Alibaba wsis presentation_22_may_08_v3

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  • 24/10/12 09:21
  • If I told you there was a Chinese company with a middle eastern name, started by a Chinese english teacher, and the company would one day have to battle it out with the world’s largest e-commerce company. What would you say the chances of success might be? Given I’m in a room full of some of the most successful entrepreneurs, I’m sure your answer would be, “we’d find a way to make it work” “ Snow ball’s chance in hell” or very likely?
  • 欧洲 SME 数据 http://ec.europa.eu/enterprise/entrepreneurship/facts_figures.htm 美国 SME 数据(见报告的第 18 页) http://www.sba.gov/advo/research/sb_econ2007.pdf
  • Are Developing Countries Ready? Three ITC Surveys A series of surveys conducted in preparation for the Executive Forum 2000 indicates that e-competent firms are the exception. The survey results, and the Executive Forum 2000 consultation, reveal that there has not been a concerted effort within the business community of most developing and transition economies either to acquire e-competency or to use the Internet as a tool to increase or, at the very least, maintain international competitiveness. This is particularly the case of the SME sector — the sector that, in the majority of developing countries, makes the greatest contribution to national export performance. Exporting SMEs – use of ICTs In one survey, ITC contacted 50 “connected” SMEs in South-East Asia, North Africa, the Middle East and eastern Europe. Each has a web site. The objective was to acquire their views on ICT as a business development tool and in so doing, gauge their e-trade readiness. The survey produced surprising results. It revealed that connectivity is seen as a valuable communication tool, but not as an essential aspect of competitiveness. The use of ICT was acknowledged as important to establishing a modern and innovative business culture within the enterprise but was regarded as having no, or minimal, direct impact on sales prospects or purchasing efficiencies. Few of the managers contacted considered web strategy an integral part of their overall business. Nor did they believe that the application of ICT would become a fundamental element of their long-term business development strategy. For the vast majority, the seamless e-transaction is a long way off because of perceived difficulties in introducing online financing and payment, and customs collection and taxation applications. Garment exporters – electronic purchasing practices A second survey of developing country SMEs focused on the use of the Internet to generate purchasing efficiencies. The survey covered garment exporters in Bangladesh, the Philippines and Sri Lanka who imported a significant amount of their fabric requirements. The survey confirmed that e-mail was the only application so far used by these enterprises. Most did not see a need to use the Internet to find new supply sources. None used the “request for quotation” facilities provided by Internet-based applications. None bought or managed international logistics over the Net. National trade promotion organizations A third survey of 51 developing and transition economy trade promotion or-ganizations showed uneven response to the demands of the digital economy. Less than half canvassed by ITC indicated a specific e-trade component in their national export development strategies. Among the countries that have an e-trade strategy, few have an integrated approach to ensuring that the right environment exists for e-trade growth and even fewer have established a comprehensive programme of support to the business sector.
  • Speed : immediate access to buyers and sellers from around the world – independent of their market Transparency : comparing offers on a common ground Global Reach and Knowledge Sharing : meeting local partners quickly, communities with experience of traders from around the world on online forums Little Risk : develops as an additional channel to existing distribution strategy 24/10/12 09:21
  • 24/10/12 09:21
  • 24/10/12 09:21
  • What are the Millennium Development Goals? The eight Millennium Development Goals (MDGs) – which range from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, all by the target date of 2015 – form a blueprint agreed to by all the world’s countries and all the world’s leading development institutions. They have galvanized unprecedented efforts to meet the needs of the world’s poorest.     "We will have time to reach the Millennium Development Goals – worldwide and in most, or even all, individual countries – but only if we break with business as usual. We cannot win overnight. Success will require sustained action across the entire decade between now and the deadline. It takes time to train the teachers, nurses and engineers; to build the roads, schools and hospitals; to grow the small and large businesses able to create the jobs and income needed. So we must start now. And we must more than double global development assistance over the next few years. Nothing less will help to achieve the Goals." United Nations Secretary-General  
  • 24/10/12 09:21
  • 24/10/12 09:21 SMEs are one of main drivers of China’s growing economy 2 trends in favour of us More moving on line and using online B2B platforms Increase by 5x from 2006-2012 Globalization Spending more marketing budget online Double of over 20% in 2012 of total marketing budget from 2006 4 inefficiencies in doing business for SMEs Lack of trust Lack of information Fragmentation of suppliers and buyers Lack of resource / experience Dominant position = solutions to solve SME inefficiencies With the right solutions in place, we have been able to grow our market place to be the largest online B2B marketplaces globally
  • 24/10/12 09:21
  • 24/10/12 09:21
  • Recognized by multiple reputable industry sources Forbes has recognized Alibaba as one of the best of the web for the last seven years and Alibaba has been recognized for its excellence as early as 2000 with reviews fro the Far Eastern Economic Review as the “Best Global B2B Marketplace” as well as being the subject of two HBS case studies Fortune Small Business listed Alibaba as one of the best sites for global entrepreneurs among a field of notable websites including the EIU, CIA’s World Fact Book and the US Dept of Commerce’s International Trade website
  • 24/10/12 09:21 Financial position of the group very strong Turned profit in 2003 Even with other businesses not generating signif revenue, we are still making a profit We focus on e-commerce Average age of people in company in 26
  • 24/10/12 09:21 http://www.alibaba.com/trade/servlet/page/static/success_story/tp_story/we_are_getting_more_orders I joined Alibaba as a free member in September of 2005. Amazingly, I got orders within five days from Europe after joining! I was really surprised to see such quick results with Alibaba. I decided to upgrade my membership and I began receiving more reliable inquires and orders. As a free member, I was getting about ten inquires a week. After joining TrustPass, I started getting about 20 per week. I finalized three deals, and all these customers paid for the orders in advance. These orders indicate a good sign of trust between buyers and my company. I believe that if you are updating your products and selling leads regularly, as well as replying to all of your inquires in timely manner, then you'll get the most out of your e-business efforts. I am using TradeManager every day because I can negotiate in real time without delay. Through my Trade Alert subscription, I can stay updated on current postings in Alibaba. Now, most of our customers are from Italy, France, China, America, Ireland and Spain. With Alibaba, we are worldwide!
  • 24/10/12 09:21 http://www.alibaba.com/trade/servlet/page/static/success_story/tp_story/80_of_our_business_comes_from_alibaba We live in a world of rapid globalization, where information is just on our finger tips. So, having a business platform that gets the attention of ever-demanding clients and customers, without having to attend a great number of international trade fairs, is a great help. 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. Because of Alibaba, our buyers can reach us easily through their preferred search portals with distance being just a few clicks away. We give our sincere thanks to Alibaba for getting key business factors in line and helping us expand our business horizons. 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.
  • 24/10/12 09:21 http://resources.alibaba.com/article/2 31339/Alibaba_com_Holds_Private_Sourcing_Event_for_Woolworths_Limited.htm Alibaba.com Holds Private Sourcing Event for Woolworths Limited Author: Admin Initiative connects big buyer with small and medium suppliers from China HONG KONG, November 30, 2007 – Alibaba.com (1688.HK), the world's number one online marketplace for international trade, organized a private sourcing event on November 15 for international retailer Woolworths Limited. Themed “Partnership and Prosperity with Woolworths Limited", the Woolworths China Sourcing Event was attended by over 100 suppliers from a wide range of industries, including fashion and apparel, footwear, toys, sports, plastic products, gardening, DIY, electrical appliances, electronics, gifts and homeware, stationery, holiday products and supermarket supplies.   Staged at the Landmark Hotel in Shenzhen, China, the Woolworths China Sourcing Event introduced the Australian retail giant to many new potential suppliers and provided an additional marketing channel for Alibaba.com’s Gold Supplier members, premium export-oriented suppliers from China and Hong Kong. Participating suppliers met with 13 buying representatives from Woolworths to discuss business opportunities in nine major product categories.   "The Woolworths China Sourcing Event was a great success," said Ian McDonald, General Manager of Global Sourcing, Woolworths Limited in Australia and New Zealand. “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."   "We appreciate the pre-event work and research the Alibaba team did to identify prospective suppliers for us," added Jerry Chan, Managing Director of Woolworths China / HK Procurement Ltd. "We are very happy with the end result and we look forward to collaborating on more events with Alibaba.com in the future."   "We are pleased to help connect quality suppliers with a well known international retailer like Woolworths," said Kenneth Liu, Vice President of Global Operations, Alibaba.com. "Alibaba.com operates an online marketplace but we also understand the need for face-to-face interaction among trading partners. Private sourcing events are one way to facilitate this. We also attend trade shows, run training seminars and hold networking events which bring together our members around the world."   The event was an initiative of Alibaba.com's Big Buyer Service team which caters specifically to big corporations with large scale procurement needs such as P&G, Home Depot and Woolworths. Alibaba.com provides big buyers with a wide range of services and user-friendly tools from supplier matching to direct sourcing, training in online sourcing and customized private sourcing events.   About Alibaba.com Alibaba.com is the world's number online marketplace for global and domestic China trade. We provide an efficient, trusted platform connecting small and medium buyers and suppliers from China and around the world. Our international marketplace (www.alibaba.com) focuses on global importers and exporters and our China marketplace (www.alibaba.com.cn) focuses on suppliers and buyers trading domestically in China. Together, our marketplaces form a community of more than 24 million registered users from over 200 countries and regions.   About 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. The company's major businesses include supermarkets, general merchandise stores and hotels as well as electronic and electrical appliance specialty stores.
  • 24/10/12 09:21 http://www.alibaba.com/trade/servlet/page/static/success_story/buyer_story/americas_fernando
  • 10/24/12 09:21
  • 24/10/12 09:21
  • Alibaba wsis presentation_22_may_08_v3

    1. 1. Empowering SMEs Worldwide:The Alibaba StoryBrian A. WongSenior DirectorInternational Business Development and MarketingWSIS follow-up and implementation:Action Line Facilitation meeting "E-business“May 2008
    2. 2. An Unlikely Story. . . Tea House Hangzhou, China
    3. 3. All About SMEs!  Big SME* market  In China : 42 million SMEs  In Europe: 23 million SMEs  In US: 22 million SMEs  Critical to global economy and trade  In China: 58% of GDP, 68% of import and export volume, 75% of employment  In Europe: over 50% of GDP, 60% of employment, over 100 million jobs  In US: over 50% of GDP, 67% of export volume, 67% of employment* SME means all employer firms, self-employment nonincorporated and incorporated.
    4. 4. The Importance of SMEs in DevelopingCountriesSMEs are the driving force in many economies… Engine for job creation; Positive role in poverty alleviation; Cover almost all (productive) sectors; Are a main source for new products; Diversify the economy and introduce flexibility
    5. 5. Challenges in Developing Countries forEcommerceBut are they fully utilizing the technological tools available toprosper in the global economy?  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. 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
    6. 6. A New Gateway to Global TradeThe advent of eMarketplaces has helped to address many ofthese issues. . . Challenges SolutionsLack of sales prospects or • Online market researchpurchasing efficiencies. • User forums/knowledge sharing • Robust global online company databaseLack of online payment, logistics, • On-Offline partnerships (introducingetc. 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 • Public-Private partnershipsupport (TPOs/TAs/IOs) to support e-commerce • Education campaign s (e-business champion event etc.) and trainings to target SMEs directly 6
    7. 7. E-Marketplaces: The Alibaba Approach. . . and Alibaba.com developed a particularly unique (yetsimple) model A Hangzhou Teahouse • 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” Jack Ma Chairman of Alibaba.com 7
    8. 8. Traditional Sourcing Work FlowIt addressed a key “pain point” for many buyers around theworld. . . Search/ Evaluate Negotiate Transact Discovery Average sourcing cycle: 3.3 – 4.2 months 52% of time spent searching for/identifying 20% of time spent on screening/sorting appropriate suppliers proposals 18% of time spent on RFQ development/ 10% of time spent on contract RFQ response negotiations Traditional Sources of Supplier Information Referral (colleagues, associates) Industry associations Trade shows Trade directories Industry magazines, trade journals Existing suppliers Source: The Aberdeen Group 8
    9. 9. eMarketplaces: a Window ofOpportunities for SMEs. . . and in the process helped empower SME suppliers allover the world The eMarketplace Value Proposition:  Low entry barrier  Reduce business costs and time, particularly search  Streamline supply- and export-distribution chains  Brand building using cost effective media eMarketplaces empower SMEs to become global players without the resources of a multi-national corporation
    10. 10. Aligned objectives within public-private partnershipAlibaba’s objective is consistent with the UN MillenniumDevelopment Goals (MDGs)Goal 8: Develop a Global Partnership for DevelopmentTarget 18: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications
    11. 11. Alibaba’s Vision 让天下没有难做的生意 Marketplace To Make It Easy To Do Business Anywhere 商人都要用阿里巴巴 Community To Be an Essential Partner to All BusinesspeopleLong Term Vision 建立一家持续发展 “ 102 年”的公司 To Build a Company that Lasts “102 Years” 11
    12. 12. SMEs Spend More Marketing DollarsOnline Growing SME Usage of Online B2B Marketplaces Online Share of SME Marketing Budget MM 45 25% 41.0 20.4% 36.3 20% 30.6 % 30 5.0 =4 15% R C AG 22.0 10.8% 16.0 10% 15 11.7 8.8 5% 5.4 3.1 2.1% 1.0 1.7 0 0% 2002 2004 2006 2008E 2010E 2012E 2002 2006 2012E Source: iResearch 12
    13. 13. Global network at your fingertipsA truly global network for importers and exporters of rawmaterials, component parts and finished goods Manufacturers Export e-marketplace Global Buyers Trading agents Manufacturers Import Trading agents e-marketplace Global Suppliers Retail shops 13
    14. 14. World’s No.1 Online B2B Marketplace for International & Domestic TradeAlibaba.com represents a phenomenon which is changing theway SMEs around the world conduct business Sellers Buyers  Typically  Across more SMEs than 200 International Marketplace International Marketplace countries  Ten to a few thousand 4.4 million registered users (1) 4.4 million registered users (1)  Companies employees of all sizes  5,000+  Diverse end product markets categories in 30+ industries China Marketplace China Marketplace 23.2 million registered users (1) 23.2 million registered users (1)Note:1. Company data as of Dec 31, 2007
    15. 15. A Premier Global Brand Recognition by Global Thought Leaders In a Different League from Its Peers… US Entrepreneur Magazine “Best sites for global entrepreneurs” “Best Website for Entrepreneurs” June 2004 Forbes Magazine “Best of the Web” 2000 - 2006  Business for Diplomatic Action  CIA’s World Fact Book Far Eastern  Economist Intelligence Unit Economic Review  “Best Global B2B The World Bank’s Doing Business HBS Case Studies Marketplace” Database 2000 and 2001 2000  U.S. Department of Commerce’s International Trade Administration •15
    16. 16. Alibaba.com’s International Marketplace With over 4.4 million registered members from 200 countries & regions, it’s truly a global community UK 6% EU 9% India China 7% 8% Canada 3% US 18% South East Asia 13% South America 3% Middle East 4% Australia 3%16
    17. 17. Integrated eCommerce Platform Search Alibaba China - B2B Taobao – C2C & B2C Shop Overseas Buyers/ImportersAlibaba International - B2B Consumers Choose Transact Exporters China Wholesalers Retailers/ Power Sellers Pay China Wholesalers
    18. 18. One Stop Services for SME Exporters www.alibaba.com www.alibaba.com.cn(International Marketplace) (China Marketplace) Export to Export Globe to China SMEs Export to Japan New www.alibaba.co.jp (Japan Marketplace)
    19. 19. Alibaba.com partnershipsAlibaba.com cooperates with leading organizations all over theworld. . .and is looking for more partners including public-private partnership!
    20. 20. Success Story: Pakistan Seller “With Alibaba, we are worldwide!" Member: Mr. Hammad Kanwal Company: FASHIONS CARE Type: Manufacturer Size: 11-50 people Country: [Pakistan] Products: T-shirts, polo shirts, denim jeans, cotton gloves • 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. 20
    21. 21. Success Story: Sellers(TrustPass members) “80% of Our Business Comes From Alibaba! 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 dont get enquiries routed through Alibaba. Alibabas 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. Member: Mr. Moola Ram Potalia Company: TOWN AART Country: [India] 21
    22. 22. Success Story: Big BuyersAlibaba.com Holds Private Sourcing Event for Woolworths Limited  “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.“ Woolworths Limited is the largest retailer in Australia, serving customers across the nation for over 80 years. Woolworths is one of Australias top companies by market capitalization, with sales reaching A$42.5 billion in the 2006/2007 financial year. 22
    23. 23. Success Story: SME Buyers "I have also posted buy leads attracting quick and good quality responses from the suppliers."  "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 its 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." Customer: Mr Fernando Lomely Company: Genesis Ferran S.A. De C.V. Country: Mexico 23
    24. 24. Roadshow video “I’m an Alibaba member!” – 2mins•10/24/12 09:21 •24
    25. 25. Thank you!Brian@alibaba-inc.com 25

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