Empowering Sm Es Worldwide

Empowering SMEs Worldwide:The Alibaba Story

Arthur ChangVice President in Global Sales Alibaba.com

IV INSME Association General Assembly

2nd July 2008

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An Unlikely Story. . .

Tea HouseHangzhou, China

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A Hangzhou Teahouse• A marketplace provides the “cups, tea and scenic

surroundings” to facilitate match-making between buyers and sellers

• Customers bring the products and ideas• User generated content:

For members, by members, of members

“Attract the shrimps (sic.) and the whales will come.”

E-Marketplaces: The Alibaba Approach

Jack Ma CEO Alibaba.com

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World’s No.1 Online B2B Marketplace for International & Domestic Trade

Note:1. Company data as of Dec 31, 2007

Alibaba.com represents a phenomenon which is changing the way SMEs around the world conduct business

Sellers

International Marketplace

4.4 million registered users (1)

International Marketplace


China Marketplace


China Marketplace


Across more than 200 countries

Companies of all sizes

Diverse end markets

Typically SMEs

Ten to a few thousand employees

5,000+ product categories in 30+ industries

Buyers

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Alibaba.com- from SME, and for SME

Employees: More than 10,000Offices: Hangzhou (HQ), Beijing, Hong Kong, Silicon Valley (US), Geneva (Switzerland), plus 30+ sales offices across China

1999 2008

Employees: 18Office in Jack Ma’s Hangzhou apartment

Since its inception more than 9 years ago, Alibaba.com has grow at an amazing rate

•IPO on HKSE (Nov 6)•Over 27.6 million registered

members•Over 1 billion RMB profit

•Over 5,000 employees

•Alibaba founded in Jack Ma’s apartment in Hangzhou by Jack & other 18 founders,

started from 500K RMB

•SOFTBANK and Goldman Sachs become venture b

ackers

•Company breaks even

•1 million RMB

revenue daily

•1 million RMB profit daily

•1 million RMB tax

paid daily

•Over 1 million registered members

Alibaba.com’s Growth: a SME Innovation Story

Seed: (idea)

Innovative Technologi

es with Good

Market Potential

Sprouts (product):

Entrepreneurial Team

Growth seedlings:Market:

High Growth Innovative SMEs

Tree: Scale up

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Raised US$1.7 billion, the world’s 2nd largest Internet IPO after Google

US$180 billion in subscription monies frozen, more than any other HK IPO

Price jumped 193% in the 1st day of trading, best IPO performance in 10 years

China’s biggest Internet company by market capitalization

Asia’s 2nd biggest Internet company

World’s 6th biggest Internet company

Alibaba.com’s IPO

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Big SME* market

In China : 42 million SMEs

In Europe: 23 million SMEs

In US: 22 million SMEs

Critical to global economy and trade

In China: 58% of GDP, 68% of import and export volume, 75% of employment

In Europe: over 50% of GDP, 60% of employment, over 100 million jobs

In US: over 50% of GDP, 67% of export volume, 67% of employment

* SME means all employer firms, self-employment nonincorporated and incorporated.

All About SMEs!

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Alibaba’s Vision

让天下没有难做的生意To Make It Easy To Do Business Anywhere

商人都要用阿里巴巴To Be an Essential Partner to All

Businesspeople

建立一家持续发展 “ 102 年”的公司To Build a Company that Lasts “102 Years”

Marketplace

Community

Long Term Vision

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Global Network at Your Fingertips

e-marketplace

e-marketplace

Retail shops

Manufacturers

Trading agents

Global Buyers

Manufacturers

Trading agents Global Suppliers

Export

Import

A truly global network for importers and exporters of raw materials, component parts and finished goods

Recognition by Global Thought Leaders In a Different League from Its Peers…

Forbes Magazine“Best of the Web”

2000 - 2006

US Entrepreneur Magazine

“Best Website for Entrepreneurs”

June 2004

Far Eastern Economic Review“Best Global B2B

Marketplace”2000

HBS Case Studies2000 and 2001

Business for Diplomatic Action

CIA’s World Fact Book

Economist Intelligence Unit

The World Bank’s Doing Business Database

U.S. Department of Commerce’s International Trade Administration

UNCTAD Information Economy Report 2007-8

“Best sites for global entrepreneurs”

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A Premier Global Brand

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Alibaba.com’s International Marketplace

South America 3%

India 8%

China 7%

South East Asia 13%

EU 9%UK 6%

US 18%

Middle East 4% Australia 3%

Canada 3%

With over 4.4 million registered members from 200 countries & regions, it’s truly a global community

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Shaoxing

Beijing

Tianjin

Dalian

Qingdao

Chongqing

Wuhan

Nanjing

Hong Kong

Anhui

Shenzhen

Jiaxing & HuzhouChengdu

Shijazhuang

Changzhou

ShanghaiSuzhou

NingboJinhua Taizhou

WenzhouFuzhou

FoshanZhongshan

XiamenDongguan Longgan

g

Hangzhou

Guangzhou

Japan

EuropeAfricaAnd

Middle East(Geneva)

Hong Kong(Global Operation Center)

India

Alibaba Global Offices

America(Silicon Valley)

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Search

Alibaba International - B2B

Alibaba China - B2B Taobao – C2C & B2CShop

Choose

Transact

Pay

Integrated eCommerce Platform

China Wholesalers

Overseas Buyers/Importers Consumers

Exporters China Wholesalers Retailers/ Power Sellers

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Technology: harness ICT and e-commerce with low entry

barrier and cost Financing: provide online platform for SME financing (in

China): credit loan, VC matchmaking and etc. Trainings: capacity building activities and events for SME’s

management expertise, entrepreneurial spirit and etc.

Alibaba empowers SME innovation in enterprise competitiveness, market outreach, financing and more

…in the process help empower SMEs all over the world

Alibaba’s Approach to Promote SME Innovation & Entrepreneurship

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The 2nd APEC Business Advisory Council SME Summit

Initiated by ABAC, China Council for the Promotion of International Trade (CCPIT), the

Hangzhou Government and Alibaba Group

The 2nd ABAC SME Summit to be held in Hangzhou from 2-3 August 2008

Showcases the innovation, dynamism and future prospects of SMEs in the Asia-Pacific region

Focus on three themes: IT, Training and Financing, which are crucial to the growth and development of SMEs (e.g. discussion of Venture Capital on SME’ development and ��solution to SMEs Financing)

VIPs including Mr. Masayoshi Son (CEO of Softbank Capital), Mr. Muhammad Yunus and etc.

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Annual Global e-Business Champions of the Year Contest

Since 2003, Alibaba recognizes and promotes successful e-commerce usage with an award

The awards aim at educating SMEs how to benefit from innovative utilization of ICT and e-commerce

The annual contest recognizes the trustworthiness, passion, achievement, innovation and social responsibility of entrepreneurs and SMEs using the Internet as a tool to do business.

Winners’ success story highlight: How e-commerce is changing the way business works globally; What new business opportunities can be created using e-commerce; Innovation, global reach, true business success

Alibaba.com Partnerships

and is looking for more partners including public-private partnerships!

Alibaba.com cooperates with leading organizations all over the world. . .

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Action Proposal with Partners

International Free Membership for all partners’ SME members to promote them worldwidePromote partner organization worldwide through banner, link, and etc. Provide tools such as search bar, trade alerts and etc. on partner websiteContent exchange about SME related subjects such as innovation etc. Joint event, etc to educate e-commerce, SME innovation and etc. Discounted paid membership with value added service for partner’s SME members

Partners offers:Alibaba offers:

Promote Alibaba locally through banner, link, and etc.Content exchange about SME related subjects such as innovation etc. Joint event, etc to educate e-commerce,SME innovation and etc.

To achieve the win-win results and long term partnership

Partnership Building•1.

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SME Success Story with Alibaba

I started my business at the same time as Alibaba.com showroom. In our first year Alibaba contacts and leads brought to us USD300,000 and our website USD400,000. Without online show room our market visibility would have been much less.

In October 2005 we launched the USB stick battery charger. This was an innovation which required our R&D department to undertake a lot of research and work. Our expectations were big.

The high on-line visibility offered by Alibaba offered a very fast launch of this new product and 200,000 pcs orders were dispatched to 8 countries within the next 30 days. OEM followed with key customers in Germany and USA.

This on-line launch of new product through Alibaba helped us to reach thousands of buyers at a critical time. New orders are now repeated and expanded to other product ranges. From one product promotion we developed an entire range. The customers have an image from EverFast as being a innovative and responsive company.

Member: Mr. Charles D’HaussyCompany: EverFast Rechargeables Ltd.

“Alibaba brought us thousands of buyers!"

•04/11/23 22:31 •21

Video: “I’m an Alibaba member!” –

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Thank you!

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