Alibaba Group

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TO MAKE IT EASY TO DO BUSINESS ANYWHERE

MISSIONMISSION

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China: Largest E‐Retail Market in the World

2014 – 2018 trends

Web Users: 649 million                   800 million

Online Sales: +20% annually ( + 6% in retail sales)

E‐commerce sales: from 10% to 15% of Retail sales = US$ 1 TRILLION (40% worldwide ecommerce: double than USA Market and four times than UK Market)

Chinese middle class: 300 million                       500 million

Mobile: 60%                    75% 

1990s Generation: represents 65% of growth

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group. 3

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Alibaba Group E‐Commerce Ecosystem 

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

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Global Marketplace B2C

Alibaba Group Major Businesses

Operator of a logistics information platform

Online marketing technology platform

Cloud computing platformPayment services

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

Brands and retail B2C Cross border B2C

Wholesale Marketplace B2B group buying marketplace

Online website C2C

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1 billion product and service listings

+10 million active sellers

30 million packages every day

407 million active shoppers

Alibaba: Largest E‐commerce Company in the World

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

7Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

China B2C Market PenetrationTmall is Asia’s largest B2C site, with 61.4% market share in China

Shares of China B2C online shopping websites by GMV in 2014 

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Creator of Single’s Daythe largest Shopping Festival in the world

Category Insight:

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

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Global strategy

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

to help local SMBs to sell to China

Globalization: core of Alibaba’s strategy over the next decade

New Embassies all over the World

“ Over the next decades, we plan to help tens of millions of global businesses sell

internationally and serve 2 billions consumers around the world”

Alibaba Italy

10Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

Tmall Opportunities 

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

全球直营

Tmall & Tmall GlobalPurchasing Business

Principal Model(B2B2C)

Tmall Global(Cross‐border)

Tmall Classic (B2C)

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Tmall Classic vs. Tmall Global

12Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

Business is located abroadProduct may be imported on a per-order basis

Store has Chinese business licenseProduct is stored customs-cleared in Mainland China

• Chinese legal entity required

• Corporate bank account within China and Payment received in CNY

• Trademark registered in China

• Warehouse within China

• Shipment and delivery within China

• International legal entity

• Home country bank account and Payment received in local currency

• Trademark registered in home country

• Warehouse outside China

• Shipping from overseas directly to Chinese consumers

Principal Model

13Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

Purchasing Model: New business on Tmall & Tmall Global

Starting date: 1st of March 2016

Main Category: Food, Baby & mother; Beauty; Accessories; Small leather goods.

Are you Ready?

14Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

Merchant’s Tmall StoreMerchant’s Tmall Store

Retail or Brand Owner Tmall/Tmall Global 3rd Party Service Provider

• Brand positioning

• Marketing strategies

• Product assortment

• Pricing strategies

• Distribution strategies

• IT and Payment Infrastructure

• Real‐time consumer data

• Analytical tools

• Promotion events

• Store maintenance• Product content editing• Day‐to‐day operating• Customer service• Warehousing• Logistics service• Merchandize analysis

Cainiao

• Logistic Data Infrastructure

• System integrated with Customs

• Analytical tools

Alibaba Italy: Mission – Connect Italian Brands to China  

15Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

全球直营Tmall & Tmall GlobalPurchasing Business

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Italian Flagship Store on Tmall & Tmall Global

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

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Italian Flagship Store on Tmall & Tmall Global: La Perla

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

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Italian Flagship Store on Tmall: Barilla

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

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Italian Flagship Store on Tmall Global: Coop

Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

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Alibaba

20Alibaba Confidential, not to be reproduced or published without the express written consent of Alibaba Group.

Founded in China Created for the World

‐ Jack Ma Alibaba’s Founder and Executive Chairman

2 billion Consumers40% of all GMV coming from International