1 / 32

Global trade starts here. TM

Global trade starts here. TM. Taking sourcing to the next level Leveraging the internet to find suppliers Brian A. Wong International Business Development Division Head, Senior Director.

lev
Download Presentation

Global trade starts here. TM

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Global trade starts here.TM Taking sourcing to the next level Leveraging the internet to find suppliers Brian A. Wong International Business Development Division Head, Senior Director Neither this document nor any discussion relating to it is an offer or a solicitation of any offer to purchase securities in the Company. All information in this document is provided for informational purposes only. Any projections and forecasts included in these materials were prepared based on assumptions regarding facts and future events that may or may not materialize. No representation or warranty of any kind is made by the Company, its management or any other person associated with the Company in relation to any such projections or forecasts or any other information included in these materials, and no reliance may be placed for any purpose whatsoever on the accuracy or completeness of any such projections, forecasts or other information.

  2. Agenda • Sourcing trends • Sourcing tools • Online sourcing challenges • Alibaba.com

  3. Sourcing Trends

  4. Global Sourcing • “Global sourcing will be the next battleground for competition. Within five years, businesses that do not make global sourcing an imperative will be struggling not only to compete but also to survive.” - Aberdeen Group, June 2003 • Increased global competition is driving many firms to identify and establish relationships with suppliers in low wage and low cost countries such as China, India, Malaysia, Eastern Europe, Latin America and Africa. Benefits: • Reduced material, component and manufacturing costs • Lower product cost • Higher product sophistication achieved by better trained workforce and imported technology

  5. Buy Factory Direct • “Whenever you can eliminate folks who along the way have to make their own profit, you can save money.” - Paul Gaffney, Executive Vice President, Supply Chain, Staples, June 2005 • Many large and small-to-medium sized retailers now purchase directly from low cost overseas factories instead of going through sourcing agents, wholesalers and distributors. Benefits: • Increased margins and profits • Reduced cost (no middlemen) • Better knowledge base on products, technologies and markets • Direct involvement in production process

  6. Sourcing Tools

  7. Sourcing today • A survey of Alibaba.com users reflects the shift to e-sourcing has already occurred among some buyer segments • Traditional media, while still used is diminishing in importance as the internet becomes the tool of choice • This trend is likely to continue as e-marketplaces grow in sophistication and functionalities 1 = highest importance 4 = lowest importance Source: Synovate Research

  8. Sourcing Cycle 1 2 3 Discovery Negotiation Transaction

  9. Discovery of/Search for suppliers – 52% Developing/Managing supplier list – 5% RFQ development – 8% RFQ response/receipt – 5% Screening/qualifying proposals – 20% Contract negotiation – 10% Average Sourcing Cycle = 3.3 months to 4.2 months Sourcing Cycle • Discovery (buyers searching for sellers) is the most time consuming and costly phase of the Sourcing Cycle. Source: Aberdeen Group

  10. Online Trading Communities • Reduce time required for Discovery Phase • Fast, efficient and effective • Business-to-business focus • No need to filter through consumer oriented content • Aggregated timely content • Thousands of suppliers/products at one location, updated daily • Research product and supplier information • 365 days a year, 24 hours a day, 7 days a week • Bridge geographies and time zones • Buy factory direct!

  11. Online Sourcing Challenges

  12. Risks of online sourcing Valuable benefits also bring new hazards Type: • Fraud • Identity theft • Scam • Counterfeit goods Precautions: • Use common sense and do not ignore standard due diligence trade practices • Stick with credible marketplaces with pre-qualification services • Confirm contact details of business partner • Consider doing background check using credit check or obtaining certificate of good standing from 3rd party

  13. Trust and credibility Know your supplier • Initial trust is established by quality content provided on website: • Individual company site • Product specifications • Qualifications and industry standards • Some marketplaces offer initial screening by providing third party authentication and validation (A/V) or user feedback systems to pre-screen suppliers • No substitute for traditional due diligence

  14. Alibaba.com

  15. Corporate Introduction • Established in 1999 • Offices locations: Hangzhou, China (HQ), Hong Kong, Europe (Geneva), USA (Silicon Valley), major cities in China • 2004 Revenue*: $68mm • # of Employees: 2,300 • Senior management working together for over 5+ years Alibaba is China’s leading e-commerce company, operating the world’s largest online marketplaces for both international and domestic China trade, as well as China’s largest online consumer marketplace and most popular online payment system, AliPay.

  16. eMarketplaces: Circa 2000 approach Source: California Management Review

  17. eMarketplaces: The Alibaba Approach • A Hangzhou Teahouse • Marketplace provides the “cups, tea and scenic surroundings” to facilitate match-making between buyers and sellers • Customers bring the products and ideas • The more, the better • User generated content: • For members, by members, of members “Attract the shrimps (sic.) and the whales will come,” -Jack Ma, CEO Alibaba.com

  18. AliPay AliPay AliPay Synergistic Communities International Site: Global B2B China Site: Domestic B2B China Consumer e-Commerce Volume Buyers/Importers Consumers Exporters China Wholesalers Retailers/Volume Sellers GMT: US$1.5B GMT: US$3B GMT: US$800MM* *Based on run-rate of $200mm in Q2-05

  19. Enter In August 2005, Alibaba.com and Yahoo! Announced a long-term strategic partnership, by which Alibaba.com would acquire the Yahoo! China businesses and build the Yahoo! China Brand. In addition, Yahoo! Invested US$1 billion and received a 40% stake in Alibaba.com with 35% voting rights.

  20. Awards and Honors Far Eastern Economic Review Forbes Magazine “Best Website for Entrepreneurs” Entrepreneur Magazine “Top Website for Entrepreneurs” Harvard Business School Case Study A & B

  21. A Time-Tested Team 1999 2004

  22. Senior Management Team Jack Ma Founder, Chairman & Chief Executive Officer • Founded Alibaba.com in early 1999 with team of 18 founders • Featured in leading international media (CNN, CNBC, BBC, TIME, Forbes, etc) and was chosen by the World Economic Forum as a "Young Global Leader." Selected by China Central Television (CCTV) as one of the “Top 10 Business Leaders of the Year.” • Former president of MOFTEC’s CIECC InfoShare division • Founder of China’s first internet-based company (Chinapages.com) in 1995 • Graduated from Hangzhou Teacher's Institute in 1988 with a B.A. in English and began his career as an English teacher. John Wu CTO Li Qi COO Joseph Tsai CFO • Joined Alibaba in 2000 serving as VP of Sales and then promoted to SVP of • Chief architect of Yahoo!'s directory search engine and its many applications. • Former VP at Investor AB, the main investment vehicle of Sweden's Wallenberg family • Alibaba International’s Core Business Unit • Former CTO of Chinapages • Founder of Weyei, an internet communications company • Former corporate lawyer at Sullivan & Cromwell, a New York-based international law firm. • Graduated with B.A. in economics from Yale University and Juris Doctor from Yale Law School. • Lead on numerous other Yahoo! Projects related to e-commerce technologies • Former Manager with Oracle’s Server Technology Group • BS from U. of Michigan in Computer Science

  23. Alibaba.com International • Key Information • World’s largest business-to-business marketplace for global trade • 1.5 million members (SMEs) • 200+ countries and territories • 900,000 + trade leads, company postings and product listings • Daily Web Statistics* • 3 million PVs • 2,000 new members • 130,000 inquiries sent to Alibaba.com members • 500 new companies listed • 1,000+ new products listed www.Alibaba.com * Company estimate based on average for month of June 2005

  24. Alibaba.com Marketplace Sourcing platform for buyers: • Easy to use sourcing tools and services • Access to largest base of suppliers from China and around the world • Find and contact suppliers rapidly in a private and secure environment Marketing platform for suppliers: • Active environment for suppliers to promote their company and products • Increase market reach with global visibility • Negotiate with buyers in a private and secure environment • Value added services to raise company profile

  25. Services for Buyers/Importers • Free membership • Search and Browse across Gold Supplier, TrustPass and Free member content • 28 industry verticals • Growing to 50 industry verticals by 2007 • Up-to-date product and supplier data • Manageable by the client • Contact information open to public • Online inquiry service • Management tool • Inquiries • Trade Leads • Trade Alerts

  26. Where Are the Alibaba Buyers? All Over the World – A Global Marketplace Canada 4% Europe 21% India 7% China 4% Hong Kong 4% United States 21% S.E.Asia 5% Singapore & Malaysia 4% Australia 3% Other 27%

  27. Services for Sellers/Exporters • Membership tiers: • Gold Supplier • TrustPass • Free • Access to over 500,000 active buyers • Search and browse Buy Trade Leads • Buyers’ contact information open to seller members • Online inquiry service • Respond to RFI • Respond to RFQ • Management tool • Website • Inquiries • Quotations • Trade Leads • Trade Alerts

  28. Export community for premium pre-qualified China suppliers Only sold in China Gold Supplier content across 28 industries Content updated daily New products New suppliers Authenticated and verified by 3rd party credit service Gold Supplier Members

  29. TrustPass International membership is awarded to members whose business identity and employment are verified Features: Authentication & verification by leading credit agency Trust reference Certificates and awards Posting history TrustPass Members

  30. “I have published a buy lead on Alibaba.com and got a number of very good offers. I eventually selected a China Gold Supplier and we have entered a long term partnership. I am very pleased with Alibaba and I like in particular the fact that I can put my buy request online and let the suppliers come to me”. Mark Winter, M.W. Trading & Supply, UK Member Testimonial

  31. Member Testimonial • Mr. Chris Kittles, Global Sourcing Manager for Fleet Pride, Texas, USA • Alibaba Member - 1+ years • Annual imports from China: US$10 million • Uses Alibaba weekly to source Auto Parts. • Recently placed US$300K+ in orders with suppliers discovered on Alibaba.com.

  32. Thank You!Brian A. Wongbrian@alibaba-inc.com

More Related