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Alibaba.com @ CeBIT Australia
Keys to Successful Sourcing
Daphne Lee
International Business Development & Marketing
Alibaba.com June 1, 2011
1999 2011
Jack’s apartment
Hangzhou, China
Alibaba Group Overview
• Founded in 1999 by Jack Ma, CEO of Alibaba Group
• Alibaba group now has 20,000+ employees and 60 offices in China,
Hong Kong, Taiwan, Korea, USA, UK and India.
View from the sky bridge at Alibaba.com corporate
campus in Hangzhou, China
3
Alibaba Group Overview
China's largest
C2C and B2C
retail website.
In year 2010,
Taobao has 370
million users, 4.7
million sellers.
2010 GMV near
400 billion
RMB. (app. 60
billion USD)
China's leading
third-party
online payment
platform, 550
million users.
Up to 5.5 M
transactions
amounting to
over RMB 1.4
billion daily.
One of China's
leading
Internet portals
A decade later, Alibaba Group has become the largest e-commerce
company in China and a family of Internet-based businesses
World Largest B2B marketplaces
Alibaba.com Limited (HK
stock code: 1688)
4
Where are we now?
558,000 registered members in Australia
5
Our Mission
Alibaba.com Vision for next 10 years
1999
2009
2019
Survival • Order
Growth
• Management
• Talents
Expansi
on
• Financing
“To make it easy to do business anywhere.”
Challenges of SMEs Our Vision
New Business Paradigm
CBS –
Consumer driven model
Big SME market :
~42 million SMEs in China
~22 million SMEs in US
~13 million SMEs in India
~ 4 million in Japan
Critical to global economy and trade
China US Japan India
~ 60% of GDP ~ 50% of GDP ~ 55% of industrial
production ~ 17% of GDP
~ 70% of Import/Export
Volume
~ 70% of Export Volume
~25% of Export volume
~ 40% of manufacturing
output
~ 80% of employment
~ 70% of employment ~ 65% of Import
volume N/A
SMEs: Engine of Growth of Any Economy
Market Overview – Small Businesses
Source: Australian Bureau of Statistics 2005 and 2006 Characteristics of Small Business Surveys (cat. no. 8127.0), 08/06/2008
There are 1,646,344 small business owners in Australia • Small businesses defined as having “less than twenty employees”
male
68%
female
32%
Of the males, 80%
work full-time Of the females, only
39% work full-time
8
Challenges Solutions
The advent of online marketplaces has helped address
many of these SME barriers to international trade
Limited capital and
resources
• 24 x 7 product showcase and global
reach
• Highly efficient online marketing tools
• Low-cost communication tools
Lack of foreign market
knowledge / connections
• Active trading community
• Online market research
• User forums / knowledge sharing
• Robust global online company
database
Lack of confidence in doing
international trade
• On- and offline partnerships (with
trade show organizers, big buyers,
etc.)
• Public-private partnerships (with trade
associations, government bodies)
How SMEs Benefit from eCommerce
Sourcing Process
Product
Search
•Identify products
close to the
needs
•Specify form of
customization
Supplier
Qualification
•Identify
capability and
experience
•Screen
companies
based on item
and company
description
•Judge based on
responses
received, such
as speed of the
email, domain
knowledge,
flexibility,
services, and
support received
etc.
Sampling
•Buy samples
from the
suppliers. In
some cases, free
samples
•In some cases,
request
customization
•Judge the
supplier based
on sample
received:
quality, price,
materials etc.
•Try the supplier
based on
communication,
shipment
packaging etc.
Meet in
Person
•Meet suppliers
face to face
•Either in trade
shows, or visit
the supplier in
China
Trial
•Start with
orders with
small amount to
manage the risk
of large
inventory
•Judge suppliers
based on the
post-sales
service received
Reorder
•Once satisfied
with the
products, come
back and
reorder as
needed
Fact:
Average sourcing cycle is 3 to 4 months.
More than half this time on search.
Source: Aberdeen Group study
Evaluate Negotiate Transact Search & Discovery
52%
48% on remainder
Why Alibaba?
Key pain area for trading companies
Alibaba.com B2B eCommerce |
International Marketplace
Key features on product listing page:
2. Supplier/Product Information • Company Products
• Company Profile
• Company Video
3. Value-Added Services (VAS) • Keyword Search
• Premium Placement
• Virtual Showroom
4. Real-time Communication &
Inquiry • Trade Manager
1. Search Engine • Keyword Search
• Product Category
Alibaba Buying Tools
12
(1) Submit a RFQ form to
enjoy a customized
matching service from
Alibaba.com
(2) Post a Buying Leads to
let the right suppliers find
you
(3) Subscribe Trade Alert to
get updates on the latest
products
13
AliExpress.com & Escrow Service
Purchase your orders online now, including payment and shipping.
- Suitable for small-medium order quantity
ESCROW buyer protection ensures you never release your money to the
supplier until you receive the shipment on your doorstep.
Buyer may select
delivery from
UPS, FedEx, or
DHL at prescribed
rates.
VISA, MasterCard
T/T and PayPal
accepted.
Australia Buyers on Alibaba.com
15
Founded in 2004 Dealsdirect.com.au makes shopping easy for the millions of people living in Australia
Dedicated team of buyers, majority of sourcing done
on Alibaba.com
Roughly 30-80% less than recommended retail prices on all of our products
Wide range of product choices
Guaranteed low prices
16 16
Buyer Testimonial: Andrew Morello
Andrew Morello, Winner of The
Apprentice 2009 (Australia)
“If there’s something you
need, go to Alibaba.com
and source the best
possible products at the
best possible price.”
“The major benefit of Alibaba.com is
its simplicity. There are a lot of
supplier websites out there now, but
none as detailed or as simple to use
as Alibaba.com.”
17 17
Welcome to visit Au.alibaba.com
Alibaba.com Australia Fans Page
18
Open Sesame in Sydney
Global Footprints
Thank You &
Join us free today ! www.alibaba.com
www.aliexpress.com
