technology. We look forward to further strengthening our collaboration with Norwegian in the future,” Michael Evans, president of Alibaba Group said in a press release last week. (For more, see also: Norwegian Cruise Line’s Secret to Success.)

For Alibaba this is just the latest in an effort to expand beyond the saturated ecommerce market in China and provide expert insight into Chinese consumers for all sorts of industries. In late April Alibaba announced it wants to help U.S. businesses, farmers and entrepreneurs conduct business in China and will hold its first conference in Detroit in June to do exactly that. Dubbed Gateway 17, the inaugural two-day conference begins June 20 at Detroit’s Cobo Center and will help companies explore growth opportunities and ways to reach the millions of Chinese consumers. Alibaba said in a press release the conference is expected to draw more than 1,000 businesses around the country and will include presentations by entrepreneurs including Alibaba Chairman Jack Ma. (For more, see more: Alibaba Earns at Least $1B in Sale of Momo Stake.)

Alibaba said that as the incomes of Chinese consumers rise and the middle class in China continues to grow, demand for high-quality products from the U.S. is increasing. In an open letter, Alibaba’s Chairman Jack Ma said the Chinese market presents “tremendous opportunities” and that the middle-class population in China is expected to surpass 600 million by 2022, nearly twice the size of the U.S. population. In 2016, China surpassed the U.S. to become the world’s biggest retail market with spending higher than the $4.84 trillion the U.S. saw in 2016. “By next year, China’s online spending will be greater than the rest of the world combined. At Alibaba, we want to help you take advantage of this appetite for consumption through our ecommerce marketplaces,” he wrote.