Empowering Sm Es Worldwide


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  • 05/06/09 12:00
  • Empowering Sm Es Worldwide

    1. 1. Empowering SMEs Worldwide: The Alibaba Story Arthur Chang Vice President in Global Sales Alibaba.com IV INSME Association General Assembly 2 nd July 2008 05/06/09 12:00
    2. 2. An Unlikely Story. . . 05/06/09 12:00 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Tea House Hangzhou, China
    3. 3. 05/06/09 12:00 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt <ul><li>A Hangzhou Teahouse </li></ul><ul><ul><li>A marketplace provides the “cups, tea and scenic surroundings” to facilitate match-making between buyers and sellers </li></ul></ul><ul><ul><li>Customers bring the products and ideas </li></ul></ul><ul><ul><li>User generated content: </li></ul></ul><ul><li>For members, by members, of members </li></ul>“ Attract the shrimps (sic.) and the whales will come.” E-Marketplaces: The Alibaba Approach Jack Ma CEO Alibaba.com
    4. 4. World’s No.1 Online B2B Marketplace for International & Domestic Trade 05/06/09 12:00 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt <ul><li>Note: </li></ul><ul><li>Company data as of Dec 31, 2007 </li></ul>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) <ul><ul><li>Across more than 200 countries </li></ul></ul><ul><ul><li>Companies of all sizes </li></ul></ul><ul><ul><li>Diverse end markets </li></ul></ul><ul><ul><li>Typically SMEs </li></ul></ul><ul><ul><li>Ten to a few thousand employees </li></ul></ul><ul><ul><li>5,000+ product categories in 30+ industries </li></ul></ul><ul><li>Note: </li></ul><ul><li>Company data as of December 31, 2007 </li></ul>Buyers
    5. 5. 05/06/09 12:00 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Alibaba.com- from SME, and for SME Employees: More than 10,000 Offices: Hangzhou (HQ), Beijing, Hong Kong, Silicon Valley (US), Geneva (Switzerland), plus 30+ sales offices across China 1999 2008 Employees: 18 Office in Jack Ma’s Hangzhou apartment Since its inception more than 9 years ago, Alibaba.com has grow at an amazing rate
    6. 6. <ul><li>IPO on HKSE (Nov 6) </li></ul><ul><li>Over 27.6 million registered members </li></ul><ul><li>Over 1 billion RMB profit </li></ul><ul><li>Over 5,000 employees </li></ul><ul><li>Alibaba founded in Jack Ma ’ s apartment in Hangzhou by Jack & other 18 founders, started from 500K RMB </li></ul><ul><li>SOFTBANK and Goldman Sachs become venture backers </li></ul><ul><li>Company breaks even </li></ul><ul><li>1 million RMB revenue daily </li></ul><ul><li>1 million RMB profit daily </li></ul><ul><li>1 million RMB tax paid daily </li></ul><ul><li>Over 1 million registered members </li></ul>Alibaba.com’s Growth: a SME Innovation Story Seed: (idea) Innovative Technologies with Good Market Potential Sprouts (product): Entrepreneurial Team Growth seedlings:Market: High Growth Innovative SMEs Tree: Scale up
    7. 7. <ul><li>Raised US$1.7 billion, the world’s 2nd largest Internet IPO after Google </li></ul><ul><li>US$180 billion in subscription monies frozen, more than any other HK IPO </li></ul><ul><li>Price jumped 193% in the 1st day of trading, best IPO performance in 10 years </li></ul><ul><li>China’s biggest Internet company by market capitalization </li></ul><ul><li>Asia’s 2nd biggest Internet company </li></ul><ul><li>World’s 6th biggest Internet company </li></ul>Alibaba.com’s IPO
    8. 8. <ul><li>Big SME * market </li></ul><ul><ul><li>In China : 42 million SMEs </li></ul></ul><ul><ul><li>In Europe: 23 million SMEs </li></ul></ul><ul><ul><li>In US: 22 million SMEs </li></ul></ul><ul><li>Critical to global economy and trade </li></ul><ul><ul><li>In China: 58% of GDP, 68% of import and export volume, 75% of employment </li></ul></ul><ul><ul><li>In Europe: over 50% of GDP, 60% of employment, over 100 million jobs </li></ul></ul><ul><ul><li>In US: over 50% of GDP, 67% of export volume, 67% of employment </li></ul></ul><ul><ul><li>* SME means all employer firms, self-employment nonincorporated and incorporated. </li></ul></ul>All About SMEs!
    9. 9. Alibaba’s Vision 05/06/09 12:00 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
    10. 10. Global Network at Your Fingertips 05/06/09 12:00 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
    11. 11. Recognition by Global Thought Leaders In a Different League from Its Peers… <ul><ul><li>“ Best sites for global entrepreneurs” </li></ul></ul>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 <ul><ul><li>Business for Diplomatic Action </li></ul></ul><ul><ul><li>CIA’s World Fact Book </li></ul></ul><ul><ul><li>Economist Intelligence Unit </li></ul></ul><ul><ul><li>The World Bank’s Doing Business Database </li></ul></ul><ul><ul><li>U.S. Department of Commerce’s International Trade Administration </li></ul></ul><ul><ul><li>UNCTAD Information Economy Report 2007-8 </li></ul></ul>
    12. 12. 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
    13. 13. Japan Europe Africa And Middle East (Geneva) Hong Kong (Global Operation Center) India Alibaba Global Offices America (Silicon Valley) Shaoxing Beijing Tianjin Dalian Qingdao Chongqing Wuhan Nanjing Hong Kong Anhui Shenzhen Jiaxing & Huzhou Chengdu Shijazhuang Changzhou Shanghai Suzhou Ningbo Jinhua Taizhou Wenzhou Fuzhou Foshan Zhongshan Xiamen Dongguan Longgang Hangzhou Guangzhou
    14. 14. 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
    15. 15. <ul><li>Technology: harness ICT and e-commerce with low entry barrier and cost </li></ul><ul><li>Financing: provide online platform for SME financing (in China): credit loan, VC matchmaking and etc. </li></ul><ul><li>Trainings: capacity building activities and events for SME’s management expertise, entrepreneurial spirit and etc. </li></ul>Alibaba empowers SME innovation in enterprise competitiveness, market outreach, financing and more … in the process help empower SMEs all over the world Alibaba’s Approach to Promote SME Innovation & Entrepreneurship
    16. 16. The 2 nd APEC Business Advisory Council SME Summit 05/06/09 12:00 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt <ul><ul><li>Initiated by ABAC, China Council for the Promotion of International Trade (CCPIT), the Hangzhou Government and Alibaba Group </li></ul></ul><ul><ul><li>The 2nd ABAC SME Summit to be held in Hangzhou from 2-3 August 2008 </li></ul></ul><ul><ul><li>Showcases the innovation, dynamism and future prospects of SMEs in the Asia-Pacific region </li></ul></ul><ul><ul><li>Focus on three themes: IT, Training and Financing, which are crucial to the growth and development of SMEs (e.g. €œ discussion of Venture Capital on SME’ development and solution to SMEs Financing) </li></ul></ul><ul><ul><li>VIPs including Mr. Masayoshi Son (CEO of Softbank Capital), Mr. Muhammad Yunus and etc. </li></ul></ul>
    17. 17. Annual Global e-Business Champions of the Year Contest 05/06/09 12:00 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt <ul><ul><li>Since 2003, Alibaba recognizes and promotes successful e-commerce usage with an award </li></ul></ul><ul><ul><li>The awards aim at educating SMEs how to benefit from innovative utilization of ICT and e-commerce </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>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 </li></ul></ul>
    18. 18. Alibaba.com Partnerships and is looking for more partners including public-private partnerships! Alibaba.com cooperates with leading organizations all over the world. . .
    19. 19. Action Proposal with Partners <ul><li>International Free Membership for all partners’ SME members to promote them worldwide </li></ul><ul><li>Promote partner organization worldwide through banner, link, and etc. </li></ul><ul><li>Provide tools such as search bar, trade alerts and etc. on partner website </li></ul><ul><li>Content exchange about SME related subjects such as innovation etc. </li></ul><ul><li>Joint event, etc to educate e-commerce, SME innovation and etc. </li></ul><ul><li>Discounted paid membership with value added service for partner’s SME members </li></ul>Partners offers: Alibaba offers: <ul><li>Promote Alibaba locally through banner, link, and etc. </li></ul><ul><li>Content exchange about SME related subjects such as innovation etc. </li></ul><ul><li>Joint event, etc to educate e-commerce,SME innovation and etc. </li></ul>To achieve the win-win results and long term partnership Partnership Building <ul><li>1. </li></ul>
    20. 20. SME Success Story with Alibaba <ul><ul><li>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. </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>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. </li></ul></ul>05/06/09 12:00 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Member: Mr. Charles D’Haussy Company: EverFast Rechargeables Ltd. “ Alibaba brought us thousands of buyers!&quot;
    21. 21. <ul><li>06/05/09 12:00 </li></ul><ul><li></li></ul>Video: “I’m an Alibaba member!” –
    22. 22. 05/06/09 12:00 OPENSESAMEPresentationsAnalyst PresentationAnalyst Presentation (08.27.07).ppt Thank you! [email_address]