Alibaba - The Inside StoryWhat the e-commerce boom in China

means for Indian e-tailers

E-Tailing India Expo 2016Mumbai, India

February 18, 2016

The numbers

• US$14.3 billion in 24 hours• More than US total sales on Black Friday

& Cyber Monday combined

How did this happen?

Today’s talk

• Inside the rise of Alibaba • Alibaba & the 40 lessons

Please allow me to introduce myself…

Similar markets = similar e-commerce models

1999

How the West was Won

Evolution of the “Western model”

Evolution of the “Western model”

How China was won

China 1999: “E-Commerce Will Never Work Here”

• >“1% of the population using the Internet”

• “No credit cards”• “Poor logistics”• “Government controls”• “People in China don’t

trust each other”• “All of the Internet

experts are in Silicon Valley”

1

Global Vision From Day One

The Alibaba Story

Alibaba.com: an online trading community

Bringing the Human Experience Online

vs.

David vs Goliath Battle

The China collectibles/second-hand goods market…

Evolution of the “Alibaba Model”

Taobao: A Website Designed for China

Taobao: Social Commerce

Circles of Trust

Friends of Friends

Strangers

Family

Friends

Colleagues

Key Ingredient: AliPay’s Escrow Payment

vs

Buyer Seller

Buyer Seller

AliPay

Direct Payment Escrow

Evolution of the “China Model”

* Data as of May 2014

Amazon US: limited branding

3

The Alibaba Ecosystem

Alibaba & the 40 Lessons

Dream big, really big

Never underestimate yourself (or your team)

Never overestimate your competitor

The bigger the problem, the greater the opportunity

Today is tough, tomorrow is tougher, but the day after tomorrow is beautiful

In the spring, prepare for winter

Leapfrog

Focus the customer and the rest will follow

Thanks! 谢谢！porter@taluswoodfilms.com