E-power your business in China

E-power  your  business   in  China  Maggie  Zhou  Agenda Agenda China E-­‐commerce Landscape
About Alibaba Group
Introduc9on Of Tmall & Tmall Global
Appendix
China Internet User Landscape China’s online popula9on is growing rapidly and reached 668 million as of July 2015, of which 593 million are using mobile, and over half are shopping online Internet Usage in China 1000 Users, Millions 900 800 700 600 500 36% 485 38% 40% 513 537 42% 564 60% 47% 48% 49% 44% 46% 617 632 648 667 590 Urban vs. Rural PenetraBon Rates 50% 40% 30% 400 20% 300 200 10% 100 0 2011.6 2011.12 2012.6 2012.12 2013.6 2013.12 2014.6 2014.12 2015.6 Users Penetra9on rate 0% Source: China Internet Watch, July 2015 Rural  27.90% Urban  72.10% China: Largest E-­‐Retail Market in the World GMV of China online shopping market 2011-­‐2018 10,000 51.3% 59.4% 48.7% 8,000 40.5% 30.5% 22.0% 6,000 GMV of online shopping (bn RMB) 4,000 % growth rate 2,000 0 2011 2012 2013 2014 2015e 2016e 2017e 2018e Source: iResearch March 2015 China: Rising of Mobile Shopping China has world’s largest mobile Internet user base with 557 million users as of Dec 2015 This convenience in Internet access is expected to drive higher online shopper engagement. Mobile commerce is growing rapidly in China. 5000 China Mobile Commerce GMV (RMB Billions) 4000 3,728.4 1,808.6 2000 0 4,504.0 2,835.2 3000 1000 China Mobile EC Market Share by GMV Alibaba (Tmall + Taobao) 86.2%  930.0 274.0 11.7 67.0 2011 2012 2013 2014 2015e 2016e 2017e 2018e Ali (Tmall+Taobao) JD VIPshop Suning Jumei Yihaodian Gomei Amazon.cn Dangdang Source: iResearch March 2015, CNNIC January 2015 Alibaba Confiden9al, not to be reproduced or published without the express wri_en consent of Alibaba Group. China Outbound Tourism 120  million  visitors   12%  year  over  year  increase  2015 Outbound Visitors 104.5  billion  US  dollars  16.7  yoy  increase  New  Categories  Previously  consumers  would  go  overseas  to  purchase  luxury  items  and  infant  food,  but  now  are  buying  items  for  their  every  day  lives  Agenda Agenda China E-­‐commerce Landscape
About Alibaba Group
Introduc9on Of Tmall & Tmall Global
Appendix
Alibaba Group Mission and Vision Mission To make it easy to do business anywhere We believe the Internet can level the playing field, enabling small enterprises to leverage innova9on and technology to grow and compete in domes9c and global economies. Vision Meet @ Alibaba. We enable millions of commercial and social interac9ons among our users, between consumers and merchants, and among businesses every day. Work @ Alibaba. We empower our customers with the fundamental infrastructure for commerce and data technology, so that they can build businesses and create value that can be shared among our ecosystem par9cipants. Live @ Alibaba. We strive to expand our products and services to become central to the everyday lives of our customers. 102 Years. For a company that was founded in 1999, las9ng at least 102 years means we will have spanned three centuries. Alibaba Confiden9al, not to be reproduced or published without the express wri_en consent of Alibaba Group. Key Milestones  Alibaba  Group founded in Jack Ma’s apartment; Alibaba.com and 1688.com (then Alibaba.com.cn) Aliwangwang instant messenger launched on Taobao; Alipay launched 2004 1999 2003 Online shopping website Taobao Marketplace launched Brands and retail plagorm Tmall.com launched to complement Taobao Marketplace 2008 2007 Online marke9ng technology plagorm Alimama launched; Taobao Marketplace starts to mone9ze Online group buying marketplace Juhuasuan and global consumer marketplace AliExpress launched; Mobile Taobao App introduced 2010 2009 Alibaba Cloud Compu9ng founded in conjunc9on with Alibaba Group’s 10th anniversary celebra9on Operator of a logis9cs informa9on plagorm Cainiao Supply Chain Management Co., Ltd. launched 2013
2013
Singles Day promo9on recorded GMV se_led through Alipay of RMB36.2B (US$5.8B) Alibaba Confiden9al, not to be reproduced or published without the express wri_en consent of Alibaba Group. Cross border eCommerce plagorm Tmall Global launched 2014
2015
Singles day smashes previous records, generates $14.3bn in 24 hours; Alipay sets record for most transac9ons per second Alibaba Group Eco-­‐system Today Tmall TV box Weibo Amap UC Xiami music Brand Momo Consumer $ PC and Mobile transacBon plaaorm Data Tech Ali cloud compuBng Team OS Alibaba  Group  Sales  Channels  Alibaba.com B2B 1688.com Alibaba Group Tmall Tmall Global B2C Ali Express Juhuasuan B2B Sales Distribu9on and wholesale Sell from within China Sell to Chinese consumers from overseas Sell from China to overseas Group buying plagorm Payment se_led via Alipay and Alipay Global Agenda Agenda China E-­‐commerce Landscape
About Alibaba Group
IntroducBon Of Tmall & Tmall Global
Appendix
Tmall and Tmall Global  Tmall.com is China’s premier online retail Launched in Feb 2014, Tmall Global is a cross-­‐
marketplace plagorm enabling businesses border e-­‐commerce plaaorm enabling overseas to connect and sell directly to consumers . merchants to enter China’s online retail market. Who  are  our  customers?  Tmall Global High-­‐end, direct import model Consumers willing to spend more for premium goods Tmall Large, established brands sell directly to the Chinese consumer; Nearly 100,000 brands Top category: Apparel Taobao (C2C) “Nothing you can’t find, only things you can’t imagine” Low-­‐price, variety, nearly 1 billion product lis9ngs Top 10 most visited sites in the world Alibaba Group Consumer Why buy from overseas? •  Goods unavailable domes9cally •  Higher quality available overseas •  Lower price available overseas Not just for luxury anymore: •  For years, shopping for imports was associated with luxury goods •  Now, Chinese consumers turn abroad for everything from toothpaste to supplements to homeware MarkeBng on the World’s Largest Billboard The ul9mate plagorm for Chinese consumers to shop, discover the latest trends, and to research product and pricing informa9on. This can be leveraged for execu9ng effecBve promo9ons and marke9ng campaigns: 11.11 Global Shopping Festival
►  In 2009, Tmall.com pioneered
November 11 shopping festival,
known as “Singles Day” in China
GMV in Billions (USD) $16.0 $14.3 $14.0 PC $12.0 $9.3 Mobile, 69% $10.0 ►  2015 Highlights:
$8.0 $5.8 $6.0 ►  On November 11, 2015 our Alibaba’s
retail marketplaces generated GMV
of US$14.3 billion settled through
Alipay in 24 hours
►  Alipay breaks world record for
transactions process per second
$4.0 ►  Consumers bought over 16,000
international brands
$2.0 $0.0 2010 2011 2012 2013 2014 2015 ►  Australia ranked 5th top-selling
country
Australia Country Pavilion – australia.tmall.com
In 1st 2 days , we sold out
Ø  Grand  opening  on  24th,June,2015  Ø  In  1st  2days  ,  sold  out  7,000+evening  primrose  oil,  7000+  fatblaster,  1000+  suvana  pawpaw  honey  balm  Ø  Introduce  lifestyle  to  Chinese  consumers  Australian Branded Flagship Stores on Tmall & Tmall Global  Retailers Mother & Baby Supplements Cosme?cs & Personal Care Food & Beverage Campaigns for Australian Agriculture  Australian Beef Tasmanian Cherries Tasmanian Apples Australian Wine on Tmall  Ø  Un9l 2017, China “Spirit+Wine” online turnover is expected to grow by 60 billion RMB compared to 10 billion in 2014. Ø  Australia wine ranks No. 3 on Tmall in 2105 Ø  Australian wine including TWS, Penord Ricard group, Helen & Joey, Bird on a Wire Wines, Coldstream Hills, De Bortoli Yarra Valley Estate, Domaine Chandon Australia, Atkins Family Winemakers, Thomas Family Wines etc. Helen&Joey flagship store on Tmall  Deyun Wine launch on Tmall  TWS flagship store on Tmall  SupporBng New Brand Enter into China Market
•  Outback Honey •  JessicasSuitcase flagship store •  AusPost store on Tmall and 1688 LAUNCHING  A  TMALL  GLOBAL  STORE  VS • 
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Brand has Chinese business license Product is stored customs-­‐cleared in Mainland China • 
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Business is located abroad Product is imported on a per-­‐order basis • 
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Chinese legal enBty Corporate bank account within China and Payment received in CNY Trademark registered in China Inventory within China Shipment and delivery within China • 
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Interna9onal legal enBty Home country bank account and Payment received in local currency Trademark registered in home country Inventory outside of China Shipping from overseas
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Successful Partnership Model Tmall Flagship Store Tmall Global Logis9cs IT & Payment Infrastructure Consumer data Promo9on events and Marke9ng Opportuni9es •  Key Account service • 
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Merchant • 
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Defined strategy Product assortment plan Marke9ng plan Sales Targets Third Party Service Provider •  Strategy implementa9on •  Day-­‐to-­‐day opera9ons •  Store content and graphic design •  Day-­‐to-­‐day opera9ons •  Customer service Integrated SoluBons for Overseas Merchants  Cross-border  import  +
Online  Distribution  International legal entity
Existing  Tmall  Global  Merchants  Home country bank account and
Payment received in local currency
Flagship  brand  stores  Trademark registered in home
country
Shipping from overseas
Open  online  distribution  to  specialized  stores  +
Traditional  Import  To  be  launched  in  2016  Expanding  sales  and  import  channels  via  services  such  as  Tmall  Supermarket  LogisBc SoluBons Overseas Shipping Tmall Classic Overseas Merchants Domes9c Shipping Tmall Global Overseas Shipping China Port Customs CIQ
+ Duty & Import VAT
Tmall Global Overseas Warehouses Cainiao Bonded Warehouses
China Warehouse
China Courier
+ Sales VAT
Consolidate Overseas Shipping + Custom Clear + China Courier Parcel Tax
Custom Clear + China Courier Parcel Tax
Alibaba Confiden9al, not to be reproduced or published without the express wri_en consent of Alibaba Group. Chinese Consumers General trade Consolidated Bonded
Payment  &  Settlement  Pay in CNY Consumers Merchants Se_lement 80% •  Alipay market share, mobile, third-­‐party payments market share Source: China internet watch Domes9c Overseas Local Currency CNY 85,900 • Set world record for transacBons processed per second • Broke Record previously held by Mastercard 350 million • Monthly acBve users Alipay  business  in  Australia  Alipay partnership with Paybang Enabling Chinese consumers to pay in RMB for Australian products while Australian merchants directly receive AUD, thus ac9ng as a gateway for Australian companies to enter China online market. Users ü  A mobile phone is all that needed in the payment for customers ü  No internet connec9ons needed, no barrier for the interna9onal roaming customers Merchants ü  No chargebacks ü  Abundant possibili9es for promo9ons based on smart phone Barcode payment
QR code payment