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Janice Chen
NBS, CINIC (2016, 2017 data)
China’s Internet Development Status in Rural Areas
Over
42.6%
of China’s total
population
Number of
Internet users in
rural areas:
191
million
26.9%
of total
netizens
Internet
coverage
in rural areas:
31.7%
China’s rural
population:
590
million
Key Issues in Rural China Today
Core
issues
• High price
• Few choices
• Long distance
Consumption
• High cost
• Few categories
• Little Information
Production
• Few channels
• Hard promotion
• Slow transportation
• Lack of talent
Sales
Strategy
Alibaba Strategy
eWTP
To empower global trade
Data-based business
Data-driven business
Big Data
Globalization
Rural Taobao
Taobao Villages
Rural
Development
MARKETING SERVICES & DATA MANAGEMENT PLATFORM
CORE COMMERCE LOCAL SERVICESDIGITAL MEDIA & ENTERTAINMENT
CLOUD COMPUTING
PAYMENT & FINANCIAL SERVICES
LOGISTICS
* Ant Financial, Cainiao, Alibaba Pictures, Weibo, Paytm, Tao Piao Piao, Koubei and Ele.me are affiliated entities
The Alibaba Economy
Rural
Taobao
Taobao
Village
Core 2: Public
entrepreneurship innovation
Core 1: E-commerce
service system
Market
Government
Platform
Alibaba Rural Ecosystem
New
Agriculture
Platform for
agricultural production tools
& technology
Upgrade online and
offline channels
Upgrade customers’
experience
Upgrade supply chain
and products
Platform for agricultural
products
Rural life service
platform
Big Data
Ecosystem
……
New
Retail
Business
Accelerating
New Agriculture & New Retail in food industry
Through Alibaba’s merchant data system, Mr. Wang did a market analysis on product
types and demands, which brought his business new development and growth:
1) Expanded product categories.
2) Built a warehouse to improve customer experience and lower management cost.
3) Updated marketing ability
Results: Revenue increased by 10 times to RMB 500 million from 2012 to 2017.
New Retail in Food Industry: Big Data Boosts e-Commerce Case
New Retail in Food Industry: Cross-border E-commerce Case
Summer of 2013
Cherries Sold: 168 metric tons
Total Orders: 84,000+
From US to China within 72hrs
New Agriculture: Rural Taobao
covering 1/3 counties and 1/6 villages in China
over the next three to five years.
RMB
10 billion
Program to build
1,000
county-level
service centers
100,000
village-level
service centers
Rural Taobao: Leading E-Commerce Market in Rural China
Rural Taobao Progress
29 Provinces
700 Counties
30,000 Villages
Market
Scale
30,000 Rural Taobao
Partners
60,000 Assistants
14.6% Bachelor Degree
32% Associate Degree
30+
Logistics Partners
3,000+
Logistics Trucks
Talent Infrastructure
Marketing Consumer Goods to Rural Areas
The three-links strategy: system link, merchandise link and service link.
The strategy integrates Alibaba’s e-commerce ecosystem, allowing
quality goods to enter rural markets efficiently so that
villagers can enjoy the same consumption and service experience as
urban residents.
Marketing Agricultural Materials to Rural Areas
Rural Taobao provides advanced equipment
to improve the production and transportation
in agriculture industry. Drones are
available through Rural Taobao to offer large-
scale pesticide spraying service to farmers.
Marketing Agricultural Products to Urban Cities(1/2)
It is estimated that 1,500 rural households in Tulufan’s Lukeqin,
Tuokexun county, Bachu and Hamiyiwu county will benefit from
the initiative in 2017.
• Built a local warehouse of over 10,000 square meter in size by teaming up with
Yanbian government
• Provided state-approved authoritative testing report to ensure the quality of rice
• 35 tonnes of rice sold out on the first day, with GMV exceeding 400,000 RMB
Marketing Agricultural Products to Urban Cities(2/2)
Rural Taobao provides public services such as online distance education ,video
conversation for families, return-home training.
Charity Case: Left-behind Children
The two agreed on their intention to cooperate in the future on issues regarding woman
and children and support for rural areas. Rural Taobao and the Food and Agriculture
Organization of the United Nations have also agree to work further on poverty alleviation.
Cooperation Opportunity with UN
*Assistant Secretary-General of the United Nations and UN Women Deputy Executive Director Ms. Lakshmi Puri, along with Alibaba partner
and President of Alibaba’s B2B business unit Ms. Dai Shan, spoke at the "SHE•ERA: 2017 Global Conference on Women and
Entrepreneurship", an event organized by the Alibaba Group in Hangzhou on July 10.
THANK YOU

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Alibaba Group: make a better rural China

  • 2. NBS, CINIC (2016, 2017 data) China’s Internet Development Status in Rural Areas Over 42.6% of China’s total population Number of Internet users in rural areas: 191 million 26.9% of total netizens Internet coverage in rural areas: 31.7% China’s rural population: 590 million
  • 3. Key Issues in Rural China Today Core issues • High price • Few choices • Long distance Consumption • High cost • Few categories • Little Information Production • Few channels • Hard promotion • Slow transportation • Lack of talent Sales
  • 4. Strategy Alibaba Strategy eWTP To empower global trade Data-based business Data-driven business Big Data Globalization Rural Taobao Taobao Villages Rural Development
  • 5. MARKETING SERVICES & DATA MANAGEMENT PLATFORM CORE COMMERCE LOCAL SERVICESDIGITAL MEDIA & ENTERTAINMENT CLOUD COMPUTING PAYMENT & FINANCIAL SERVICES LOGISTICS * Ant Financial, Cainiao, Alibaba Pictures, Weibo, Paytm, Tao Piao Piao, Koubei and Ele.me are affiliated entities The Alibaba Economy
  • 6. Rural Taobao Taobao Village Core 2: Public entrepreneurship innovation Core 1: E-commerce service system Market Government Platform Alibaba Rural Ecosystem
  • 7. New Agriculture Platform for agricultural production tools & technology Upgrade online and offline channels Upgrade customers’ experience Upgrade supply chain and products Platform for agricultural products Rural life service platform Big Data Ecosystem …… New Retail Business Accelerating New Agriculture & New Retail in food industry
  • 8. Through Alibaba’s merchant data system, Mr. Wang did a market analysis on product types and demands, which brought his business new development and growth: 1) Expanded product categories. 2) Built a warehouse to improve customer experience and lower management cost. 3) Updated marketing ability Results: Revenue increased by 10 times to RMB 500 million from 2012 to 2017. New Retail in Food Industry: Big Data Boosts e-Commerce Case
  • 9. New Retail in Food Industry: Cross-border E-commerce Case Summer of 2013 Cherries Sold: 168 metric tons Total Orders: 84,000+ From US to China within 72hrs
  • 10. New Agriculture: Rural Taobao covering 1/3 counties and 1/6 villages in China over the next three to five years. RMB 10 billion Program to build 1,000 county-level service centers 100,000 village-level service centers
  • 11. Rural Taobao: Leading E-Commerce Market in Rural China Rural Taobao Progress 29 Provinces 700 Counties 30,000 Villages Market Scale 30,000 Rural Taobao Partners 60,000 Assistants 14.6% Bachelor Degree 32% Associate Degree 30+ Logistics Partners 3,000+ Logistics Trucks Talent Infrastructure
  • 12. Marketing Consumer Goods to Rural Areas The three-links strategy: system link, merchandise link and service link. The strategy integrates Alibaba’s e-commerce ecosystem, allowing quality goods to enter rural markets efficiently so that villagers can enjoy the same consumption and service experience as urban residents.
  • 13. Marketing Agricultural Materials to Rural Areas Rural Taobao provides advanced equipment to improve the production and transportation in agriculture industry. Drones are available through Rural Taobao to offer large- scale pesticide spraying service to farmers.
  • 14. Marketing Agricultural Products to Urban Cities(1/2) It is estimated that 1,500 rural households in Tulufan’s Lukeqin, Tuokexun county, Bachu and Hamiyiwu county will benefit from the initiative in 2017.
  • 15. • Built a local warehouse of over 10,000 square meter in size by teaming up with Yanbian government • Provided state-approved authoritative testing report to ensure the quality of rice • 35 tonnes of rice sold out on the first day, with GMV exceeding 400,000 RMB Marketing Agricultural Products to Urban Cities(2/2)
  • 16. Rural Taobao provides public services such as online distance education ,video conversation for families, return-home training. Charity Case: Left-behind Children
  • 17. The two agreed on their intention to cooperate in the future on issues regarding woman and children and support for rural areas. Rural Taobao and the Food and Agriculture Organization of the United Nations have also agree to work further on poverty alleviation. Cooperation Opportunity with UN *Assistant Secretary-General of the United Nations and UN Women Deputy Executive Director Ms. Lakshmi Puri, along with Alibaba partner and President of Alibaba’s B2B business unit Ms. Dai Shan, spoke at the "SHE•ERA: 2017 Global Conference on Women and Entrepreneurship", an event organized by the Alibaba Group in Hangzhou on July 10.