Transcript DRAFT – Strictly Confidential

Empowering SMEs Worldwide:
The Alibaba Story
Arthur Chang
Vice President in Global Sales
Alibaba.com
IV INSME Association General Assembly
2nd July 2008
An Unlikely Story. . .
Tea House
Hangzhou, China
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E-Marketplaces: The Alibaba Approach
A Hangzhou Teahouse
• A marketplace provides the “cups, tea and scenic
surroundings” to facilitate match-making between
buyers and sellers
• Customers bring the products and ideas
• User generated content:
For members, by members, of members
“Attract the shrimps (sic.) and the
whales will come.”
Jack Ma
CEO Alibaba.com
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World’s No.1 Online B2B Marketplace
for International & Domestic Trade
Alibaba.com represents a phenomenon which is changing the
way SMEs around the world conduct business
Sellers



Buyers
Typically
SMEs
Ten to a few
thousand
employees
5,000+
product
categories in
30+
industries

International Marketplace
4.4 million registered users (1)


Across more
than 200
countries
Companies
of all sizes
Diverse end
markets
China Marketplace
23.2 million registered users (1)
Note:
1. Company data as of Dec 31, 2007
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Alibaba.com- from SME, and for SME
Since its inception more than 9 years ago, Alibaba.com has grow at an
amazing rate
1999
Employees: 18
Office in Jack Ma’s Hangzhou apartment
2008
Employees: More than 10,000
Offices: Hangzhou (HQ), Beijing, Hong Kong,
Silicon Valley (US), Geneva (Switzerland), plus
30+ sales offices across China
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Alibaba.com’s Growth:
a SME Innovation Story
Growth seedlings:Market:
High Growth Innovative
SMEs
Sprouts
(product):
Seed: (idea)
Entrepreneurial
Innovative
Team
Technologies
with Good
•SOFTBANK and
Market
Goldman Sachs
Potential
become venture
•Alibaba
founded in Jack
Ma’s apartment
in Hangzhou by
Jack & other 18
founders,
started from
500K RMB
•1 million
Tree: Scale up •IPO on HKSE (Nov 6)
•Over 27.6 million registered member
•Over 1 billion RMB profit
•Over 5,000 employees
•1 million
RMB tax
paid daily
RMB profit
daily
backers
•1 million RMB
revenue daily
•Company
breaks even
•Over 1 million
registered
members
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Alibaba.com’s IPO

Raised US$1.7 billion, the world’s 2nd largest
Internet IPO after Google

US$180 billion in subscription monies
frozen, more than any other HK IPO

Price jumped 193% in the 1st day of trading,
best IPO performance in 10 years

China’s biggest Internet company by
market capitalization

Asia’s 2nd biggest Internet company

World’s 6th biggest Internet company
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All About SMEs!
 Big SME* market
 In China : 42 million SMEs
 In Europe: 23 million SMEs
 In US: 22 million SMEs
 Critical to global economy and trade
 In China: 58% of GDP, 68% of import and export volume, 75% of employment
 In Europe: over 50% of GDP, 60% of employment, over 100 million jobs
 In US: over 50% of GDP, 67% of export volume, 67% of employment
* SME means all employer firms, self-employment nonincorporated and incorporated.
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Alibaba’s Vision
Marketplace
让天下没有难做的生意
To Make It Easy To Do Business Anywhere
商人都要用阿里巴巴
Community
To Be an Essential Partner to All
Businesspeople
Long Term Vision
建立一家持续发展 “102年”的公司
To Build a Company that Lasts “102 Years”
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Global Network at Your Fingertips
A truly global network for importers and exporters of raw
materials, component parts and finished goods
Manufacturers
Export
e-marketplace
Global Buyers
Trading agents
Manufacturers
Import
Trading agents
e-marketplace
Global Suppliers
Retail shops
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A Premier Global Brand
In a Different League from Its Peers…
Recognition by Global Thought Leaders
Forbes Magazine
“Best of the Web”
2000 - 2006
HBS Case Studies
2000 and 2001
“Best sites for global entrepreneurs”
US Entrepreneur Magazine
“Best Website for
Entrepreneurs”
June 2004
Far Eastern
Economic Review
“Best Global B2B
Marketplace”
2000

Business for Diplomatic Action

CIA’s World Fact Book

Economist Intelligence Unit

The World Bank’s Doing Business
Database

U.S. Department of Commerce’s
International Trade Administration

UNCTAD Information Economy Report
2007-8
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Alibaba.com’s International Marketplace
With over 4.4 million registered members from 200
countries & regions, it’s truly a global community
UK 6%
EU 9%
India 8%
China 7%
Canada 3%
US 18%
South America 3%
South East
Asia 13%
Middle East 4%
Australia 3%
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11
Alibaba Global Offices
Beijing
Dalian
America
Tianjin
Shijazhuang
Qingdao
Europe
Africa
And
Middle East
(Silicon Valley)
Nanjing
Anhui
Jiaxing &
Chengdu
Wuhan Huzhou
Hangzhou
Jinhua
Chongqing
India
Japan
Dongguan
Longgang
Foshan
Shenzhen
Zhongshan Hong Kong
Guangzhou
(Geneva)
Changzhou
Suzhou
Shanghai
Ningbo
Shaoxing
Taizhou
Wenzhou
Fuzhou
Xiamen
Hong Kong
(Global Operation Center)
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Integrated eCommerce Platform
Search
Alibaba China - B2B
Overseas
Buyers/Importers
Alibaba
International
- B2B
Taobao – C2C & B2C
Shop
Consumers
Choose
Transact
Exporters
China Wholesalers
Retailers/ Power Sellers
Pay
China Wholesalers
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Alibaba’s Approach to Promote SME Innovation &
Entrepreneurship
…in the process help empower SMEs all over the world
 Technology: harness ICT and e-commerce with low entry
barrier and cost
 Financing: provide online platform for SME financing (in
China): credit loan, VC matchmaking and etc.
 Trainings: capacity building activities and events for SME’s
management expertise, entrepreneurial spirit and etc.
Alibaba empowers SME innovation in enterprise
competitiveness, market outreach, financing and more
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The 2nd APEC Business Advisory Council SME Summit
 Initiated by ABAC, China Council for the Promotion of International Trade (CCPIT), the
Hangzhou Government and Alibaba Group
 The 2nd ABAC SME Summit to be held in Hangzhou from 2-3 August 2008
 Showcases the innovation, dynamism and future prospects of SMEs in the Asia-Pacific
region
 Focus on three themes: IT, Training and Financing, which are crucial to the growth and
development of SMEs (e.g. €discussion of Venture Capital on SME’ development and
solution to SMEs Financing)
 VIPs including Mr. Masayoshi Son (CEO of Softbank Capital), Mr. Muhammad Yunus
and etc.
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Annual Global e-Business Champions
of the Year Contest
 Since 2003, Alibaba recognizes and promotes successful e-commerce usage
with an award
 The awards aim at educating SMEs how to benefit from innovative utilization of
ICT and e-commerce
 The annual contest recognizes the trustworthiness, passion, achievement,
innovation and social responsibility of entrepreneurs and SMEs using the
Internet as a tool to do business.
 Winners’ success story highlight: How e-commerce is changing the way
business works globally; What new business opportunities can be created
using e-commerce; Innovation, global reach, true business success
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Alibaba.com Partnerships
Alibaba.com cooperates with leading organizations all over the
world. . .
and is looking for more partners including public-private partnerships!
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Action Proposal with Partners
Partnership Building
•1.
Alibaba offers:
International Free Membership for all
partners’ SME members to promote
them worldwide
Promote partner organization
worldwide through banner, link, and
etc.
Provide tools such as search bar,
trade alerts and etc. on partner
website
Content exchange about SME related
subjects such as innovation etc.
Joint event, etc to educate ecommerce, SME innovation and etc.
Discounted paid membership with
value added service for partner’s
SME members
Partners offers:
Promote Alibaba locally through
banner, link, and etc.
Content exchange about SME related
subjects such as innovation etc.
Joint event, etc to educate ecommerce,SME innovation and etc.
To achieve the win-win results and long term partnership
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SME Success Story with Alibaba
“Alibaba brought us thousands of buyers!"

I started my business at the same time as Alibaba.com
showroom. In our first year Alibaba contacts and leads
brought to us USD300,000 and our website USD400,000.
Without online show room our market visibility would have
been much less.

In October 2005 we launched the USB stick battery
charger. This was an innovation which required our R&D
department to undertake a lot of research and work. Our
expectations were big.

The high on-line visibility offered by Alibaba offered a very
fast launch of this new product and 200,000 pcs orders
were dispatched to 8 countries within the next 30 days.
OEM followed with key customers in Germany and USA.

This on-line launch of new product through Alibaba helped
us to reach thousands of buyers at a critical time. New
orders are now repeated and expanded to other product
ranges. From one product promotion we developed an
entire range. The customers have an image from EverFast
as being a innovative and responsive company.
Member: Mr. Charles D’Haussy
Company: EverFast Rechargeables Ltd.
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Video: “I’m an Alibaba member!” –
•3/23/2017 5:38 PM
•20
Thank you!
[email protected]
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