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    Alibaba Introduced More Than 200 Investors To The Latest Business Development And Strategic Objectives.

    2016/6/15 12:04:00 55

    AlibabaBrandLogistics

     Jack Ma

    In June 14th, Alibaba group held an investor day conference at headquarters in Hangzhou, including a group of top executives of the group chairman, Ma Yun, which presented the company's latest business development and strategic objectives to more than 200 global institutional investors and analysts.

      

    Alibaba

    Group chairman of the board of directors, Ma Yun attended the event, said Alibaba is not just an e-commerce company, for all industries to build a commercial infrastructure is its core strategy, and a healthy business infrastructure, electricity providers,

    logistics

    Finance, data computing and cross-border five elements are indispensable.

    This is the first collective appearance of Ali executives since the September 2014 IPO, and the panoramic display of the "2 edition Alibaba" to global investors.

    From electricity providers to big data cloud computing, Internet finance, logistics system, digital entertainment and international expansion, Ali is completing its pformation and upgrading through a commercial pformation.

    Its business is on the battlefield.

    As the world's largest third party retail platform, Alibaba's business has evolved from the 1 version of the electricity supplier to the 2 balanced version of the industrial ecosystem.

    Alibaba group CEO Zhang Yong said that Alibaba group set itself a long-term strategic goal of serving 10 million of the world's profitable enterprises and 2 billion consumers, and identified three major strategies of globalization, rural areas, big data and cloud computing, thus forming seven core business segments of electricity, finance, logistics, cloud computing, globalization, Internet of things and consumer media.

    At the same time, it also made layout in film, health, sports and music.

    On the same day, Ali's core business management attended all of them, on mobile Taobao, business services,

    brand

    Major customers, Ali mother, B2B, rural Taobao, Ali cloud, rookie, investment mergers and acquisitions, finance, platform governance and other businesses and topics, to the scene investors to introduce new business growth highlights.

    After several consecutive quarters of three digit growth, Ali cloud has become the world's third largest cloud computing provider; rural Taobao will realize 40000 counties in 600 counties in 2017; Alipay expects 2 billion users in the next ten years.

    It is worth noting that Ali announced that from the 2017 fiscal year, the "mobile media and entertainment" in the revenue items will be listed from other categories, indicating that the mobile media and entertainment matrix, which is based on UCWeb, Ali music, Ali sports and Youku potatoes, has become the new main business and core revenue source of Alibaba after the electricity business and cloud computing.

    Empowering merchants become the core value

    At the investor day conference, Alibaba group released its first annual financial revenue guidelines.

    By the end of March 2017 fiscal year (fiscal year 2017), the total revenue of the company will grow by more than 48% per annualized year. If we do not consider the two new assets purchased by Youku and Lazarda, we expect that the total annual revenue in fiscal 2017 will increase by more than 36% per year, all over the 33% increase in the 2016 fiscal year.

    Ali business platform focused on the latest number of users, activity and other data.

    In May 2016, the number of Taobao mobile users reached 150 million.

    Mobile phone Taobao user activity increased year by year, DAU (daily active user number) /MAU (monthly active user number) ratio increased from 33% in 2014 to 41% in 2016.

    Among them, the active users visit Taobao mobile 7.2 times a day, browse 18 products, and 20 million daily reviews and sharing of products are generated on Taobao mobile phone.

    With the continuous improvement of users' effective activity, Ali believes that Taobao has long gone beyond shopping, but is an interface for users to enjoy content, get information, explore trends, interact with businesses, exchange ideas and entertainment.

    The functions of big data technology, such as personalized recommendation, customized information update, and different consumption themes, have greatly improved the participation of users.

    Tmall has also become a platform for businesses and consumers to enhance interaction.

    It is through upgrading the sales and distribution channels to the consumer community platform that Taobao has achieved a double increase in user gold content and value creation for businesses.

    Diversified services enhance the gold content of active users. In fiscal year 2016, each year's active buyers of Ali platform average annual income of 189 yuan, and the average monthly income of mobile users per month is 123 yuan, which is 171 yuan and 62 yuan a year last year.

    By upgrading the way of business in China, Ali platform also creates premium for brand creation.

    According to incomplete statistics, more than 50 businesses have launched the IPO plan on Tmall platform, and Alibaba's associated enterprises ant gold clothing and rookie network have completed a new round of large private placement and been oversubscribed.

    According to the above figures, at the investor day conference, Alibaba focused on explaining the value of platform service providers to investors.

    Ali management believes that the value that Ali provides for businesses has been upgraded from the previous sales channel to a diversified commercial basic service. The business value is not only the paction value brought by the Ali platform, but also the marketing value and business efficiency.

    Content empowerment provides powerful wireless operation tools to businesses. Data empowerment provides "hydropower coal" for business operation customers. The full channel empowerment boosts business online and offline integration. Alibaba is helping businesses rebuild operation costs, compress channels, sales, marketing costs and other operating expenses, significantly improving operational efficiency and profitability.

    {page_break}

    The display of diversified value-added services will show more and more richness in the future earnings of Ali.

    Ali believes that it is not just the pursuit of GMV's e-commerce platform to break through sales or distribution functions, and become an interactive platform for consumer community platforms, businesses and consumers. Service consumers have already surpassed GMV as the core value of Alibaba, and correspondingly, GMV numbers will be changed from quarterly to annual reports.

    At the conference site, Mr Ma said: by 2020, Ali will achieve 6 trillion yuan GMV, but "more importantly, we need to create one hundred million job opportunities to help ten million profitable enterprises".

    Ma Yun further explained: "GMV has never been our core indicator, and the commercial infrastructure is".

    Alibaba will upgrade its business form through continuous self pformation, and there is no reference to the business form of building a commercial infrastructure, enabling businesses and enterprises.

    The path of development and pformation will be created and upgraded by Ali and tens of millions of merchants. Therefore, the mode of value display and analysis will be jointly explored and amended by Ali and global investors.

    Upgrade with Ali to upgrade all industries

    Since the 2016 fiscal year, Alibaba has been taking frequent moves in the areas of entertainment, local life services and overseas e-commerce giants.

    In response, Cai Chongxin, executive vice chairman of the board of directors of Alibaba group, said at the scene of the conference that "Ali's investment and acquisitions are implemented in accordance with the strategic plan, and have never been driven by financial reasons."

    For example, Ali invested in Suning and Yintai business, and promoted the rapid pformation of the retail supply chain under the whole line. It is committed to making 90% of the retail business in China more efficient. Investing in the construction of a rookie network, driving an intelligent logistics network through big data, helping China's entire Express warehousing and distribution industry to enhance services and ultimately reducing the social logistics costs; investing in the acquisition of UCWeb and Youku potatoes has become the flagship business of Alibaba in digital entertainment and consumer media.

    Cai Chongxin said that based on the vision of globalization, the development of the rural economy and big data, and the goal of building an open, pparent and collaborative business infrastructure platform, Ali will continue to layout its ecology and invest in the future.

    We hope that we can better improve the whole business ecosystem and environment through capital ties, and promote and promote the pformation and upgrading of various industries in the Internet.

    At the same time, the group has more than half of its employees and affiliate ants, gold clothing and rookie. In recent years, it has been working hard in logistics, Internet finance, big data cloud computing, mobile Internet and advertising platform business, and ten years later, based on data technology, health and digital entertainment business, Ma called it "doubleH" industry (HealthandHappiness).

    Cai Chongxin's speech echoed the view expressed by Ma Yun in a long article to shareholders in October 8, 2015: "the services provided by Alibaba in the future will be the fourth indispensable commercial infrastructural resources of enterprises after water, electricity and land."

    Ali will provide the underlying services to help enterprises in various industries to complete their respective commercial Internet, and Ali will continue to upgrade with its own business form, eventually leading to the upgrading of all industries.

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