Empowering SMEs Worldwide: The Alibaba Story Brian A. Wong Senior Director International Business Development and Marketing WSIS follow-up and implementation: Action Line Facilitation meeting "E-business“ May 2008 05/06/09 13:57
An Unlikely Story. . . Tea House Hangzhou, China
Source: International Trade Centre www.tradeforum.org/news/fullstory.php/aid/234/E-Trade_Opportunities:_Are_Developing_Countries_Ready_.html
UNCTAD Information Economy Report 2007-2008
Challenges in Developing Countries for Ecommerce
Few fully utilize Internet and e-commerce: ICT not used in sales prospects or purchasing efficiencies.
Lack of online payment logistics: perceived difficulties in introducing online financing and payment, and customs collection and taxation applications.
Lack of trust on demand side.
Lack of awareness even among TPOs: less than half TPOs canvassed indicated a specific e-trade component in their national export development strategies.
But are they fully utilizing the technological tools available to prosper in the global economy?
A New Gateway to Global Trade 05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Challenges Solutions The advent of eMarketplaces has helped to address many of these issues. . . Lack of sales prospects or purchasing efficiencies.
Online market research
User forums/knowledge sharing
Robust global online company database
Lack of online payment, logistics, etc.
On-Offline partnerships (introducing relevant third party services in the export value chain)
Lack of trust
Introducing trust building mechanisms (authentication and verification, inspection services, etc.)
Lack of awareness and limited TPO support
Public-Private partnership (TPOs/TAs/IOs) to support e-commerce
Education campaign s (e-business champion event etc.) and trainings to target SMEs directly
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 (Web 2.0)
For members, by members, of members
“ Small is beautiful” E-Marketplaces: The Alibaba Approach Jack Ma Chairman of Alibaba.com . . . and Alibaba.com developed a particularly unique (yet simple) model
05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Average sourcing cycle: 3.3 – 4.2 months Source: The Aberdeen Group Traditional Sourcing Work Flow It addressed a key “pain point” for many buyers around the world. . . Traditional Sources of Supplier Information
Referral (colleagues, associates)
Industry magazines, trade journals
Search/ Discovery Negotiate Transact Evaluate 52% of time spent searching for/identifying appropriate suppliers 18% of time spent on RFQ development/ RFQ response 20% of time spent on screening/sorting proposals 10% of time spent on contract negotiations
Reduce business costs and time, particularly search
Streamline supply- and export-distribution chains
Brand building using cost effective media
eMarketplaces: a Window of Opportunities for SMEs The eMarketplace Value Proposition: eMarketplaces empower SMEs to become global players without the resources of a multi-national corporation . . . and in the process helped empower SME suppliers all over the world
Goal 8: Develop a Global Partnership for Development Target 18: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications Aligned objectives within public-private partnership Alibaba’s objective is consistent with the UN Millennium Development Goals (MDGs)
Alibaba’s Vision 05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt 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 To Be an Essential Partner to All Businesspeople 建立一家持续发展 “ 102 年”的公司 To Build a Company that Lasts “102 Years” Marketplace Community Long Term Vision
SMEs Spend More Marketing Dollars Online 05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Online Share of SME Marketing Budget Growing SME Usage of Online B2B Marketplaces MM Source: iResearch CAGR = 45.0%
Global network at your fingertips 05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt e-marketplace e-marketplace Retail shops Manufacturers Trading agents Global Buyers Manufacturers Trading agents Global Suppliers Export Import A truly global network for importers and exporters of raw materials, component parts and finished goods
World’s No.1 Online B2B Marketplace for International & Domestic Trade 05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt
Company data as of Dec 31, 2007
Alibaba.com represents a phenomenon which is changing the way SMEs around the world conduct business Sellers International Marketplace 4.4 million registered users (1) China Marketplace 23.2 million registered users (1)
Across more than 200 countries
Companies of all sizes
Diverse end markets
Ten to a few thousand employees
5,000+ product categories in 30+ industries
Company data as of December 31, 2007
Recognition by Global Thought Leaders In a Different League from Its Peers…
“ Best sites for global entrepreneurs”
A Premier Global Brand Forbes Magazine “Best of the Web” 2000 - 2006 US Entrepreneur Magazine “Best Website for Entrepreneurs” June 2004 Far Eastern Economic Review “Best Global B2B Marketplace” 2000 HBS Case Studies 2000 and 2001
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
Alibaba.com’s International Marketplace South America 3% India 8% China 7% South East Asia 13% EU 9% UK 6 % US 18% Middle East 4% Australia 3% Canada 3 % With over 4.4 million registered members from 200 countries & regions, it’s truly a global community
Search Alibaba International - B2B Alibaba China - B2B Taobao – C2C & B2C Shop Choose Transact Pay Integrated eCommerce Platform China Wholesalers Overseas Buyers/Importers Consumers Exporters China Wholesalers Retailers/ Power Sellers
One Stop Services for SME Exporters SMEs www.alibaba.com (International Marketplace) Export to Globe Export to China www.alibaba.co.jp (Japan Marketplace) Export to Japan www.alibaba.com.cn (China Marketplace) New
Alibaba.com partnerships and is looking for more partners including public-private partnership! Alibaba.com cooperates with leading organizations all over the world. . .
Amazingly, I got orders within five days from Europe after joining! I was really surprised to see such quick results with Alibaba
After joining TrustPass, I started getting about 20 per week.
Now, our customers cover from Italy, France, China, America, Ireland and Spain.
05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Member: Mr. Hammad Kanwal Company: FASHIONS CARE Type: Manufacturer Size: 11-50 people Country: [Pakistan] Products: T-shirts, polo shirts, denim jeans, cotton gloves “ With Alibaba, we are worldwide!"
We have been associated with Alibaba for two years, and since that time we have had a significant amount of serious enquiries. There is not a single day that goes by when we don't get enquiries routed through Alibaba. Alibaba's service is also an invaluable source of commercial news that not only provides information but also forecasts the rising trends in the global market. Being a TRUSTPASS member has seriously added more credibility to our business and increased our number of fraud-prevented customer inquiries.
As a TrustPass member from India, we are extremely happy with the services Alibaba provides. We received our first buyer form Alibaba and there have been many more since. Today, we receive 80% of our business through Alibaba and we believe that this will only increase in future.
05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Member: Mr. Moola Ram Potalia Company: TOWN AART Country: [India] “ 80% of Our Business Comes From Alibaba!
“ The Woolworths China Sourcing Event was a great success. It allowed the Woolworths sourcing team to meet many quality new suppliers. Alibaba was very professional in its preparation and management of the day, leveraging its extensive knowledge of quality suppliers to target the right companies to meet our long-term sourcing needs.“
05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Alibaba.com Holds Private Sourcing Event for Woolworths Limited Woolworths Limited is the largest retailer in Australia, serving customers across the nation for over 80 years. Woolworths is one of Australia's top companies by market capitalization, with sales reaching A$42.5 billion in the 2006/2007 financial year.
"I have discovered Alibaba.com at Ambiente 2004 where the Alibaba team introduced me the company. I have since been using the website on a regular base (at least once per week) and I think it's a great sourcing tool.
I find Alibaba very professional and easy to use. I searched and found many suppliers and I have also posted buy leads attracting quick and good quality responses from the suppliers."
05/06/09 13:57 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Customer: Mr Fernando Lomely Company: Genesis Ferran S.A. De C.V. Country: Mexico "I have also posted buy leads attracting quick and good quality responses from the suppliers."