Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
1
June9,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Takeaways from 2017 Alibaba Investor Day 1
AtDay1ofthe2017AlibabaInvestorDay,theseniorexecutiveteamshareditsstrategicvisionforthecompany’scorecommercesegment,aswellasrecentdevelopments.
1) CEODanielZhangpresentedanoverviewofAlibaba’secosystem.Hebelievesthatdatatechnologywillbepivotalindrivingsynergiesacrossallbusinessunits,whicharedrivingnewinitiativesincommerceonaglobalscale.
2) CFOMaggieWuguidedforFY18revenuegrowthinthe45%–49%yearoveryearrange.ShereviewedAlibaba’ssatisfactoryfinancialperformancesinceitsIPO,drivenbystrongcash-flowgenerationofthecorecommercesegments.SheexpectsAliExpressandAliCloudtobethenextgrowthdrivers,followedbyinitiativescurrentlybeingincubatedsuchasNewRetail,internationalexpansion,IoT,AI,etc.
3) CMOChrisTungtalkedaboutUniMarketingandBrandDatabank—bothtoolswhichAlibabahasmadeavailabletobrandstoincreasetheirmarketingefficiency.HeillustratedthatbrandscanleverageAlibaba’splatformthroughouttheconsumerjourneytoraiseawareness,interest,purchasesandloyalty.
4) OneoftheleadingKeyOpinionLeaders(KOL)onTaobao,Cherie,statedthatlowertraffic-acquisitioncosts,inventorycostsandtrailingcostsarethekeyadvantagesthatKOL-drivencommercehasovertraditionalcommerce.
2
June9,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
AboutAlibaba2017InvestorDayFungGlobalRetail&TechnologyisattendingAlibaba’s2017InvestorDayatitsheadquartersinHangzhouonJune8–9.Day1oftheInvestorDayfocusedonthefollowing:
• CEODanielZhangprovidedanoverviewofAlibaba’secosystemanditsfuturestrategy
• CFOMaggieWutalkedaboutthefinancialprojectionsforthecompany
• CMOChrisTungpresentedonUniMarketingandhowbrandscanleverageAlibaba’splatformtointeractwithconsumers
• TaobaoKOLCherieprovidedademonstrationoflivebroadcasting
AStrategicPerspectiveontheAlibabaEconomyCEODanielZhangpresentedanoverviewofAlibaba’secosystemandthecompany’sfuturestrategy.Alibabahasbeenevolvingrapidlysinceitwasfoundedin1999.ZhanghighlightedthatTaobaowillremainanimportantplatformwithinitscorecommercesegment—ithastransformedfromamarketplacetobecomeasocialcommerceplatform,allowingconsumerstohavefunexploring.ThecompanyhasalsomovedintonewareassuchasdigitalentertainmentandlocalservicesthroughinvestmentsinKoubei,alocalcommerceplatform,andele.me,anonlinefooddeliveryplatform.
Hebelievesbigdatatechnologywillbepivotalindrivingsynergiesacrossallbusinessunits.
Source:FungGlobalRetail&Technology
3
June9,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
NewRetail:DigitizingtheCoreComponentsofRetailOperationsAlibabaaimstodigitizethedifferentstagesofthevaluechain,andhasbeenexperimentingwithNewRetailacrossdifferentretailformatsatitsstrategicpartnerssuchasIntime,Suning.com,SanjiangandBailian.ZhangregardsAlipay,whichprovidesdigitalpaymentsolutionsforofflineretailers,asimportant,asithelpsgiveconsumersaseamlessexperiencebothonlineandoffline,andisbeingintegratedatphysicalretailers.
Source:Companydata/FungGlobalRetail&Technology
TransitionsZhanghighlightedthesignificanttransitionsthatareongoing:
1. Frommakingconnectionstotransformingretail:Alibabahasshiftedfrommerelyconnectingbuyersandsellerstochangingthewayconsumerstransact,byintegratingmarketing,distribution,omnichannelandsupply-chainfunctionsthroughdatatechnology.
2. Cloud—frominfrastructureasaservicetoapplication-enhancedcloudasaservice:ThefunctionofAliCloudhasevolvedtosupportdifferentfunctionssuchasretail,digitalmarketing,logistics,digitalmedia,financialservices,customerservice,citybrainandindustry-tailoredsolutions.
3. Digitalmedia&entertainment—fromcommercetoentertainment:Alibabaseesstrongsynergiesbetweencommerceandentertainment.Ithasbeenbuildingitscontent-generationecosystemandleveragingitsmediaassetstotransformcommercetomaketheshoppingexperiencemoreenjoyableforconsumers.
4. LeveragingChina’sadvantagetomeetglobalconsumptiondemands:AlibabaaimstoleverageitsadvantageinChinatoselloverseasthroughAliExpress,across-borderdirect-to-consumerexportplatform;LazadaforSouth-EastAsianmarkets;andTmallGlobal,whichbringsqualityimportsintoChina.
Source:FungGlobalRetail&Technology
Customers Productmerchandising Orders Payment Loyalty
Program
4
June9,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
FinancialPerspectiveandRevenueGuidanceCFOMaggieWubeganherpresentationwitharecapofAlibaba’ssatisfactoryfinancialperformancesinceitsIPO,supportedbysustainablerevenueandgrossmerchandisevolume(GMV)growth,animprovingmobilemonetizationrateandhighgrowthinuseranduserengagement.WuprovidedFY18revenueguidanceforarangeof45%–49%yearoveryear.
Source:FungGlobalRetail&Technology
Wusharedwiththeaudienceherthoughtsonhowanewbusinessunitgenerallytakesoversevenyearsfrominitialincubationandgainingtractiontogeneratesustainablecashflow.Currently,thecorecommercedivisioniscash-flowgenerative.SheexpectsAliCloudandAliExpresstobenexttoreachthatstage,followedbyinvestmentscurrentlybeingincubated—i.e.,NewRetail,UniMarketing,content,internationalexpansion,etc.
Source:FungGlobalRetail&Technology
5
June9,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
TransformMarketing—HowBrandsCanLeveragetheAlibabaPlatformCMOChrisTungpresentedonAlibaba’smarketingcapabilities,whichprovidebrandswithafulldimensionaldatasetfromwhichtoconstructconsumers’lifestyles.Inordertoincreasetheeffectivenessofmarketing,AlibabalauncheditsBrandDatabank,whichhelpsbrandsbuildawareness,interest,purchasesandloyaltyamongconsumersbymakingdataactionableandvisible.TunggaveanexampleofhowbrandscanleverageAlibaba’splatformtoincreasemarketingefficiency:
Step1—Awareness:BrandscanuseYoukuandAlimama.comtoincreaseawarenessamongconsumers
Step2—Interest:BrandscanparticipateinshoppingfestivalssuchasSuperBrandDaytomakeconsumersmoreinterested
Step3—Purchase:Juhuasuan,agroup-buyingsite,canhelpconvertconsumers’interesttopurchase
Step4—Loyalty:TheBrandHubcantransformcustomerswhohavepurchasedintoloyalmembers
Source:FungGlobalRetail&Technology
ContentDrivesHigherConversionThelongerChineseconsumersstayonAlibabaplatforms,themoretheyspend.Theaveragecustomerplaced38ordersinthefirstyearofregisteringonanAlibabashoppingsite;fouryearslater,theyplacedanaverageof123orders.Theaveragespendingpercustomerrosefromaround¥3,000inthefirstyeartomorethan¥12,000inthefifthyear.
UniMarketingasaTooltoManageConsumerAssetsTungalsoprovidedadetailedexplanationofUniMarketing,whichhesawasaprocessofmanagingconsumerassetswiththefollowingthreecharacteristics:
1. Universaltouchpoints:Suchasthroughtheintegrationofmembershipsystems
2. Unitedchannels
3. Auniquerelationshipjourney:Tohelpmanagetherelationshipbetweenbrandsandconsumersthroughthedifferentstagesoftheconsumerjourney
6
June9,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
LiveDemonstrationofKOLOneoftheleadingKOLsonTaobao,Cherie,presentedonthetopic“TheRiseandBreakthroughoftheInternetCelebrity—TheEconomicModelunderChina’sE-CommerceEnvironment,”andtalkedabouttheadvantagesofusingKOLtoincreasee-commercetrafficandconversion.Shealsogavealivedemonstration.
Cheriebeganbysharingherviewonthecompetitivenessandkeyadvantagesofthebusinessmodelofe-commercedrivenbyKOLs.
1. Thetrafficacquisitioncostislower:Thesecostsarelowerfore-commercesupportedbyKOLs,astheyalreadyhaveafanbase.
2. Theinventorycostislowerthanphysicalretail:TheKOLe-commercemodelcanusepre-salestotheiradvantage.KOLshavebuilttrustwiththeirfanswhoarewillingtowaitthe11–15daysleadtimefrompre-salestodelivery.
3. KOLe-commercehasalowertrialingcost:Traditionalretailmodelshavelimitedknowledgeaboutthepotentialmarketreactiontonewproductlaunches.KOLscangainmorecoloronthemarketreactionbyfirstpostingphotosofproductstheyplantosell,andgaugeconsumers’reactions,asindicatedbythenumberoflikes.
4. ItemssoldbyKOLshavehighconversionrate:Over10%.
LivedemonstrationofKOLCheriesharedsnapshotsofherpreviouslivestreamingsessionsandalsogaveademonstrationoflivestreaming.Duringthesession,sheintroducedthefashionitemsthatshewaswearingandinteractedwithbuyerstoanswertheirqueriesonspecificproducts.Thenumberoflikesfromviewerstotaled500,000duringthe15-minutesession,anindicationofthepopularityofhershow.
Source:FungGlobalRetail&Technology
7
June9,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
ConclusionThepresentationsaboutthefuturestrategyandthecorecommercesegmentleftusconvincedthatAlibabaisonasolid,long-termgrowthtrajectory.TheFungGlobalRetail&TechnologyteamlooksforwardtoreportingthehighlightsofDay2of2017AlibabaInvestorDay,whichincludeskeynotepresentationsfromExecutiveChairmanJackMaandExecutiveViceChairmanJoeTsai,andthelatestdevelopmentsofAliCloud,thedigitalentertainmentsegment,AntFinancialandCainiaoNetwork.
8
June9,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:[email protected]
ZaneYangResearchAssistant
HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242–246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017
FungGlobalRetailTech.com