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Alibaba Group: make a better rural China

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"https://www.antfin.com/index.htm?locale=en_US

E-commerce is rapidly becoming an important alternative marketing channel for smallholders' production in rural areas. The innovative Ant Financial programme is designed to address working capital and short-term investment needs in agribusiness carrried out by the relatively poor rural population."

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Alibaba Group: make a better rural China

  1. 1. Janice Chen
  2. 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. 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. 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. 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. 6. Rural Taobao Taobao Village Core 2: Public entrepreneurship innovation Core 1: E-commerce service system Market Government Platform Alibaba Rural Ecosystem
  7. 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. 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. 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. 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. 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. 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. 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. 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. 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. 16. Rural Taobao provides public services such as online distance education ,video conversation for families, return-home training. Charity Case: Left-behind Children
  17. 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.
  18. 18. THANK YOU

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