CEO Zhang Yong'S First Speech In The US

Today, all businesses in China are undergoing a new round of digital revolution. At the same time, China has a growing middle class, which is already comparable to the population of the United States and will double in the next five years.

The following is a record of the speech:

I am honored to be here as a guest speaker. Today I want to share with you the mission of Alibaba: let the world have no hard business.

The first thing Alibaba did in 1999 was to set up a wholesale platform to help Chinese SMEs find trade opportunities nationwide and globally.

Through this digital platform, small and medium-sized enterprises can sell things to China and find global trading partners.

In 2003, we established a retail platform -- Taobao C2C platform. After five years, we built the B2C platform, which is the well-known Tmall nowadays. This is our brand centric retail platform.

From these businesses, you can see that what Alibaba is always doing is sticking to our mission: let the world have no hard business.

Today, our retail platforms are in the lead in China and the world. We might as well use a set of data to see our business:

Last year, our retail platform reached US $400 billion, and we will usher in a milestone this year, that is, the scale of Alibaba retail business will surpass WAL-MART.

We also have a very ambitious goal. Our turnover will reach US $1 trillion in five years. In the future, we want to serve 2 billion consumers from China and the whole world.

Last year, we experienced a successful mobile pformation. Now nearly 300 million consumers visit our retail platform through mobile devices every month. Last quarter, we were pleased to find that more than 50% of the turnover came from mobile devices.

Over the past 12 months, there are 350 million active users on our retail platform.

At the same time, we successfully organized 6 double eleven shopping carnivals.

"Double eleven" has been held since 2009. Today, double eleven has become the "black Friday + Internet Monday" of Chinese people. It has become the "consumption Festival" of China and the whole world.

By taking advantage of our huge user base, we can help businesses reach consumers across China.

As you may know, in China, half of the population live in rural areas, and they live in real rural areas. There may not be more than 1000 families in each village. There are nearly 600 thousand such villages in China.

Through online platforms, we can let our brand partners and business partners reach out to farmers in these villages to help them enjoy the same goods and services as urban people.

Last year, we set up our new platform to provide cross-border import solutions to businesses. We call it Tmall international. Today we use this platform to let overseas businesses without physical stores in China establish a fast track to reach Chinese consumers.

All Tmall international merchants will only be pported to Chinese consumers when the order is generated.

We work closely with many cross border pilot areas and free trade zones in China.

Smooth implementation.

There is a particularly successful story about Tmall International: Costco.

As you may know, Costco has been discussing whether to enter the Chinese mainland market for many years. In October last year, they decided to open online stores at Tmall international and sell their famous nuts and cranberry products to Chinese consumers.

They started sales for 1 months, and their sales reached $6 million 500 thousand. They sold 300 tons of Kirk orchid nuts and 200 tons of cranberry dried to Chinese consumers at the double eleven Shopping Festival in 2014.

In the past, Chinese consumers could not get these typical American products, but today they can buy them from the Internet.

On our retail platform, we not only help businesses sell products online, but also enable them to pfer offline businesses to online businesses, and we are working closely with them to create new models. A successful case is that we work with farmers in Washington state to help them sell their cars from the United States to the Chinese market.

Our mode is completely different from that of offline stores. We have done a very simple thing: establishing a pre-sale mode to aggregate the needs of Chinese consumers in advance. When we gathered the demand and concentrated the order, we found the American farmer and said, "let's take the car off the tree."

Then the farmers sent the cherries to China, and we split them into small packages and sent them to each consumer.

As you can imagine, American farmers can effectively improve their supply chain through this mode, because all pportation is accompanied by order guarantee, they have a strong guarantee from the demand side, no longer slow inventory sales, no longer waste, all goods can be sold to terminal consumers, and intermediaries are eliminated.

In this mode, Chinese consumers can enjoy very preferential retail prices, because the cost structure is quite different, and American farmers are also very happy.

We started experimenting with this innovation two years ago. In 2013, we sold 160 tons of cars, which reached 600 tons last year.

If we can help us farmers in this way, then we can also copy continuously, such as Alaska's fresh wine, California's red wine, and sell it to Chinese consumers in the pre-sale mode.

When I introduce all of our business to you, you may be thinking, "Ok, Daniel, we agree that Alibaba is a very strong retail platform, you can help us get Chinese consumers."

But what I want to say is: "yes, we are a very powerful retail platform, we can help you sell to Chinese consumers, but Alibaba can do more to help you."

When we define ourselves, we never see ourselves as a family.

Company, we are a data enterprise, a data platform.

With a turnover of $400 billion a year, 40 million pactions a day, we have accumulated huge consumer data.

Every paction is real and real time.

We know who is the buyer, his address, his favorite brand, we know if he has children, will he buy it?

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How we can use these consumer data to help partners and develop business in China is exactly what we are doing.

What we do is very simple. We have established a wide range of online marketing advertising alliances. We work with internet content providers. We can help advertisers track users' footprints throughout the Internet.

In fact, in addition to the retail platform of e-commerce, Alibaba also has several very interesting mobile Internet assets. We are the largest shareholder of sina micro-blog, China's version of twitter. We are shareholders of Youku potatoes of the Chinese version of Youtube. We have the largest mobile browser UCWeb in China, and we have acquired the second largest map navigation application in China.

Through our mobile Internet assets, we can not only help advertisers track consumers' footprints on Ali retail platform, but also help them understand consumers across multiple platforms.

Today, you can imagine that with the development of mobile Internet, users will always be online.

We have 350 million active users. They are not always in front of the computer. They may have dinner with their family and friends at the department store on weekends.

How can we help our partners? Not only the businesses on the platform, but also the local service providers, to promote their services, to locate their consumers, to provide consumers with strong information and provide them with nearby restaurants.

Now, many people ask me, Daniel, tell me the competition on the line, do you always compete with offline retailers? I said, "yes, we compete with them, and we are working with them."

Today, all the businesses in China are in the digital process. All the traditional offline retailers are undergoing pformation, how to help them upgrade their business and how to help them share inventory online and offline. We have made a lot of efforts in this regard.

Today we are able to help businesses on our platform to share inventory in various channels, help them manage customers in various channels, acquire new users, and retain old customers. This is what we call "all channels".

Today, many consumers place orders on the Internet, but orders are completed through offline stores. They can return goods to stores, or even modify the size of a pair of trousers.

In our mind, online and offline will eventually be highly integrated.

What we want to do is to use these data to help these enterprises operate. We believe that the new economy will be a combination of the digital economy and the real economy. We believe that data is the crude oil of the new economy.

Today, I am excited about the future of China, because the Internet, because of the high penetration of mobile Internet, today all Chinese businesses are undergoing a new round of digital revolution. Today, the younger generation of China has changed the way of life. We believe Alibaba can achieve the goal of serving 2 billion Chinese and global consumers.

The most important thing is to keep innovating and innovating.

As we have been saying for the past 15 years, "today is very difficult, tomorrow is more difficult, but the day after tomorrow will be very good." we will work hard to create more innovations like C2B, such as double eleven, continue to provide our customers with new values, and strive for a brighter day.

Thank you!