Professional Documents
Culture Documents
eCommerce
remains limited
in developing
countries.
4
How « online » are European
SMEs?
And while a majority of European SMEs are connected,
and most even have their own websites. . .
•Business use of the Internet and websites, as a percentage of businesses with 10 or more employees
•Source: OECD Science, Technology and Industry Scoreboard 2007
•http://dx.doi.org/10.1787/118144527771
European Enterprises in e-Commerce
. . . most are still not fully utilizing the power of the internet to
promote themselves and products
In the EU, on
average, only 15% of
enterprises receive the
order online, and 23%
purchase online.
Source: UNCTAD Information
Economy
Report
2007-2008
Crisis or Opportunity?
With the recent downturn an Alibaba survey shows that this
recession will serve as a catalyst for economic revival. . .
• 75% of Americans surveyed believe new
entreprenuers and SMEs will be the key to
economic revival
• 4 out of 5 considered starting their own
business
• 44% who considered starting their own
business said not understanding where to
find the right suppliers was the top reason
for not moving forward
Search/
Evaluate Negotiate Transact
Discovery
9
Alibaba.com B2B
Alibaba.com B2B Marketplaces |
Anatomy of the Marketplace
Suppliers Buyers
International Marketplace
International SMEs Facilitates global trade between China and International Buyers
international suppliers and buyers
8 mm registered users as of Dec 31, 2008
59,000 paying customers as of Dec 31, 2008
Services / Services /
Community + Marketplace platform
Products to suppliers Products to buyers
• Keywords & premium placement • Close to 4.2 mm storefronts of suppliers • Search
• Third-party authentication & • Instant messaging • Directory
verification • Trade negotiation • Inquiry RFI/RFQ forms
• Trust profiles • Over 200 online community forums for • Post buying leads
• Tools to manage CRM and trade user groups • Tools to manage CRM and
info trade info
11 Strictly Confidential
Alibaba.com B2B Marketplaces |
Two Major Components of Alibaba.com
1. Marketplace 2. Community
12 Strictly Confidential
Alibaba.com B2B Marketplaces |
International Marketplace
Key features on product listing page:
1. Search Engine
• Keyword Search
• Product Category
2. Supplier/Product Information
• Company Products
• Company Profile
• Company Video
13 Strictly Confidential
Global network at your fingertips
A truly global network for importers and exporters of mechandise,
finished products, component parts and raw materials
Manufacturers Export
Manufacturers
Import
Trading agents Alibaba e-marketplace
Global Suppliers
Retail shops
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Alibaba.com B2B Marketplaces |
International Marketplace
India, 11%
Others, 51%
European Union
(excluding UK), 9%
China, 7%
United Kindgom,
Canada, 2% 5%
15 Strictly Confidential
Alibaba.com B2B Marketplaces |
Key Operating Metrics
# of Registered Users # of Storefronts
‘000
MM
% 4,000 %
40 59 = 64
= 3,500
35 G R GR
CA 3,000 CA
30
25 2,500
4,600
20 38.0
2,000
15 27.6 1,500 2,957
10 19.8 1,000 2,073
5 11.0 500 1,295
6.0 640
0 0
2004 2005 2006 2007 2008 2004 2005 2006 2007 2008
# of Paying Members
‘000
400 %
= 53
GR
300 CA #1 E-Commerce (Marketplace) Website
200 432
#1 International Business & Trade Website
305.5 (Import and Export in China)
100 219.1
141.6
77.9
0
2004 2005 2006 2007 2008
Note:
1. Company data as of Dec 31, 2008
16 Strictly Confidential
Complementary strength of Alibaba with TPOs
and trade associations/chambers
Combining the core strengths of chambers/associations with the marketing
reach of an eMarketplace creates new opportunities for members
Global Reach
• Traffic (critical mass on the B2B e-
marketplace)
• Cost effective marketing channel
Partnership Model:
KITA and Alibaba.com jointly provide KITA member SMEs with a special package which include
Alibaba.com International TrustPass membership and KITA’s tradeKorea e-portal. Each SME would be
eligible to a subsidy which could only be used against subscribing value-added services to facilitate
their listing, such as Korean-to-English translation services. Educational courses on e-commerce and
online marketing would also be provided to participating companies for their better utilization of the
Internet and Alibaba.com.
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Practice Sharing – TPO program in
Taiwan
Partner:
Taiwan External Trade Development Council (TAITRA, www.taitra.org.tw) –
A non-profit trade promotion organization in Taiwan which is jointly sponsored by the Taiwan government,
industry associations, and several commercial organizations
Partnership Model:
Alibaba formed partnership with Taiwan Trade Association, and provide for Taiwan SMEs a bundled
package which includes membership of both Alibaba.com Gold Supplier and TAITRA’s Taiwan trade e-
Portal. Those who joined the bundled membership would get a NT10,000 discount off the original total
price of the two memberships. Alibaba and TAITRA also jointly host road shows and seminars to help SMEs
breakthrough in the downturn of int’l trade situation.
19 Strictly Confidential
Practice Sharing – Government support
program in Turkey
Partner:
İHRACATI GELİŞTİRME ETÜD MERKEZİ (IGEME)
IGEME is the government run Export Promotion Center for Turkey (http://www.igeme.org.tr/indexe.cfm -
in Turkish)
Partnership Model:
IGEME approved Alibaba on a list of B2B marketplaces that are all qualified for subsidies. Provided you
submit the necessary paperwork, IGEME will reimburse you 50% of the membership fee (up to an amount
I think of US$3K). SMEs can apply for multiple memberships from different websites until they reach the
cap.
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Practice Sharing – Government subsidy
program in Chile
Partner:
Country of Chile
Partnership Model:
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Practice Sharing – Government subsidy
program in Washington, US
Partner:
State of Washington, United States
Partnership Model:
Individual States in the US have created economic development organizations to promote direct
investment as well as companies within the State itself. The logic is simple and practical: the more
revenue made by companies within the state, the more tax revenue these companies will be able to
generate.
The State of Washington is aware of their state’s value as a brand, and the need to support as well as
develop this value to promote commercial activities, which is what the State Your Product program
hopes to accomplish. Alibaba.com provides the State of Washington an opportunity to promote their
companies via the Transfer Express product integration process to help them bolster the impact of
Washington State companies in the global marketplace.
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Practice Sharing – The World Chambers
Network
Partner:
As part of the ICC, the WCN portal officially links the virtual online commerce space to the
dynamic and only truly global physical business network of over 14,000 registered
Chambers of Commerce and Industry (CCI) that in turn represent over 40 million member
businesses worldwide.
Partnership Model:
Alibaba and the WCN today announced an MOU to cooperate on a number of activities and
projects including but not limited to the promotion of WCN’s members on a global basis on
the Alibaba marketplace, exchanging relevant trade information between the two parties
and explore the possibility of increasing the level of trust within the communities by
exploring collaboration with Chamber Trust for WCN and Trustpass for Alibaba.com
23 Strictly Confidential
Thank you!
brian@alibaba-inc.com
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