Alibaba is looking to expand its business in India as online retail sales are growing rapidly. India's online retail is estimated to reach $45 billion in the next 5 years. Alibaba has over 367 million active users globally and is ranked 174th in the Forbes largest companies list. To capture the Indian market, Alibaba is considering launching an e-commerce app and website targeting users in tier 2 and 3 cities. Focusing on these smaller cities could benefit Alibaba as internet usage is rising and discretionary spending is expected to increase. Upcoming festivals, sports events and trade shows also provide opportunities for marketing.
2. Alibaba The Growing family
Current position :
valuation
• Alibaba s valuation is roughly
around 60 bn $.
rank
• Ranked 174th in the forbes world
‘s biggest companies ranking .
Users
• Alibaba has 367 million active
users
4. Why India is important ?
Exact
condition
• As of now the % of total retail sales from internet is .9% but is
expected to grow 1.9% in the very next 2 yrs
Retail
ecommerce
sales
• Retail e-commerce sales in India have grown tremendously from
2.3 billion U.S. dollars in 2012 to an estimated 17.5 billion U.S.
dollars, representing an almost eight-fold growth.
Indian
• According to Nomura’s internet India report in July , Indian e-
commerce is estimated to reach 45 bn $ in next 5 yrs .
5. Digital Buyer penetration to grow in
India
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
2014 2015 2016 2017 2018 2019
6. • Per capita income at current prices during 2014-15 was 88,533 rs.
• The internet penetration is given by :
• Nov 17, 2015 - The number of Internet users in India is expected to reach 402 million by
December2015, registering a growth of 49 per cent over last year.
• And last but not least the Modi led government which announced 100 percent FDI in ecommerce
on march 29th 2016 and is committed for the ease of doing business in India is definitely a plus
point for alibaba .
year Internet user Penetration
%
Total
population
2016 462,124,989 34.80% 132,680,1576
2015 354,114,747 27% 131,105,0527
7. From where to start
• In India Still the companies are inveigling customers by keeping the price low and as in Alibaba we have
that leverage over others due to low price in china and ability to invest money, we can any day start with
Alibaba in B2C also no company till now have come up with the vision to connect the people especially
the women in tier 2 and tier 3 cities who still play important role in shopping even in today s world so
Alibaba should come up with more user friendly, segment focused platform in order to capture that
segment .
what Alibaba can do ?
• Coming up with the app along with the website which should be extremely user friendly and if anyone
wants to order something he or she should get the option to write it on the app like making list or he or
she can upload the list with the jpeg/jpg format then person will get the possible items on the app and
then the procedure is same for delivering because in tier 2 or 3 cities people nowadays have become
more brand conscious.
8. Why focusing tier 2 and tier 3 cities?
• According to Assocham study the high internet penetration across tier-II and tier-III
cities along with high disposable income shall lead to approx 100 million transactions
on the Internet by 2020. As a result, the luxury consumption is going to increase
manifold in the country. So focusing more will benefit us in long run .
Clearly this target has all the potential
9. Why pro mobile is better ?
•India has mobile internet user base of 306 million as of December 2015. As per a report
released by Internet and Mobile Association of India (IMAI) and market research firm IMRB
and penetration of mobile internet was 23 % according to the same sources and why
women are also important is being shown with this diagram
10. Also even in 2012 the picture was that
and clearly the conditioned has
improved a lot ….
12. If Alibaba wants to start from the very
next day then :-
Strength
Ability to invest which will keep the price lower and
Indians are more prone to low prices .
Weakness
Little late entry as there are already 4-5 big market
players in India.
Threats
Companies are already investing huge on advertising
like flipkart 50 cr , Amazon 70 cr and ask me 300 cr so
the companies are trying to capture market through
huge advertisement also there are 200 ecommerce
startups where 60 percent are horizontal and 40
percent are vertical so in order to save their market
share from Alibaba they can expand this budget
Opportunities
Explained in the next slide .
ALIBABA
13. Opportunities for Us
Festivals(most of the sales are done in festival
season and India has 24 national, religious and
seasonal festivals so a great opportunity. Some
very important are Diwali ,Holi,Eid ,Baisakhi etc.
Social media promotion where India has
112 million fb users and 22 million
active twitter users so it gives
opportunity for less expensive
marketing
Sports events such as
IPL, Indian table tennis
league , pro kabbaddi ,
martial art camp,
national games goa ,
south Asian games,
junior hockey world cup .
Bollywood Award functions
such as IIFA, Stardust , zee
cine awards ,national film
awards , filmfare ,Big star
entertainment awards
,screen awards.
Tradeshows and exhibition in which India is going
to have more then 200 trade shows this year and
next year which can help us in active marketing
http://www.eventseye.com/fairs/c1_trade-
shows_india_2.html
Municipal corporation functions
if the ecommerce company
wants to capture the tier 2 and
tier 3 market then still the less
expensive but effective way of
marketing is through these
where in short period most of
the people become aware of
your site .
14. Upcoming most important events
• AFC U-16
championship(15
Sep -2 Oct 2016 )
• Pro Kabbadi
League(July –August
2016 )
• IPL ( next is in April
8 to May 29 , 2017)
•India International Trade
Fair(14-27 nov,2016)
•IHGF Delhi Fair(14-18
oct,2016)
•Bangalore Fashion
Week(28-31 july,2016)
•India International
Garment Fair(18 - 20 Jul
2016)
•India International Mega
Trade Fair-Kolkata(16 -
26 Dec 2016)
• IIFA Madrid
2016 (June 23-26)
• Big star
entertainment
awards (December
2016)
• Filmfare Awards
(January 2017)
• Guild awards
(January 2017)
15. The reason I made the project
• Since after joining Alibaba on may 1st as an intern I fell in love with this
company . The 6 basic principles of integrity, customer first, passion
,commitment ,team work and embrace change are something which I
want to embrace ,learn and follow in my life and I believe that is possible
only in this company . I also firmly believe that my goal is towards
contributing more to the company in future .
16. Reason of this love
culture with in this organization
nurtures one’s thought process to
be more open and innovative .
The opportunity to work with the
brilliant people.
The motto of making business
everywhere easy shows the
inclusive and more of customer
dedicated approach which is hard
to find in other company.
Exposure one receives working with
the global company which is having
presence in more then 150+
countries .
17. Why I belong to alibaba ?
Exposure to world
I have travelled 8 countries at the age
of 22 and I believe I am the global
citizen and have an exposure to how
to deal with the customers outside my
own country .
Leadership
I had been a student council member in
my college and through out my school
headed my class as a monitor that shows
my leadership qualities which is there in
every employee of Alibaba i.e. To take
the responsibilities and lead .
Commitment
I have always showed my commitment
to every given opportunity in hand
whether it would be in college towards
studies and student council or it will
be in my daily life which makes me
adhering to the one of Alibaba s 6
principles .
18. Where can I work
Business
development
• I can work in
business
development as I
designed a
potential revenue
model for the NGO
during my winter
internship which
helped the NGO in
identifying the new
potential revenue
sources.
Marketing
• I can work in
marketing by
helping Alibaba in
reaching to the
distant villages ,
small towns etc by
involving in active
marketing through
different mediums .
Also as I like selling
so I can work in
sales .
Volunteer
• Even if I am not
suitable for these
two jobs , I would
be ok to work as a
volunteer to each
department by
fulfilling my desire
to work in this
company.