Alibaba Group

An-Ju Cheng, Karen Jones, Stephen Killingham, Frank

Warzecha, & Lexi Xu
 E - C O M M E RC E
e-Commerce (electronic commerce) is the trading and facilitating of trading in
products or services using computer networks, such as the Internet or online
social networks.
 e - C o m m e r ce

BUSINESS
CONSUMER

BUSINESS B2B B2C

CONSUMER C2B C2C

 e - C o m m e r c e Indust r y

$376,175 million
Global eCommerce market value in 2016
C o u nt r i e s w it h t h e
l a rge st B 2 C e -
c o m m e r c e m a r ket s
in 2015 a n d 2016
(in billion U.S.
dollars)
 e - C o m m e r c e In dustr y

1,749,600 , 0 0 0
Digital Buyers in 2015

51.5%
Of global Internet users

24.3%
Of global population
Digital b u yer pen etrati o n w o r l d w i d e fro m 2014 to 2019
Retail e-commerce sales worldwide from 2014 to 2020 (in billion U.S. dollars)
Global m a r ke t re a c h
of the l a rge st
retail ecommerce
s i te s
 “
FUTU RE &
TR ENDS
 F ut u re & Tre n d s

Mobile e - c o m m e r c e is
rising
U.S. mobile commerce sales last year
totaled $104.05 billion, up 38.7 percent
from $75.03 billion in 2014, according to
Internet Retailer magazine.
 F ut u re & Tre n d s

E - c o m m e r c e & H o lidays

Cyber Monday is the largest online shopping day of the year in the U.S., with $3.45 billion in sales
(2016). In China, Alibaba has turned Single’s Day (Nov.11th) into the world’s largest shopping
extravaganza, breaking the one-day e-commerce sales record with $17.8 billion this year.
 F ut u re & Tre n d s

Combining c o nt e nt and
commerce
Aka, a s ticky s ite
 F ut u re & Tre n d s

P hys i ca l a n d online wo r l ds will co nti n ue to c o n v e r g e

 “
ALIBABA GROUP
OVERVIEW
Alibaba g r o u p w a s fo u n d e d in 1999
b y 18 p e o p l e led b y J a c k Ma, a
forme r E n g l i s h te a c h e r f ro m China.
T h e c o m p a ny ' s g o a l w a s to
c h a m p i o n small bus i ne s s e s , in t he
belief that t h e internet w o u l d level
t he pl ay in g fi eld b y e na b l i ng small
e nte rpris e s to l e ve ra ge innovati on &
te c h n o l o g y to g r o w a n d c o m p e t e
m o r e eff ecti ve ly in t he d o m e s ti c
a n d g lo ba l e co n o m i e s .
 Missio n

“We provide the fundamental technology

infrastructure & marketing reach to help
merchants, brands and other businesses
that provide products, services and
digital content to leverage the power of
the internet to engage with their users
and customers. Our businesses are
comprised of core commerce, cloud
computing, digital media and
entertainment, innovation initiatives and
others. Through investee affiliates, we
also participate in the logistics and local
services sectors.”
 Vision

“We aim to build the future infrastructure of commerce.”

Meet @ Alibaba
We enable hundreds of millions of commercial & social interactions
among our users, between consumers and merchants, and
among businesses every day.

Work@Alibaba
We empower our customers with the fundamental infrastructure
for commerce and data technology, so that they can build
businesses and create value that can be shared among our
ecosystem participants.

Live@Alibaba
We strive to expand our products and services to become central
to
the everyday lives of our customers.

102 Years
For a company that was founded in 1999, lasting at least 102 years
means we will have spanned three centuries, an achievement that
few companies can claim. Our culture, business models and
systems are built to last, so that we can achieve sustainability in the
long run.
 A lib ab a

Alibaba has a simple yet aggressive strategy; partner with millions of

merchants - serving 2BN consumers
 A lib ab a

Alibaba G ro u p Off eri ng s:

Alibaba operates various

businesses and also derives
support for their ecosystem
from businesses and services of
the related/affiliated companies
shown here.

Taobao.com
⊡ Launched in May 2003
⊡ The online shopping
destination of choice for
Chinese consumers
⊡ Features hundreds of
millions of products and
services
⊡ China’s largest mobile
commerce destination by
monthly active users in 2015
Ta k i n g a cl o s er l ook at t hree
of Alibaba’s subs idi ar ies
TMALL.COM
⊡ Launched in April 2008
⊡ Provides a premium
shopping experience
⊡ Offers top-quality
branded merchandise
⊡ China’s largest 3rd party
platform for brands &
retailers by monthly active
users in 2015
ANT FINANCIAL
⊡ Financial services provider
focused on small & micro
enterpris es
⊡ Vision is to “bring small &
beautiful changes to the
world”
⊡ Dedicated to building an open
ecosystem of internet
thinking & technologies
 “
ORGANIZATIONAL
STRATEGY
Organizati o nal S t r u c t u re
 L ake s i d e Par tn ers

In July 2010, the L a ke s i d e Par t ners hi p was formalized.

The partnership has helped Alibaba better manage the company, by enabling senior managers to collaborate and
override bureaucracy and hierarchy.

The Alibaba partnership consist of 34 members which include 2 6 members of Alibaba’s management
team, 7 members of Ant Financial and 1 member of Cainiao Network.
 L ake s i d e Part ners (conti nued)
Eric Xiandong JING
Jingxian CAI Principal
Engineer President, Ant Financial
Services
Li Cheng
Chief Technology Officer, Ant Zhenfei LIU
Financial Services Chief Risk
Officer
Trudy Shan DAI
Chief Customer Officer Jane Fang JIANG
Chief People
Jack Yun MA
Officer
Executive Chairman
Jianhang JIN
Yongxin FANG
Director, Human President
JonathanPeng
Zhaoxi LU
JIANG
Resources
Vice
Senior Vice President
Luyuan FAN Chairman
President, Payment Business, Eric Xiandong
Ant Financial Services President, Ant Financial
Simon Xiaoming HU Services
President, Alibaba Cloud Xingjun NI
Computing Principal
Sabrina Yijie PENG Engineer, Ant Financial Services
General Manager, International, Lucy Lei PENG
Ant Financial Services Chief Executive Officer, Ant Financial
Services
 Str a t e g ies

L o n g Te r m S t rate g i c Goal

Serve 2,000,000,000
consumers served around the world

support 10,000,000
businesses to operate profitably.

Alibaba has embarked into three key initiatives to achieve the strategic goal:

1. Globalization
2. Rural Expansion
3. Big Data/ Cloud Computing
E x p ansi on
 “
GROWTH &
ACQUISITIONS/
INVESTMENTS
 G ro w t h O f Al ibab a Gro up
H o l d i n g L i m i ted

Global [current fiscal year (YE March 31,2016)]

All amounts in $USD.

● Total Revenue $15.7B

○ 33% YoY Growth
● Annual GMV $485B
● 423M Active Buyers
● Free Cash Flow $7.953B
● 410M Mobile MAUs
○ 63% of China Commerce Retail
Revenue (up from 30% in PY)
● BABA Stock Price $93.01 (11/27/16);
○ $68.00 (IPO on Sept. 2014)
● EPS (diluted) $2.60
○ 20% YoY Growth
● EBITDA $8.1B
○ 28% YoY Growth

BABA Global Revenue Growth

 G ro w t h O f A li baba G rou p
H o l d i n g L i m i te d
(conti n ued )

Segment [current fiscal year (YE March 31,2016)]

● Core Commerce $14.3B ($11.2B in 2015)

● China Commerce Retail (Taobao.com,
Tmall.com, Juhuasuan.com, cun.tabao.com,
Alimama.com, Tmall Global)
● China Commerce Wholesale (1688.com)
● International Commerce Retail (AliExpress,
Lazada)
● International Commerce Wholesale
(Alibaba.com)
● Cloud Computing $468M ($205M in 2015)
○ Alibaba Cloud (aliyun.com)
● Digital Media Entertainment and Others
$958M ($889M in 2015)
○ UC Web, YouKu, Alisports.com, Alibab
Music,
Tmall TV, AutoNavi, YunOS, DingTalk
 A cqui sit io n / I nv e s t m ent
S t rat e g y of A li baba

IPO Roadshow
Sept. 2014
and 2016
Annual
Repor
t
 Pr incipl es of Co n so l i d ati on

Taobao Holding Limited (Cayman Islands) Taobao
China Holding Limited (Hong Kong) Zhejiang
Tmall Technology Co., Ltd. (PRC) Taobao (China)
Software Co., Ltd. (PRC)
Ali Panini Investment Holding Limited (Hong Kong)
Alibaba Group Services Limited (Hong Kong) Alibaba
(China) Co., Ltd. (PRC)
Alibaba Group Treasury Limited (BVI)
Alibaba Group Properties Limited (Cayman Islands) Alibaba
Investment Limited (BVI)
Ali UC Investment Holding Limited (Cayman Islands) Ali
W B Investment Holding Limited (Cayman Islands) AutoNavi
Holdings Limited (Cayman Islands)
Ali YK Investment Holding Limited (Cayman Islands) Ali
CV Investment Holding Limited (Cayman Islands) Perfect
Advance Holding Limited (BVI)
Hangzhou Ali Venture Capital Co., Ltd. (PRC)
Ali CN Investment Holding Limited (BVI)
Ali K B Investment Holding Limited (Cayman Islands)
Alibaba.com Limited (Cayman Islands)
Alibaba.com Investment Holding Limited (BVI)
Alibaba.com China Limited (Hong Kong) Alibaba
(China) Technology Co., Ltd. (PRC)
Shen Zhen OneTouch Business Service Ltd. (PRC) Alibaba.com
International (Cayman) Holding Limited (Cayman Islands)
Alibaba.com International (BVI) Holding Limited (BVI) Alibaba.com
Singapore E-Commerce Private Limited (Singapore) Alimama Limited
(Cayman Islands)
Alimama Investment Holding Limited (BVI) Alimama
China Holding Limited (Hong Kong) Hangzhou
Alimama Technology Co., Ltd. (PRC)
Hangzhou Alimama Software Services Co., Ltd. (PRC)
Alisoft Holding Limited (Cayman Islands) Alisoft
Investment Holding Limited (BVI)
Alisoft China Holding Limited (Hong Kong)
Zhejiang Alibaba Cloud Computing Ltd. (PRC)
Alibaba Cloud Computing Ltd. (PRC)
Hangzhou Alibaba Advertising Co., Ltd. (PRC)
Hangzhou Ali Technology Co., Ltd. (PRC)
Zhejiang Taobao Network Co., Ltd. (PRC)
Zhejiang Tmall Network Co., Ltd. (PRC)

Consolidated financial statements include company, its subsidiaries (including wholly-foreign-owned enterprises), and variable interest entities (for which the
company is the primary beneficiary). A subsidiary is an entity which the company owns more than 50% of the voting power. A VIE must be consolidated by the
primary beneficiary if the non-company equity holders do not have characteristics of a controlling financial interest. A VIE must be 100% owned by PRC citizens
or by PRC entities owned by PRC citizens that hold the Internet content provider licenses or other business operations licenses in which foreign investment is
restricted or prohibited.
 A cqu isi t io n / I nv e s t m e nt
S t rate g y of Al ibaba
( conti n u ed)

A li ba ba C E O outlines 2016 E x p a n s i o n S t ra t e g y
➔ Increase market share in fi rst-ti er China cities.
➔ Promote e-commerce among rural C h i n e s e residents.
➔ Promote e-commerce globally.

C E O i n d i cate d t hat A l i ba ba will:

➔ Continue to build-up channels that allow international brands and merchants the opportunity to sell online to
Chinese consumers (Tmall Global, g.taobao.com).
➔ Invest in operations that allow retailers to tap the growing purchasing power of rural Chinese consumers, and
platforms that help rural farmers sell and deliver agricultural products to online
big-city shoppers.
➔ Continue to drive innovation in omnichannel retailing and
build-up on-demand service offerings.
 A cqu isi t io n / I nv e s t m e nt
S t rate g y of Al ibaba
( conti n ue d)

G eneral A p p r o a c h to A c q u i s i ti o n / I nve st m e nt S t ra t e g y

➔ Full acquisition.

➔ Initial minority investment (instead of full acquisition)

when investee:
◆ Has strong management in place.
◆ Does not fit within core business operations but
generates synergies.
◆ Demonstrates clear strategic value but capital/integration risk support a phased-in
approach.

➔ Post-initial investment: increase investment or acquire if business results, cooperation and

relationship with management show increasing value to ongoing business strategy (UCWeb,
AutoNavi, Youku Tudou).
 R e c e n t Mergers & A c qu i s i ti o n s
A c ti v i ty of A lib aba G rou p

2010 Vend io Se r vi c e s 100.0% Platform that provides sales management software by subscription across
San Mateo, CA multiple online sales channels. $27.8M.
2013 Ka n b ox 100.0% Network disk and synchronization tool that is used for file
management and backup.
2014 Alibaba Health 70.0% Develops the technology for systems related to pharmaceutical and medical products
Info rmati on in China. Chairman of Company owns 30% through general partner (Yunfeng
Te c h n o l o g y Lim ited Capital). Subsequent to March 2016, Company and Alibaba Health entered into a
services agreement under which Health will provide outsourced services to product
categories in Tmall online pharmacy.

2014 A u to N av i Ho l d i n g s 100.0% Provider of digital map content and navigation based solutions in China. In May
Limited 2013, Company owned 28%. In July 2014, Company purchased all remaining shares.
Rational of purchase: enable Company to expand its products and services beyond e-
commerce.

2014 U C We b , Inc. 100.0% Developer of leading mobile web browsers in China, India and Indonesia. Prior to
June 2014, Company owned 66% of equity. UCWeb is an important part of
Company’s ecosystem to offer mobile services from China as well as other parts of
the world. Strengthens user engagement and enables new marketing channels for
merchants.
 R e c e n t Mergers & A cq u i si ti o ns
A cti vi t y of Al ibab a G rou p
( conti n ued )

2014 S h e n z h e n O n e To u c h 10 0 .0 % Provider of comprehensive export-related services tailored to the needs of small

B u sin es s Ser vice s, Ltd. businesses in China. Prior to 2014, Company owned 65% interest. Rational: to
expand Company’s products and services. Company believes acquisition will help to
serve the wholesale sellers on the international wholesale marketplace by adding
services.

2015 G u a g d o n g Yu eke 10 0 .0 % Develops software for ticket bookings and theater management.
So ft wa re $134M. Purchased by Alibaba Pictures Group.
E n gi n e e r in g Co .

2015 Alibab a Pic t ure s G rou p 49.5% Producer of movies and television programs in China. In June 2014, Company owned
Lim ite d 60% equity interest. In June 2015, Pictures placed newly issued stock. Company’s
interest diluted to 49.5%. Company de-consolidated Pictures as a result of the
dilution.

2016 Beijin g U ndiscl China-based search engine for mobile entertainment. $128M in 2
Z h u o y i xu n c h a n g d. rounds.
S c i e n c e & Te c h n o l o g y
Limited Co . (Wandoujia)

2016 Q u ixey Inc. Undiscl Mobile technology company that provides better access and engagement with apps.
Mountain View, CA d. $134M in 5 rounds. Company initially invested in equity and followed with debt
financing.
 R e c e n t Eq u i t y I nve st me nt
A cti vi t y o f Al ibaba G rou p

2014 Weibo Co r po rati o n 30.0 % Social media platform in China. In 2013, Company made initial investment of 18%
interest. Upon Weibo’s IPO, Company acquired additional shares pursuant to an
option to increase interest.

2014 Haier Elec t ro nic s 2.0% Research, development, manufacture and sale of electrical
Grou p Co., Ltd. appliances, especially large home appliances. In addition, Company
completed an acquisition of 9.9% equity interest in a wholly-owned subsidiary of
Haier that is engaged in the logistics business in China. Furthermore, Company
completed the subscription for a convertible bond which is either convertible into
ordinary shares of Haier or into a 24% equity interest in the subsidiary.

2014 1stdibs (FirstDibs) U ndisclsd. Retailer of upscale interior designs and decorations. $15M series C round
New York, NY financing.

2014 Tu torGro u p U ndisclsd. Multi-national on-line education company with an emphasis on language. $100M
from Company and 2 other investors.

2014 Ch inaVision U ndisclsd. Producer of several popular Chinese-language TV shows and movies.
$804M Company paid for a majority st ake.
 R e c e n t Eq u i t y Inve st m e nt
A cti vi t y of Al ibab a G rou p
( conti n ue d)

2014 Tan go Me , Inc. Undisclsd. US-based messaging app. 200M registered users, 70M MAU. $280M
Mountain View, CA investment.

2014 Guangzhou 40.0% Professional soccer club team in the Chinese Super League. Possible 50%
Eve r gra n d e interest (conflicting info).
Ta o b a o F.C.

2014 Ka b a m , Inc. Undisclsd. Company produces online and mobile games. $120M deal involves
San Francisco, CA Company distributing Kabam’s products in China via Taobao.

2014 MomentCam Undisclsd. Photo app that transforms people into comic book characters.

2014 Inti me Retail 9.9% Leading department store operators in China. Company also has a subscription for
(Group) C o m p a n y a convertible bond which, upon conversion, would increase interest to 26%.
Limited

2014 Si n ga p o re Po s t 10.0% National post service provider in Singapore and leading provider of e- commerce
Limite d logistics solutions in the Asia-Pacific region. Company agreed in 2015 to
2015 34.0% subscribe to newly issued ordinary shares which will raise Company’s interest to
Post subsidiary 15%. Provides end-to-end e-commerce logistics and fulfillment services across
the Asia-Pacific region. Subject to customary closing conditions.
 R e c e n t Eq u i t y Inve st m e nt
A cti vi t y of Al ibab a G rou p
( conti n ue d)

2015 M a g i c Lea p, Inc. 10.0% Technological company focuses on development of augmented reality technology.
Dania Beach, F L Investment is in newly issued convertible preferred shares.

2015 C M C Ho l d i n gs Limited 21.0% Platform that focuses on the media and entertainment sectors.
Objective of partnership is consistent with that of CMC.
Limited partnership 20.0%
managed by
founder
of CMC

2015 Beijin g Shiji 13.0% Engaged in development and sale of hotel information management system software,
Info rmati on integration and service.
Te c h n o l o g y Co., Ltd.

2015 Hu ayi Brot he rs 4.0% Production of TV programs and movies in China.

Media Co rp o rati on

2015 Ko u b e i Ho ld in g 49.6% Integrates the convenient aspects of mobile commerce and big data to provide
Limited consumers with information and promotional benefits from local restaurants in
China. Joint venture with Ant (Ant owns 49.6%). Unrelated third-party affiliated
with a major Chinese restaurant chain holds the remaining minority equity
interest.
 R e c e n t Eq u i t y Inve st m e nt
A cti vi t y of Al ibab a G rou p
( conti n ue d)

2015 Y TO E x p r e s s 12.0% One of the leading express courier companies in China. YTO is one of
(Lo gisti c s) Co., Ltd. the strategic express courier companies participating in the data
system of Cainiao Network to fulfill orders from the Company’s core
commerce business. Another company filed an application to
purchase all equity interest in YTO through a reverse takeover in
March 2016.

2015 Meizu Te c h n o l o g y 29.0% Leading smart phone manufacturer in China.

Co r po rati o n Limited

2015 Was u Media Ho ld in g 0.0% Digital media broadcasting and distribution in China. Company
Co., Ltd . invested in wealth management products which serve as collateral to
the issuing bank for issuance of financing to one of Company’s
founders to support his minority interest in Wasu. Rational:
Company entered into strategic cooperation agreements with a Wasu
major shareholder in order to enhance the Company’s capabilities
and profile in the China entertainment sector.

2015 B e st L o g i s ti c s 22.0% Provider of comprehensive supply-chain solutions and services

Te c h n o l o gi e s including express delivery, freight delivery, warehouse fulfillment,
Limited software development and consulting to cross-border logistics
services. Since 2009, Company has participated in several rounds of
financing.
 R e c e n t Eq u i t y I nve st me nt
A cti vi t y of Al ibab a G rou p
( conti n ued )

2015 Ly ft , Inc. U ndisclsd. Peer-to-peer transportation platform.

San Francisco, CA $2.01B in 9 rounds.

2015 J a s p e r Info tec h U ndisclsd. India’s largest online marketplace in terms of sellers transacting on its platform.
(Sn ap d eal.com ) $1.76B in 12 rounds.

2015 One97 U ndisclsd. India’s largest mobile commerce platform. $680M. Investment may be through
C o m m u n i c ati o n s Ant Financial.
Limited (Pay t m brand)

2015 Sn ap c h at , Inc. U ndisclsd. Photo messaging app. $200M investment. As app is blocked in China, it is
Venice, CA unclear what value the investment brings to Company. Company’s competitor,
TenCent, invested in Snapchat in 2013. Snapchat files for IPO (largest IPO since
Alibaba in 2014).

2015 Suning Com m erce
Grou p Co., Ltd.
(deal not completed by
end of fiscal year March
31, 2016)
19.99% One of the largest consumer electronics retail chains in China. Suning will
subscribe to newly issued shares of the Company which represents a 1.1% interest
in the Company for cash. The companies have entered into a strategic collaboration
agreement to build on synergies in e-commerce, logistics and incremental business
through joint omni-channel initiatives.
 R e c e n t Eq u i t y Inve st m e nt
A cti vi t y of Al ibab a G rou p
( conti n ue d)

2016 R a jax Ho ld in g 22.0% Operator of one of the largest mobile food ordering and delivery services in China.
(“Ele.me”) Rational: complements Company’s investment in Koubei in local services. Ant
Financial and Company subscribed for newly issued convertible preferred shares.

2016 Xiaoju Kuaizh i Inc.
(Didi C h u x i n g )
10.0% Provides taxis and vehicles for hire in China via smartphone
applications. World's largest mobile transportation service platform
(ride-sharing company providing transportation services). Purchased
Uber's China unit in August 2016. In 2016, committed to invest a
further $200M (initial investment $445M).

2016 Yo u ku Tu d o u Inc. 98.0% Leading multi-screen entertainment and media company. In May
2014, Company owned 16.5% interest. In May 2016, Company
purchased all remaining shares that it - or its affiliate Yunfeng Capital
- did not own and Youku became a consolidated subsidiary. Yunfeng
has option to purchase up to 15% of equity. Youku is a core part of the
Company's strategy to offer digital entertainment to consumers.

2016 Cain iao S m a r t 47.0% Operational experience in logistics, retail, and real estate in China. In
L o g i sti c s N et w o r k 2014, Company took part in establishing Cainiao Network Technology
Limited Co. Ltd. (CNTCL) with other parties and owned a 48% interest. In
March 2016, CNTCL restructured and became a wholly-owned
subsidiary of Cainiao Smart. Company's interest was diluted to 47%.
 R e c e n t Eq u i t y I nve st me nt
A cti vi t y of Al ibab a G rou p
( conti n ued )

2016 U C A R (S h e n z h o u U ndisclsd. One of the largest chauffeured car service providers in China. $1.37B in 3 rounds.
Zuche) AutoNavi to be used in services.

2016 L a z a d a Grou p S.A.
(deal not completed by
end of fiscal year March
2016)
Controllin Operates e-commerce platforms in Indonesia, Malaysia, The Philippines,
g Stake Singapore, Thailand and Vietnam. Company and certain Lazada shareholders have a
put and call arrangement (Company right to purchase, shareholders right to sell
collectively) for remaining equity interest during a 6 mo. period after the first
anniversary of the closing.

Acquired media business which includes South China Morning Post (premier
2016 S C M P Gro up Li mite d Asset English newspaper in HK, magazine, outdoor media, events and conferences, and
purchase digital media assets.

Integrated lottery technology and services company in China. Ant Financial owns
2016 AG Te c h 59.0% most other interest. 59% equity interest assumes that Company subscribes for
Ho ld in g Lim ited convertible bonds which are convertible into ordinary shares.

Supermarket chain. Rationale: increase Company's retail presence. In November,

Company subscribed to private placement equivalent to 25% stake. Company also
2016 Sa n j ia n g S h o p p i n g 32.0% plans to invest in convertible bonds and a share transfer.
C l u b C o . Ltd .
 O t h er S t rate g i c I nve s t m e nt s

● Launched in 2016.
● Applicants are required to use at least one of Alibaba’s services.
● The missions of the funds are to help Hong Kong and Taiwan-based
entrepreneurs and young people realize their dreams and visions for their
businesses and communities.

Taiwan Entrepreneurs Fund ($312M)

2016 Hea l t h 2 Sy n c Makes an app for diabetics. Financing round led by Company raised $3M. May
align with Alibaba Health ambitions.

2016 I stag in g Makes virtual and augmented reality software. Creates tours of property listings and interior
designs (allows customers to virtually try furniture in their homes).
$2M investment. Technology may be applied to enhance shopping experience for Company’s
users.
 O t h er S t rate g i c I nve s t m e nt s
(conti nu ed)

Hong Kong Entrepreneurs Fund ($129M)

2016 YEECHOO Operates an online designer apparel rental business.

2016 Sh o plin e Provides cloud based computing solutions for small and medium-sized companies to
launch/manage e-commerce operations.

2016 G o G o V an Offers intra-city logistics services through a real-time platform that connects customers
with delivery service providers.

2016 G ran a A fashion e-commerce retailer that offers wardrobe essentials created from
fabrics sourced worldwide.

2016 D ay D ay C o o k Creator of food and lifestyle content in Asia which produces bilingual cooking videos with
recipes.

2016 NOSH An O2O food delivery company that prepares and delivers health-conscious meals.
 “
MARKETING

ST R ATEGIE
S
 Marketi n g S t ra te g y

C2C B2C B2 B

A li ex p re s s A li b ab a
International ebay Amazon A l ibab a

Domestic Ta o b a o .Tmall 1688

 Pr i ci n g an d Mem b e rs h i p
S t rate gi e s

⊡ P r i c ing: Alibaba u ses a competitive pricing model where they s et

the price of a product bas ed on comparing what competitors are
pricing the same product. Pricing is one of the marketing
strategies that Alibaba deploys to set a low price in order to
increase sales and market share.
⊡ Di s co unt : Alibaba’s intent is to stimulate sales as well as
retaining customers through their discounting model. Discounts are
commonly offered on the company’s sites during festivals and
when customers make bulk purchases.
⊡ F re e Membersh ip: Earlier in Alibaba’s existence the company
offered new customers free membership to their site as a tactic to
attract new users. Once the company reached a significant
membership registration milestone it withdrew its free
membership and began charging membership fees.
⊡ Va l u e - A d d e d Ser v i ces : Services such as shipping, instant
delivery, guarantees, and warranties are offered to help increase the
profitability of the product sale.
 O v e rs e a s S t rate g i e s

⊡ Ta rget : The global marketplace based in

English Language that cater to international
exporters and importers.

⊡ G a te w ay to Ch i na: Alibaba’s B2B

marketplace has acted like a gateway to
China and the growing economy’s enormous
capacity to produce goods that the world
wants.

BUILD TRUST
Alibaba does everything it can
to build more trust, opening the
gates wider to the world. This is
evidenced in initiatives like
business verification, factory
inspections, and stringent
demands on quality of products.
DISPLAY ADS
AliExpress, utilized an aggressive
online marketing strategy, and
managed to surpass eBay in global
desktop traffic. AliExpress
manage to increase their
worldwide desktop traffic by
366% from May 2014 to July
2015.
O v e rs e a s S t rate g i e s
LOCALIZATION
In order to get a huge portion of
market share, Alibaba has localized the
e-trade services by developing websites
that locate to 100 different languages
and modify their design and layouts,
which suits the local cultural in
overseas. On the Single’s day, they start
to allow customers in Hong Kong and
Taiwan to purchase discounted items
using local currency and local payment
methods.
EFFECTIVE PROMOTION METHODS ADDITIONAL FEATURES
Alibaba charges sellers for the Alibaba offers many tools and
benefit of using their promotion features which are also paid for by
methods. This ensures that the seller. These include a search
customers see your product engine, link engine, forums and
specifically when they search for live help.
related items.
 C a m p a i g n S t rate gi e s

Si ngl es ’ D a y - China’s M as s ive S h o p p i n g

Hol iday
 C a m p a i g n S t rate g i e s

S h o p p i n g is n o t just a trans acti o n in China , it is an event.

Celebration of mark-
downs &
Star-studded countdown
gala
&
Live-streamed contests
&
Reality TV shows
through multiple
channels
Wa t c h Video
 C a m p a i g n S t rate gi e s

Nov. 11th, the annual Singles’ Day, is a

shopping celebration organized by Chinese
e-commerce giant Alibaba. The e-tailer
began celebrating the day, a “folk holiday”
on which China’s many single people buy
gifts for themselves , in 2009 with just
27 merchants. Since then, the event has
grown into a multibillion- dollar
enterprise. Th i s year, it includes
40,000 merchants offering discounts
on millions of products.
 C a m p a i g n S t rate g i e s

Singles’ Day has become not just

the largest e-commerce shopping
day in China but the largest in
the world.
Singles’ Day sales have grown
from around $100 million in
2009 to $17.8 billion in 2016,
according to research firm IDC.

For comparison, Cyber

Monday in the U.S.
generated $3.45 billion in
sales this year (2016).
 Rural Tao b a o

Estimated 6 0 0 million
Chinese reside in rural areas.
Th ey are not only a source of a
vas t number of products and
resources in demand.
 Rural Ta o b a o

⊡ The number of online shoppers in rural areas

increased to 77.14 million in 2014,
expanding 40.6% year-over-year, according to
CNNIC.

⊡ At the end of 2014, there were just 178

million Internet users in rural China, fewer
than one out of very three rural residents,
according to CNNIC.
 Rural Tao b a o

⊡ In October 2014, Alibaba Group announced it

would invest $1.6 billion (RMB10
billion) over the next three to five years to
build 1,000 county-level “Taobao rural
operations centers” and 1 0 0 , 0 0 0
village-level “Taobao rural service centers”
throughout China.

⊡ As of the end of 2015, more than

12, 000 village-level service centers
were open in more than 2 0 provinces.
 Fu t u re S t rate g i e s

In 2016, Buy+ was launched

ahead of China’s Singles’ Day
shopping festival.

On Day One, a n hour aft er it

l aunc he d, 3 0 , 0 0 0 p e o p l e h a d
tried t he platf orm.

The occasion produced 1 50 , 0 00

cardboard headsets sold.
Questions?

TBD
TBD
 “
THANK YOU