Since last November at the Hong Kong Stock Exchange has been a new action Alibaba, but last year the two moves is cause for concern.
May 12, Alibaba and Intel alliance age of electronic commerce for SMEs launched e-commerce dedicated computer, the two sides reached a strategic cooperation.
May 15, Alibaba and Softbank in Japan announced a joint venture company "Alibaba Japan." The move was seen as an important step towards globalization Alibaba.
Alibaba baked before the 2007 annual report, its operating income from 2006 to 1.3639 billion yuan, up 58.6% to 2.1628 billion yuan in 2007; net profit jumped more than 340% in 2006, reaching 967.8 million yuan . Analysts also believe that in order to measure income, Alibaba's market share from 67% in 2006 to 74%, continued strong expansion momentum. In the Annual Report on the same day, David Wei, CEO of Alibaba B2B revealed to the media its 2008 three strategic key words: globalization, e-commerce infrastructure and Alibaba business ecosystem.
To work with Intel
May 12, Alibaba.com and global IT giant Intel announced the launch of SME e-business alliance dedicated computer. It is learned that the product will be the strategic level Alibaba latest product - "SME e-business infrastructure platform" for small and medium embedded in the commercial development of computers, by Intel areas tailored for SMEs advanced data security and remote services. Related to the industry that this section of the advent of computers is expected to enable the SMEs to obtain low-cost one-stop e-commerce services possible.
According to report, China now has more than 42 million SMEs, but in which, with enterprise-level Web site less than 2%, using enterprise-class mail for only 10%, a large number of enterprises are businesses with personal application of alternative e-business applications. For example, the use of computers for personal consumption, use of free public mail, or even use personal space as a business platform for display. "They can not adapt to corporate image display and pioneering e-commerce needs." Wei, "economic", told reporters that speed the construction of the basic platform for SMEs has been decided to speed the development of China's key e-commerce.
Wei, also said that after the alliance with Intel, Alibaba also welcome more PC hardware manufacturers, the majority of third-party e-commerce businesses and more organizations and individuals to e-commerce among the ecological chain. It is learned that after the two sides will be chosen according to the actual needs of SMEs for the PC manufacturer is responsible for the production and sale of specific products will be launched before the end of the year.
The Alibaba and Intel's collaboration can be called what they want. In China, more than 42 million SMEs account for more than 90% market share, no one can ignore the small and medium enterprises in this huge "tail" of the strong force. In recent years, the past, large customer-centric multinational giants have begun to have great importance to SMEs market. But how involved in the huge, messy and complex SME market for these multinational giants is quite a headache.
For Alibaba, the cooperation with these international giants in the field can open up and expand from a different e-commerce related links to further consolidate its market leading position. Alibaba Group CEO Jack Ma has said, "What if we want to do it themselves, it would not achieve anything. We have come to establish a service for SMEs the importance of the ecological chain, so in conjunction with other efforts the vendor for SMEs. "this year, Alibaba has been successively with Intel, Microsoft, Cisco and other international giants to reach a comprehensive strategic cooperation.
For both sides in the partnership, David Wei used the image of the metaphor, the equivalent of Alibaba online platform, a Wangfujing (love stock market, information) Avenue, with sufficient traffic guarantee. The SMEs in this street can choose to set up their own shop, you can also choose from the Alibaba team to help them build. Alibaba and Intel in the computer products, software will be embedded Alibaba achieve the latter set up shop and house number for the payment of these users, Intel will be responsible for utilities access, and play a security role.
Alibaba is the confidence for the data traffic supported. According to "Alibaba in 2008 first quarter earnings report" shows that two of its online trading market in the first quarter a total of 29.7 million registered users, up 37.3% over last year, accounting for more than 70% of SME market share . Online business shop market total to 3.2 million, representing growth of 44.7% over the same period last year.
Many industry analysts believe that the two sides will promote cooperation in the SME channel integration and maximum utilization of resources.
Internet industry analyst at CLSA Liangxiang Yi in an interview with our correspondents said, through cooperation, the company was able to provide more comprehensive B2B website service. Because of the loyalty of their customers before the lower, liquid, in order to retain customers and to provide more software services to help customers better manage inventory, manage customer relationships. Through the cooperation with Intel to provide enterprise-class software services that can enhance customer loyalty Alibaba platform.
However, to successfully open the SME market is not easy. Yang, general manager of Intel China Region, told reporters Syria recognized 10 years, PC companies have been in the field of SME market for the launch of a dedicated computer products, but few successful cases. Alibaba's business applications to small and medium enterprises can also open up a world for themselves remains to be seen.
Proudly Globalization
Maintaining industry-leading position in the same time, the company was also actively promoting its global strategic objectives. May 15, Alibaba and Softbank in Japan announced a joint venture company "Alibaba Japan." It is reported that the joint venture company, Softbank invested 20 million U.S. dollars down the yen equivalent of cash, accounts for 65% of shares, the company was not provided with any cash invested, accounting for 35% shares. Alibaba into Japan's unique model revealed distinct global strategy.
Wei, expressed: "Alibaba's internationalization process, and unlike others, we will work closely dependent on overseas local partners. With Softbank in Japan joint venture, we accounted for 35% stake, Softbank accounting for 65%. We no cash investment, can allow partners to share our success, but also reduce the process of internationalization of our financial investment risk. "
It is understood that the joint venture Alibaba While no cash investment, but by the end of December last year for Japan, Japanese SMEs to re-create the Alibaba website, its platform, technology and customers will be transferred to the joint venture. In addition, Alibaba will also authorize the only to use the joint venture in Japan, Alibaba's trademark and domain name. Japan, Alibaba will first focus on products imported from Japan, China and the global cross-border trade, then the focus will be extended to Japanese exports and domestic B2B trade in Japan.
In a little before the May 6, Alibaba has just announced India's largest Yellow Pages guide and professional publishers Infomedia India Limited as a long-term strategic partnership, the two sides plan to further expand its market share in India's B2B e-commerce. Prior to this, Alibaba has been opened specifically for Indian customers of Indian channels, but the strategic partnership with Infomedia, Alibaba will have a strong local partner to provide sales, marketing and customer services support. The partnership is expected to make before the end of Alibaba in 2008 to become India's leading B2B online trading market, this also means that Alibaba.com, a comprehensive strategy for emerging markets to upgrade.
David Wei told reporters said: "In the process of overseas expansion, we will model the Japanese market as buyers representatives of India as the representative of the seller market model, as long as do the two overseas expansion mode, you can use these experience of successfully copied to Europe, America, Southeast Asia, a number of countries. "
In fact, the company was already in the market before the layout of international strategy. April 2007, the company was set up in Hong Kong SAR customer service and consumption centers. October, Alibaba set up European headquarters in Geneva, Switzerland, and the first European customer service center, the main target customers concentrated in the United Kingdom, Italy, France, Turkey, Germany. December, Alibaba and General Electric reached a depth of strategic cooperation. So far, the company was already the most densely populated Asia, Europe, the Americas three continents and established its own customer service center, also completed the Ma of "Alibaba's global development, the United States, Japan and Europe, these three markets must not lost "expectations.
Industry insiders believe that, Alibaba Group's global operations already clear that they will help in Japan and Yahoo Japan, Softbank local dominance of the Internet, while in the United States and Europe, its strategic partnership with Yahoo will better enhance and promote Alibaba overseas influence.
Others have put forward different views. Liang Xiangyi that Alibaba's business model is simple, there is still a big gap with eBay. Many people browse the Web, but not physical online transactions, many transactions are completed offline, online payment habits of SMEs do not develop. So, she thought even though the market has great potential, but Alibaba long way to go.