How the B2B e-commerce is changing? What is the role of alibaba.com ? How we will make business in the future - in the presentation of Cuneyt Erpolat - country manager Alibaba.com Turkey.

1. Cüneyt Erpolat
Alibaba.com
Country Manager - Turkey

2. What IsAlibaba.com?
• Companies of all sizes
• Entrepreneurs, e-retailers,
buying agents, MNCs, etc.
• Diverse end markets
• Typically small businesses
• Ten to a few thousand employees
• Thousands of product categories
in 40+ industries
A global network for buyers and suppliers of raw
materials, component parts and finished goods
Global BuyersGlobal Suppliers

3. Alibaba.com Story

4. TheAlibaba Story
18 years later, Alibaba Group has become a diverse e-
commerce company with a family of Internet-based
businesses
Employees: More than 55,000
Offices: Head office in Hangzhou plus
more than 70 offices in mainland China,
Hong Kong, Taiwan, India, Singapore,
U.S. and U.K.
1999 2017
Employees: 18
Office: Jack Ma’s Hangzhou apartment

6. New World Norms

7. What Kind of a World do We Live in ?

8. What Kind of a World do We Live in ?

10. Doing the exact same thing over and over
again but expect to get a different result
Will it ever work ?

11. Key Word ?

12. WE
NEED TO START
CHANGING
THE WAY
WE DO
BUSINESS
TODAY

13. Eg: World is Going Mobile

14. The most pressing challenges for SMEs to survive
Declining prospects
/ orders
Soaring prices
of raw
materials
Inflation
Affected
supply
chain
Continuous
changes in
new markets

15. 65% of online SMEs have
confidence and capability to
survive from uncertainties, while
only 10% for offline SMEs.
Surrounded by great uncertainties,
successful rate for SMEs who do business
on ecommerce online platforms
is 5 times more
than those
offline.
I-research report shows:
E-commerce offers advantages
that include the ability to expand
into global markets with a
minimum of expense.

16. B2B Numbers

17. 2013
Global E-Trade Volume, Trillion USD Dollars
Source: Frost & Sullivan, Emarketer
§ Global E-Trade volume
doubled up between in
2016 when compared
with 2013.
Global E-Trade Volume
1,08
1,32
1,59
1,95
2014 2015 2016

18. 6,70
3,20
9,90
+109%
B2B ToplamB2C
§ On year 2020 B2B
volume is expected to
be nearly two times of
B2C volume
2020 B2B, B2C Volume Projection (Trillion USD)
18
Kaynak: Frost & Sullivan
Global E-Trade Volume (2020 Projection)

19. 19
Power of ecommerce

20. TOP Global E Trade Volumes ( 2016 )
Top 5 Countries for E-Trade volume
1 Trill USD
396 Bill USD
166 Bill USD
124 Bill USD
107 Bill USD

21. Source: Information Industry
Association 2015 Report, EIU,
Euromonitor, Statista, IMF,
Global Web Index Q1 2016
Online retail/
Total Retail
Internet
Penetration
England %12,6 %92
USA %9,2 %88
France %6,8 %86
Japan %7,2 %91
Spain %3,3 %80
Italy %2,6 %65
China %9,7 %51
Poland %6,8 %71
Brazil %4,1 %64
Russia %3,8 %71
India %1,9 %27
Turkey %2,5 %62
Germany %7,9 %88
E-commerce comparison
Developed
countries’
average
7,1%
Online
Shopping
%77
%66
%64
%55
%57
%49
%44
%53
%44
%48
%23
%39
%74
GDP per
Capita (PPP)
$ 41,2 K
$ 55,8 K
$ 41,2 K
$ 38,1 K
$ 34,8 K
$ 35,7 K
$ 14,1 K
$ 26,5 K
$ 15,6 K
$ 25,4 K
$ 6,2 K
$ 20,4 K
$ 46,9 K
Developing
countries’
average
5,1%
... Developed countries
... Developing countries
8
E Trade Penetration

22. -2
0
2
4
6
8
10
12
14
16
18
20
22
24
26
1 2 3 4 5 6 7 8 9 10 11 12 13
Russia
JapanItaly
India
China
Germany
Poland
Brazil
France
United Kingdom
Turkey
United States
Spain
Source: World Bank, Statistai
1 2
E-commerce comparison, 2015
Developing
countries’ average
5,1%
Developed
countries’ average
7,1%
CAGRofGDP(2006-2015),%
Developed countries
Developing countries
Online retail / total retail, %
§ Governments of
developing
countries such as
China, Russia and
India are supporting
e-commerce so
these countries are
rapidly closing or
passing developed
countries (China)
9
E Trade Penetration

23. The Future = Ecosystem

24. • Large scale game
• Different dynamics than B2C
• Need government involment for rapid growth
• Very dependent on international and local
political issues
• Needs to be supported with an ecosystem
What is different in B2B?

25. Source: TİM, TUİK, Istituto Nazionale di Statistica
Number of Exporters, 2016
514 Bill $
142.5 Bill $
Export Volume, 2016 (USD $)
2,13
Export/company
Bill $
2,6379,80
Population
Million
60,80
195.000
67.000
Direct correlation between no of exporters and export volume
No of Exporters vs Export Volume
-%23 +%20

26. Logistics Delivered
Tax Refund FX
Negotiation
Manufacturing
and Stocking
General Cross-Border Trade Flow

27. Money
Cargo
Core problems during trading process
Trust
Core Problems-All about Trust
u Buyers are worried to make
advanced payment but not
receiving their goods；
u Suppliers are worried that they
would not be able to receive
payment for the goods supplied；
u Suppliers are worried about risks
involved in soft clauses and issuing
banks；
u ……

28. Existing Solutions
p Guarantee for
advanced
payment？
p Insurance
p Financial
Protection &
Management
p Letter of
Credit
p CollectionBank
Insurance
Solution
Bank
Goods
before
Payment
Simultaneous
Transfer of Goods
& Payment
Payment
before
Goods

29. New Landscape for Cross Border Trade
Internetization
2 Goods before
Payment：
Policy Loans
3 Letter of Credit：
Paperless Form
4
Documents：
Digitalization,
Internalization
Primarily based on TA, ECL
to assist buyer’s issues to
be settled in place within
one step
Based on Internet Insurance + Financial Method
Solve Supplier’s Financial and Risk Issues
Sale on Credit is no longer a barrier for Suppliers
Via paperless letter of credit method
Enable clients who cannot understand the
letter of credit to also use it conveniently
Receive financial support smoothly
All cross border documents to attain
digitalization
SMEs to receive all insurances,
financing
and settlement services effortlessly
through
the Internet!
1 Payment
before Goods：
TA＋ECL
WORLD
TRADE

30. Alibaba Group Ecosystem

31. International Trade: No Longer
Just the Realm of Big Corporations
Lack of confidence in doing
international trade
► On- and offline partnerships (with
tradeshow organizers, trade associations,
government bodies, big buyers, etc.)
► Education materials, seminars, etc.
Lack of foreign market
knowledge / connections
► Active trading community
► Online market research tools
► User forums / knowledge sharing
► Robust global online company database
Challenges Solutions
Online marketplaces can enable small businesses
to overcome a number of barriers to international trade
Limited capital and resources ► 24 x 7 product showcase and global reach
► Highly efficient online marketing tools
► Low-cost communication tools

32. A Solution to Export Problems of SMEs
One Touch
Shenzhen OneTouch Business Service Ltd.
(OneTouch in short), is a wholly owned
subsidiary company of Alibaba Group,
serving as the first and leading online platform
providing professional import and export
BPO (business process outsourcing)
services to China’s small and medium-
sized cross border trade enterprises.
OneTouch has been the No.1 import and
export BPO service platform in China by
consolidating scattered service resources of
different sorts for cross border trade and
financing to provide professional services
including customs clearance, logistics and
financing services
FY2016
$15+ Billion
FY2015
$6+ Billion

33. The more suppliers use OneTouch,
the more values we can provide for
them. Because we can be more
powerful to impact regulations.
Customs
Taxation
Inspection
Banks
Logistics
FX
Onetouch
SME
One Touch Model
Suppliers can focus on their core
competence，such as finding orders
and manufacturing.
Business Model and Success factors
Integrated BPO services make export
and import more efficiently and with
lower cost.
All trade data of suppliers and buyers
can generate more credit which brings
more orders.
Financing
Clearance
Taxation
Logistics
FX Administration
Entry-exit
Inspection

34. • World needs trained e commerce people
• Ecosystem can not be complete without e commerce
trained and minded people to become;
• Entrepreneurs
• E commerce professionals
• This is a long term goal which needs time and resources
• Both needs Universities and Private institutions
• Key success factor for future of e commerce
Key Ingredient : Trained Work Force

35. GET Project

36. GET Project