Copyright

 ©  2017  Alibaba  Group.  All  rights  reserved.  

eCommerce  Ecosystem:    
The  China  Story  
Brian  Wong  
Vice  President,  Alibaba  Group  
AGENDA  

1   e-­‐Commerce  in  China  

2   Inclusive  Development  

3   Malaysia  and  Industry  4.0  

AGENDA  

1   e-­‐Commerce  in  China  

2   Inclusive  Development  

3   Malaysia  and  Industry  4.0  

 e-­‐Commerce  in  China  

A  historic  perspecIve
 e-­‐Commerce  in  China`  

China  in  1999…

•  Less  than  10mm  internet  users  
•  No  retail  ecommerce  

•  No  online  payment  services  

•  No  private    
logis>cs  companies  
Hangzhou,  China  
China and U.S. E-commerce Comparison
E-­‐commerce  Market  (2009A  -­‐2015E)  
(US$ Bn)

01 5 E )         $488    
2009A  –  2  52.4%  
 ( :
CAGR %  vs  China $395    
. S. :   13.7 $339    
U $298     $297    
$259    
$225  $207  
   
$176     $195    
$157    
$121    
$68    
$39    

2009A   2010A   2011A   2012A   2013E   2014E   2015E  

US   China  
e-­‐Commerce  in  China  
China’s digital economy is an amazing success story
 Inclusive  Development  

E-­‐Commerce  &  Inclusive  Development  in  China

In  2016,  
•  Chinese  Internet  users  reached  731  million,  or  53.2%  of
 China’s  populaIon;  467million  consumers  shop  online  

•  Chinese  mobile  users  reached  695  million,  or  95.1%  of  total
 internet  users  in  China;  441  million  consumers  shop  via
 mobile;  mobile  online  payment  users  rose  to  469  million  

•  E-­‐commerce  sales  has  reached  over  $800  BN,  accounted  for

 15.5%  of  China  retail  sales,  with  YOY  growth  of  26.2%  
 E-­‐Commerce  in  China  

Our  Mission  &  Vision  

Founded  in  Hangzhou  in  1999  

Our Mission Our Vision

To  make  it  easy  to  do  business  anywhere   To  build  the  future  infrastructure  of  commerce  

To  be  a  company  that  lasts  at  least  102  years  

 Taobao  and  e-­‐Commerce  in  China  

We  are  The  World’s  Largest  Retail  Placorm  

10+  Million   466  Million   529  Million  

Annual  AcIve  Sellers       Annual  AcIve  Buyers     Mobile  MAUs    

US$  547  Billion   56%   80%  

Annual  GMV   YoY  Revenue  Growth     Mobile  GMV  Share    

Source:  Alibaba  Group  FY  2018  Q1  Financial  Report    

 e-­‐Commerce  in  China  

The  Alibaba  Story  

Taobao  City    
Single’s  Day  Created   Tmall  Global   New  Retail  
Alibaba.com
Taobao  Village   Rural  Taobao   Hema  
 Created   Alipay   Cainiao    
1999   2004   2009   2013   2014   2017  

2003   2012   2015  

Taobao     Tmall     Alihealth  
Ali-­‐Entertainment  
Ebay:  80%
 market  share  
e-­‐Commerce  in  China  

SARS  Outbreak,  2003  

11.11  Shopping  Fes.val  :  GMV

168  

120  
91.2  

57.1  
35  
19.1  
0.05   0.94   0.36  
09   10   11   12   13   14   15   16   17  
Note:      
(1)  All  11.11  GMV  sehled  through  Alipay.  
(2)  The  above  11.11  GMV  are  unaudited  and  are  subject  to  final  audiIng  following  conclusion  of  the  event.      
14  
 Alibaba  Ecosystem  
B2C  &  C2C  Marketplace

MarkeIng  Placorm Social  Network

LocaIon  based

Mobile  Browser
Businesses Consumers
B2B  Marketplace

Healthcare

CommunicaIon Entertainment

Financial  Services

LogisIcs

Big  Data
1   e-­‐Commerce  in  China  

2   Inclusive  Development  

3   Malaysia  and  Industry  4.0  

 Taobao  and  e-­‐Commerce  in  China  

Inclusive  Development  

What  if  we  can  make

 globalizaIon  work  by  making  it
 inclusive  for  anyone  with  a
 mobile  phone?  Trade  is  sIll  the
 soluIon  to  solve  job  creaIon  in
 the  next  20  years.  
 Inclusive  Development  

E-­‐Commerce  brings  benefit  to  many  aspects  of  society

•  InnovaIon  and  entrepreneurship  opportuniIes  for  young  people  
•  Reduce  cost  for  innovaIon  and  entrepreneurship  
Promote  SMEs’     •  Provide  new  business  service  system  
development   •  Speed  up  SME’s  business  development  
•  Encourage  micro-­‐innovaIons    

•  Rural  online  consumpIon  and  selling  

Promote  rural   •  Rural  Start-­‐ups  
development   •  Rural  Job  opportuniIes  creaIon  

•  Extend  new  job  opportuniIes  (young  people,  women,  disabled,  rural）  

Create  more  
•  Upgrade  employment  quality  (flexible  &  diversified）  
job  opportuni>es  
Inclusive  Development  

Jobs  for  the  Disabled  

Inclusive  Development  

Taobao  
Taobao  VVillages  
illages  
Inclusive  Development  

Rural  Taobao  
1 About  Alibaba  

2 Inclusive  Development  

3 Malaysia  and  Industry  4.0  

 Malaysia and Industry 4.0

E-­‐Commerce  Market  in  Malaysia

Impediments  to  Malaysian  eCommerce  Growth:  
24.5mn  (79%)   5%  
Legal  and  regulatory
1  barriers  
Legal  framework  needed  to  facilitate  growth  

Internet  users   %  Share  of  ecommerce 2 Technical  barriers   72%  of  SMEs  do  not  have  a  website  
 in  retail  

Lack  of  internet

3  security  
Perceived  risk  for  SMEs  operaIng  on  the  Internet  

730mn  (53%)   15.5%  

Impact  of  increasing  penetra>on  across  Southeast  Asia  

Internet  users   %  Share  of  ecommerce

 in  retail  

Source:  MCMC  Internet  Users  Survey  2017,  University  of  Modern  Science  Study  of  Barriers  to  Ecommerce  AdopIon  in  Malaysia  2016,  Go  Digital  Workship  SME  Corp  &  Maxis    
Malaysia and Industry 4.0

10+  Million   488  Million   549  Million  

Annual  AcIve  Sellers       Annual  AcIve  Buyers     Mobile  MAUs    

US$  547  Billion   61%   80%  

Annual  GMV   YoY  Revenue  Growth     Mobile  GMV  Share    
 Malaysia  and  Industry  4.0  

Alibaba  Group  enabling  Malaysia

Wholesale  Placorm     Lazada  Business  for  Malaysia     Alitrip  Chinese  Tourist  Profile  

Lazada  is  the  leading  online  retail  marketplace  for Born  in  1960s     Others  
 Malaysian  businesses      

50,000   Millions     19     Born  in  1970s   Born  in  1990s  

Target  for  sellers    of  products   categories    
34%   66%  

Top  Product  Categories  on  Lazada  Malaysia     Born  in  1980s  

Retail  Placorms     Over  50%  
Mobile  Phones     TV,  Audio.  Gaming     January  –  December  2016  
&  Tablets     &  Wearables    

Computers     Home    
&  Laptops     Appliances    
 The  UK  and  the  future  of  commerce  

eWTP:  Electronic  World  Trade

 Plaborm  
ConnecIng  SMEs  and  consumers
 globally  –  empowering  both  

Leveraging  technology  to  create

 worldwide,  borderless  free  trade  

AcceleraIng  globalizaIon  and

 promoIng  growth  

Promo>ng  Inclusive
 Trade  
CreaIng  prosperity  for  all  
 Malaysia  and  Industry  4.0  

The  Malaysian  eWTP  Pilot  Project  

Physical   Virtual  

E-­‐fulfillment  hub   Control  Tower  Services  

DFTZ  E-­‐Services Cloud  &  Data
 Placorm    HosIng  

Regional  Control  and  OperaIons  for  SEA  OperaIons  e-­‐Marketplace,  “One  Touch”  and  AliPay  
Incen>ves  and  Assistance  
•  Regional  Business  Development    
1.  0%  Corporate  Tax  
•  Research  &  Development  for  e-­‐WTP  
2.  One-­‐Touch  Services  
3.  Onboarding  &  Talent  Management    
•  IT  Management  and  OperaIons  
•  Data  analyIcs  and  shared  services  operaIon  
 Malaysia  and  Industry  4.0  

Industry  4.0  &  Inclusive  Educa>on

Governments  
Promote  Economic  TransformaIon  

Entrepreneurs  
Enable  Job  Creators  
A  new  empowerment  model
Merchants  
 for  governments, Extend  PracIcal  knowledge  
 entrepreneurs,  merchants,
Training  Organiza>ons  
 NGOs,  and  students  in Train  the  Trainers  
 Malaysia  
Prac>>oners  
On-­‐the-­‐job  Learning  

Universi>es  
Foster  Future  Talents  
 Malaysia  and  Industry  4.0  

Alibaba’s  Promise  to  Malaysia

•  Entrepreneur  Training  Program:  a  course  designed  to  bring
 Malaysian  SMEs  to  Hangzhou  to  develop  understanding  of  the  Digital
 Technology  era.  
•  Global  eCommerce  Talent  Program:  a  5-­‐day  training  for  local  master
 trainers  in  Hangzhou  to  foster  local  e-­‐commerce  talent  in
 universiIes.  
•  Alibaba  Global  Leadership  Academy:  a  talent  development  program
 dedicated  to  creaIng  future  leaders  of  the  new  economy  in  Malaysia
 and  around  the  world.  
•  Government  eCommerce  Immersion:  an  opportunity  to  showcase
 the  capabiliIes  and  promise  of  a  new  digital  economy  for
 Governments  through  first  hand  experiences  in  leading  ecommerce
 insItuIons.      
Today  is  difficult,    
Tomorrow  is  more  difficult,  
The  day  aeer  tomorrow  is  beau>ful  
Jack  Ma  
Thank You