AliExpress: An opportunity for Central and Eastern Europe

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Presentation transcript:

AliExpress: An opportunity for Central and Eastern Europe

Today’s Agenda E-Commerce Lessons from China 1 2 2 E-Commerce Lessons from China AliExpress: An Introduction Our Social Commitments Confidential 2018/11/9

Change is the law of life and of the digital age… “…E-commerce is rapidly becoming a traditional business; pure e-commerce players face tremendous pressure…” Jack Ma Confidential 2018/11/9

1 E-Commerce Lessons From China

E-commerce now ~16% of China’s total retail sales Confidential 2018/11/9

China is leading all other regions in terms of e-commerce Confidential 2018/11/9

Outbound e-commerce trade (RMB 100mns) Cross-border e-commerce is growing particularly fast 34% CAGR growth expected in Chinese outbound e-commerce between now and 2020 Outbound e-commerce trade (RMB 100mns) Confidential Source: AliResearch 2018/11/9

Mobile is quickly replacing desktop as preferred method for users to engage with internet Confidential 2018/11/9

Average user opens Taobao mobile shopping app > 7x a day because it is entertaining and social Confidential Source: Taobao 2018/11/9

Related industries are also evolving (quickly) Confidential 2018/11/9

Meaning China is a leader in the “new finance” Confidential Source: Financial Times 2018/11/9

But the “new finance” is not just payments Wealth Management Credit rating Insurance Credit services Confidential Source: Alipay 2018/11/9

China is also developing a “new logistics” Cainiao’s platform based logistics model allowed over 12bn packages to be delivered in the year ending March 2016: Confidential 2018/11/9

All this is made possible by big data Alibaba big data enabled ecosystem: 2018/11/9

So how to thrive in this changing environment? 1) Embrace mobile to better engage with your users 2) Give your users more than just a shopping experience; entertain 3) Be the disruptor; no industry is safe from change in the digital age 4) Big data is the new natural resource; use it to make better decisions Alibaba compare to Walmart: http://revenuesandprofits.com/alibaba-vs-walmart-fiscal-year-2016/ Another resource: http://www.zerohedge.com/news/2016-04-06/alibaba-surpasses-walmart-largest-retail-company-world Resource: (Officially from Alibaba group) http://www.alizila.com/alibaba-top-ranked-retail-brand-world-2/ http://www.alibabagroup.com/en/news/press_pdf/p150507.pdf Zero Hedge: Confidential 2018/11/9

2 AliExpress

With a 7 year journey to 100mn buyers 2013 2012 Dec 2012 2011 Jul 2010 Sep 2009 2017 Apr 2010 Test version of AliExpress is launched Over 100k sellers on AliExpress AliExpress becomes the number one online shopping platform in Russia Sellers with annual sales over $10m start to appear AE Russia established AliExpress is launched Localized Brazilian site established AliExpress reaches 100 million buyers Mar 2015 France becomes a top five market Nov 11st 2015 Over 21.24 million cross-border orders Confidential 2018/11/9

AliExpress is increasingly mobile AliExpress is one of the most downloaded apps on both iTunes and Google Play: iTunes: AliExpress is ranked number one in 23 markets, and among the top five in 102 markets. Google Play: AliExpress is ranked number one in 22 markets, and among the top five in 66 markets. Editors’ Choice: AliExpress app given Google Play Editor’s Choice award in January 2017 Confidential 2018/11/9

Including in the Central & Eastern Europe region AliExpress desktop and mobile penetration is increasing across Central and Eastern Europe: Top 3 retail website and Google Play top 3 most downloaded retail apps in Hungary Top 3 retail website and Google Play top 3 most downloaded retail apps in Poland Top 3 retail website and Google Play top 5 most downloaded retail apps in Czech Republic Top 3 retail website and Google Play top 3 most downloaded apps in Slovenia Confidential Sources: Alexa, Sensor Tower as of May 11th 2017 2018/11/9

With entertaining, socially focused content Confidential 2018/11/9

AE enables innovative new payment methods Confidential 2018/11/9

That improve our buyers’ experience AliExpress Netherlands payment success rate increased over 5% after Ideal was added as a payment method Confidential 2018/11/9

AE manages complex logistics challenges at scale Single’s Day 2015 (11.11.2016): On this day, AliExpress produced ~$36 million cross-border orders covering 224 countries and territories, a new record in the company’s history. Logistics: AliExpress uses a global network of logistics partners and Cainiao’s data driven logistics platform to meet the challenge of delivering packages at such large volume. Confidential 2018/11/9

3 Our Social Contribution

Smarter shopping, better living in Russia Video: https://www.youtube.com/watch?v=jFCq-deGzF8 There is one blogger who has a real story. Her grandma has hearing problems. She needed a hearing device. But because she lives in a village there is not much choice. The devices in offline shops cost 50 usd, but on AliExpress you can find it for 6 usd. So the blogger bought it for her grandma, they even went to check with the doctor if the device was fine. All is well now, they don’t need to shout when they talk with grandma, she can hear much better. Confidential 2018/11/9

Improving logistics capability in Russia AliExpress collaborated with Russia Post to improve their logistics capability and reduce a 2-3 month backlog; improving daily packages processed by over 7x Video: https://www.youtube.com/watch?v=jFCq-deGzF8 There is one blogger who has a real story. Her grandma has hearing problems. She needed a hearing device. But because she lives in a village there is not much choice. The devices in offline shops cost 50 usd, but on AliExpress you can find it for 6 usd. So the blogger bought it for her grandma, they even went to check with the doctor if the device was fine. All is well now, they don’t need to shout when they talk with grandma, she can hear much better. Confidential 2018/11/9

Supporting the UN SDG through Ant Forest Video: https://www.youtube.com/watch?v=jFCq-deGzF8 There is one blogger who has a real story. Her grandma has hearing problems. She needed a hearing device. But because she lives in a village there is not much choice. The devices in offline shops cost 50 usd, but on AliExpress you can find it for 6 usd. So the blogger bought it for her grandma, they even went to check with the doctor if the device was fine. All is well now, they don’t need to shout when they talk with grandma, she can hear much better. Confidential 2018/11/9

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