Alibaba research briefing
Alibaba research briefing
Location: Venture House, Alibaba is headquartered in Hangzhou
Officer: Ma (Chairman), David Wei (CEO), Jia Jiong (CEO assistant)
Research: Zhongzhao Min, on behalf of other investment institutions
1, Ma its people
Alibaba Chairman of the Board and Chief Executive Officer.
&quot;Concave cheeks, twisted hair, a mischievous grin, a 5-foot-tall, 100
pounds of urchins look like&quot;, July 17, 2000 the world famous magazine
&quot;Forbes&quot; the cover story for the first time a Chinese
entrepreneurs were describing, the &quot;little man&quot; is the founder of
the world&#39;s largest B2B website Ma.
1964, 10, was born in Hangzhou.
June 1988 graduated from Hangzhou Normal University Foreign Language
April 1995 founded the &quot;Chinese Yellow Pages&quot; website, is the
first Chinese business information site online, in the earliest formation of enterprise
service-oriented Internet business model.
The end of 1997, Ma and his team developed the Ministry of Foreign Trade in Beijing,
the official site, online commodities exchange market a series of national sites.
In early 1999, he went back to Hangzhou to 500,000 yuan venture to develop Alibaba
In 2001, Chinese enterprises, &quot;WTO&quot;, to better develop the
international market goals, Alibaba launched the &quot;China
Suppliers&quot; service, recommended to the world China&#39;s top
export enterprises and commodities, also launched the &quot;Alibaba
recommend purchasing commercial&quot; service with international
procurement group Wal-Mart, General Electric, Markant and Sobond other allied
together in cross-border online purchases;
In the same year, together Alibaba China Federation of Industry, the State Council
Development Research Center and other departments jointly launched the initiative
set up in China, &quot;9.19&quot; Integrity Day, and introduced world-first
online credit management of enterprise-class products &quot;credit
In the same year, the Harvard Business School in the public Alibaba China MBA case
management practice, and again in transition management practices Alibaba selected
case studies. In September, the U.S. financial magazine &quot;Forbes&quot;
named best in the world again Alibaba B2B site is one of the only selected site.
October 2000, the U.S. Asian Business Association selected this year&#39;s Ma,
&quot;business leaders&quot;, in recognition of his innovative business
models and enterprises to enter international markets to help countries realize the
contributions made by globalization.
Jack Ma, founder of the company&#39;s development closely related to the
exchange and study with him, I give the following positive assessment:
Ambitious and firm conviction, rigorous thinking, stunned the world rally team, the
implementation of strong, is a rare entrepreneur
Second, B2B e-commerce environment
1, China&#39;s Internet development: the development of the Internet a
necessary condition for B2B e-commerce, China&#39;s Internet users from 59.1
million in 2005 to 1,37 million in 2006, a compound annual growth of 23.4%
penetration rate of 4.6 over the same period % to 10.5%, 66% use broadband Internet
access, according to the number of users has been second in the world. However, the
penetration rate of the United States and Japan, and 44.9%, 69.4%.
2, China&#39;s SMEs: any economies, SMEs are one of the most creative
groups, China is no exception. According to the National Bureau of Statistics, 2004,
China&#39;s SMEs, together with other private companies, the contribution to
the GDP is about 58%, 48% contribution to revenue, import and export contribution
to 68% and 75% of employed urban employment. By the end of 2006 more than 42
Third-party B2B online trading market operated by the increasing number of SMEs.
2002, 100 million to 8.8 million in 2006. And according to official statistics, online
marketing budget of the total budget increased from 2.1% in 2002 to 10.8%, and the
Third, the business profile
Alibaba is China&#39;s leading B2B e-commerce company, mission is to help
small and medium enterprises development, so that &quot;There is no difficult
business.&quot; Calculated according to registered users, is the largest online
B2B company. Mainly by four domestic e-commerce business: Alibaba, HC, global
resources and NetSun 2004, accounting for 39% of Alibaba, Alibaba in 2005
accounting for 56%, accounting for 68% in 2006. The company operates two trading
market, the international trading market (www.alibaba.com) and domestic market
To expand the customer base, the company free of charge to all registered users to
provide basic services, all the buyers have free and members who wanted to become
suppliers of membership fees charged by the seller, the international members through
annual dues 50,000 yuan, the domestic members of 2800 yuan per year, Membership
renewal rates as high as 70% - 80%. The company also provides value-added services
to members to get more revenue. From 2004 to the first half of this year&#39;s
business and profits are listed below:
?2004 2005 2006 2007 (January-June)
Registered users (million) 620,110,019,802,460
Paying members (name) 77000141000219000255000
Revenue (million) 359407383013639095770
Net income (million) 7386170454219938295207
Fourth, investment points
Ma and Wei, that the company has the following investment highlights:
1. SME e-commerce market, the future prospects are very bright. 2002 SME B2B
e-commerce market is only 1 million, in 2007 it reached 11.7 million U.S. dollars.
With the increasing use of B2B e-commerce SME platform, B2B e-commerce
platform in 2012 will reach 41 million U.S. dollars, the annual compound growth rate
will reach 45%. At the same time SME online marketing budget share of only 2.1% in
2002, 2006, it reached 10.8%, is expected to reach 20% by 2012.
2. Alibaba is now the world&#39;s first B2B e-commerce brand, revenue and
market share ahead. Alexa statistics show that Alibaba.com is the world number one
e-commerce sites, but also the world&#39;s first national business and trade
3. Alibaba and the users is a win-win business model and revenue model. Alibaba
currently provides users with free registered users, charges membership services and
value-added services will enable users of different services will be the result of
different promotional and marketing opportunities. Alibaba also will also provide
users of different services revenue, so will be a win-win revenue model.
4. Alibaba has the perfect combination of localization and international management
team and unique corporate culture. Alibaba 18 business veteran still in service for the
company, including seven in the listed companies, and other all other companies in
the group, but the board has four founders, the board of directors and management
team, many of per capita international background. Alibaba to enterprises in order to
better implementation of six values will be incorporated into the quarterly appraisal of
their being, and financial indicators to each accounted for 50%.
5. Alibaba has good growth opportunities and development strategies. Currently, there
are 42 million SMEs, of which 900 SMEs using B2B million, of which Alibaba has
only 256,000 paying members, so the market prospect. Alibaba future regional
expansion will continue to expand the number of users, paying customers to
accelerate the conversion, and will also strengthen the development of new products,
drive sales, provide more value-added services.
6. Alibaba now has a good cash flow and profitability, low risk and high growth in the
financial model. Alibaba international trading market growth rate of registered users
reached 46%, of which 31% growth rate of paying members; the Chinese market
registered users grew by 62%, 41% paid membership. Bue said that
Alibaba&#39;s annual revenue growth of 69%, annual operating profit growth
has reached 114%.
Fifth, research summary