To celebrate its entry on the European market, Alibaba, the Chinese giant of e-commerce and Equancy Shanghai have collaborated to offer its clients a sharp analyze of Chinese e-commerce during a dynamic breakfast. We are glad to welcome Aline Guo-Haefele, Qunkai Liu and Morgan Bonnard who will adress four main topics: 1. Local stakes & specificities: key figures about a Chinese society based on mobiles, and the multiplicity of its digital platforms 2. Particularities of the Chinese consumers 3. Winning strategies of European companies in China, including Axa’s testimony 4. Focus on Alibaba’s ambitions in Europe

1. E-COMMERCE IN CHINA
Decoding & opportunities
2016, September 28th

2. AGENDA
ALIBABA DIGITAL
ECOSYSTEM
CHINESE CONSUMER
KEY E-COMERCE
DRIVERS
PARTNERSHIP
AXA GROUP &
ALIBABA
ALIBABA CLOUD
HOW TO ENTER
CHINA E-COMMERCE?
THE 1ST
ECOMMERCE
MARKET IN THE
WORLD

3. 3
EQUANCY SHANGHAI
We are a leading global consulting and innovation firm, specialized in marketing and
communication. We go from strategy to implementation to boost your business

4. 4
FOUR OFFICES, ONE OPERATIONAL COMPANY
SHANGHAI
15 people
GROWTH STRATEGY
BRANDING
DIGITAL
PARIS
120 people
GROWTH STRATEGIES
DIGITAL STRATEGY
DATA, ANALYTICS &
SOLUTIONS
BRANDING
CORPORATE
COMMUNICATION
INNOVATION
CUSTOMER MARKETING
NEW YORK
15 people
BRANDING
INNOVATION
MUMBAI
3 people
DIGITAL STRATEGY
ANALYTICS

5. 5
OUR SHANGHAI OFFER
DIGITAL
GROWTH
MARKETING
BRANDING

6. 6
OUR CLIENTS

7. THE 1st ECOMMERCE MARKET IN THE WORLD

8. China’s economic dream may be ending…

9. 9
But...
Source: Internet Live Stats / eMarketer, Worldwide Retail Ecommerce Sales Will Reach $1.915 Trillion This Year, August 2016
of world
Internet users
1/5
of world
e-commerce sales
1/2

10. 10
…and we think this is just the beginning
+176%
USA Sales Growth
from 2012 to 2016
+434%
China Sales Growth
from 2012 to 2016
225 263 298
397
525
210
297
473
911
1568
2012 2013 2014 2016 2018
USA China
Retail ecommerce sales in China & US compared
(in billion US $)
Source: 2014-2018: Statista, Retail ecommerce in China, USA and France

11. How China became
the world’s ecommerce king?

12. Consumers played a central role in the development of the e-commerce
BEST DEAL
Cautious consumers always
looking for the best deal
WORD OF MOUTH
Supported by eager consumers
to share on social media
LOW AVAILABILITY
Underdeveloped retail
infrastructures in lower tier
cities and rural areas
CONVENIENCE
Chinese delivery system is
deregulated thus very
efficient and fast
EARLY ADOPTERS
NO BARRIER TO BUYING ONLINE
Curious consumers willing to try new brands
and products
QUALITY
Willing to buy imported
products as quality guarantee

13. 13
By being on the quest to get value
PREMIUMIZATION EXPERIENCIAL LOYALTY
Source: McKinsey, What’s driving the Chinese consumer, 2016

14. 14
And being completely digitalized
==
Source: eMarketer, Worldwide Internet & Mobile Users, 2015
563
million
smartphone
users in China

15. O2O is now disrupting the way business is done
15
ONLINE OFFLINE
2
NEW O2O
CONSUMER
HABITS
NEW DIGITAL
ECOSYSTEM
DEVELOPMENT
E-COMMERCE
MOBILE
APPS
OFFLINE
RETAILS
SOCIAL
MEDIA
1
2

16. 16
The power of WeChat
Source: McKinsey, How savvy, social shoppers are transforming chinese ecommerce, 2016

17. ALIBABA DIGITAL ECOSYSTEM

18. 18
Alibaba, the leader of Chinese E-commerce
Retail ecommerce GMV in US and China
in 2015 in billion USD
Alibaba sales alone
exceeded that of
USA in 2015
343
672
476
US CHINA ALIBABA
Source: Statista, Alibaba

19. 19
« In America, there’s Walmart, there’s
Kmart. All retailers are everywhere so e-commerce
is just like a dessert. In China,
e-commerce is the main course. »
Jack Ma - Apec - 2015

20. 20
Alibaba eco-system
THE LINK TO WATCH THE VIDEO ONLINE
https://www.youtube.com/watch?v=CtXxAA5Hg60

21. 21
Alibaba, the world largest e-commerce marketplace
434 M
42 M
1 bn
$485bn
+10 M
GMV
(full fiscal year 2016)
PACKAGES DAILY
ACTIVE SELLERS
ACTIVE BUYERS
(427M mobile)
PRODUCTS & SERVICES LISTINGS
On March 21st, 2016…
RMB 3 trillion milestone

22. 22
China B2C market penetration
Tmall is Asia’s
largest B2C site
61,4%
Tmall + Taobao
86% on Mobile
86%

23. 23
Single Day: the largest shopping festival in the world
$14.4 bn GMV in 1 day
70% through mobile
140,000 transactions per
second during the high
moment
16,000 international brands
(33%)
$2 bn in 8 minutes
467 M deliveries

24. 24
Globalization strategy
New embassies all over the world
to help local SMEs to sell to China
Over the next decades we plan to help tens of
millions of global merchants sell internationally

25. 25
Tmall opportunities
B2C
B2C
Cross-border

26. 26
Online flagship store
with a real
consumer experience

27. 27
Maserati Tmall page

28. 28
International brand flagship store on Tmall

29. 29
French brand flagship store on Tmall

30. 30
Tmall Global
TO DIRECTLY ENTER CHINA’S
ONLINE RETAIL MARKET
Overseas merchants can join
Tmall Global using the business
license of their home country
2014
Cross-borderCross-border

31. Purchasing power of Chinese consumers
216
280
364
480
624
1000
2013 2014 2015 2016 2017 2018
*in RMB billion
Source: Nilson
Cross-border Spending
by Chinese Shoppers
x 5
33

32. International Brand Flagship Stores on Tmall Global
34

33. Marketing on the World’s largest billboard
36

34. 34
Success case on Tmall Global: Costco
40 million RMB
in sales in first month
30 tons of mixed nuts and dried cranberries were shipped
through bonded wareouse logistics model during 11:11

35. CHINESE CONSUMER KEY E-COMMERCE DRIVERS

36. 36
Video consumer
THE LINK TO WATCH THE VIDEO ONLINE
http://ar.alibabagroup.com/2015/china-context/index.html

37. PARTNERSHIP AXA GROUP & ALIBABA

38. ALIBABA CLOUD

39. Alibaba Cloud Key Figures
Since 2009…
No.1 Public Cloud vendor in Greater China
No.3 worldwide by 2016 Q1
over 2.3 million customers…
…including over 500,000 paying customers
3000+ employees o/w 80% developers
launched
22
new products
12
in big
data
612
new features
& services
World-class Cloud Computing Business
2016 Q1
FY 2016
YoY growth
175%
YoY growth
138%
Revenue
RMB 1,066 M
Revenue exceeds
RMB 3 Bln
106%
128% 126%
175%
2015 Q2 2015 Q3 2015 Q4 2016 Q1
Série 1
Triple-digit growth for 4 quarters
42

40. 40
Alibaba Cloud Services Portfolio
ODPS
ECS SLB RDS OSSOTSOCS CDN
CloudShield CloudWatchDPC ONS SLS OpenSearch
Hangzhou Qingdao Beijing ShenZhen HongKong US West
ACE
~230 CDN Node
ADS
Elastic Compute Database
OAS
Security & AdminLarge scale compute
Storage & CDN
Extensive
Services
Basic
services
Infrastructure
Industry
Solutions
eCom. Fin.Gov. …Games Mobile IoTMedia
ESS DRDS
PTSCDP
Application Services
VPC
Singapore

41. 41
Global footprints
Global coverage
Hangzhou, Qingdao, Shenzhen, Beijing, Shanghai
Hong Kong, US West, US East, Singapore.
Coming soon: Europe, Japan, Dubai, Australia, India, …
CDN Network with Best Quality
500+ CDN nodes throughout China, 100+ overseas CDN nodes
and a total bandwidth of 10 Tbps.
BGP Access for Multiple Carriers
Where ever your uses are, they will enjoy a same high-quality
experience when accessing your services provisioned on
Alibaba Cloud.
East Coast
Opened
West Coast
Coming soon
Australia
Europe
Middle East
India
Singapore
Hong Kong
South China
North China
East China
Alibaba
Cloud’s
Global Data
Centers

42. 42
Europe GTM Strategy
SMB and Startup
will be the focus
Ecosystem
(marketplace) and
white label sales
Online marketing
to drive the brand
awareness
Build Flagship cases

43. 43
Growing Number of Partners…

44. 44
China Connect
THE LINK TO WATCH THE VIDEO ONLINE
https://intl.aliyun.com/chinaconnect

45. HOW TO ENTER CHINA E-COMMERCE?

46. How to enter China e-commerce?
You need to be everywhere
Every digital touch point, from SNS to Ecommerce platforms, is
visited during the Chinese consumer journey. So you need to
be present at every step to meet your customer.
du
Go through the B.A.T. is inevitable
Baidu – Alibaba – Tencent. They rule the digital landscape in
China. It is a must to be at least in each of their platforms to
be considered by the Chinese online users.
Existing digital strategies cannot be replicated
The Chinese ecommerce ecosystem is unique in the world.
Hence, a Chinese specific strategy has to be created.
50

47. How to enter China e-commerce?
CONSIDER THE MUTIPLICITY OF PLATFORMS IN ORDER TO CONNECT THEM
MATCHING CONSUMER SPECIFICITIES
BE READY TO RETHINK YOUR BUSINESS MODEL WITH NEW PRODUCTS
& SERVICES
49

48. Q&A

49. THANK YOU