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Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

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Page 1: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This
Page 2: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This
Page 3: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

Rural Taobao presence and population structure.

Provinces with Rural Taobao presence

Our Opportunity

55%45%

Urban Population

Rural Population

Page 4: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

We plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This covers 1/3 counties and 1/6 villages in China.

AliResearch estimates online consumption in rural China will reach RMB1 trillion by 2020.

Rural Taobao

Rural life digitalization and big data infrastructure

Urban-rural Integration

Entrepreneurial and employment opportunities

Our Mid-term VisionEnable rural residents greater access to a broader variety of goods and services

Help farmers earn more by selling agricultural products directly to urban consumers

Page 5: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

GovernmentCooperation

with localgovernment

E-commerce: buy and sell Services: smart rural

Rural Taobao EcosystemBIG DATA

Talent

Rural Taobao PartnersInfrastructure

Logistics and information

infrastructure

Page 6: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

Cooperate with local governments.

Government

Page 7: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

Information flow.

Last-mile logistic buildout coordinated with Cainiao Network.

Financing services provided by Ant Financial.

We have presence in over 16,500 villages in 333 counties, covering 27 provinces, with our Rural Taobao service centers.

Infrastructure

Page 8: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

Rural Taobao Partners - we build stage for young people to go back to their hometowns to start their own businesses.

Rural Taobao Partners run the service centers that provide purchasing and delivery services. Commission incentives - interest aligned.

Talent

Page 9: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

We help rural consumers enjoy the same selection of goods and services at prices available to their urban counterparts.

Ecommerce - Buy

Page 10: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

We help farmers sell agricultural products directly to urban consumers, eliminating the inefficient supply chain.

Ecommerce - Sell

Page 11: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

Public Services

Rural Taobao is not only a business service center, but also a cultural service center .

Page 12: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This

Goals for 2017

Cover 600 counties and 40,000 villages Cover 200 counties

Smart Rural

Rural Taobao APP connects city and rural

ChannelsService Centers

Page 13: Our Opportunity - Alibaba Groupalibabagroup.com/en/ir/pdf/160614/09.pdfWe plan to establish service centers in 100,000 rural villages from 1,000 counties in the next 3-5 years. This