When You Are In Rome, Do As Romans Do

After 2014 September, one of the questions being asked frequently by people out of China is (that) what is Alibaba. Even the people being asked is coming from China, it might take her or him a while to answer the question because Alibaba is a life style and to be more exact, it is part of our generation’s life. It’s hard to say it’s just a company and since it changes so fast day after day, any simplified description of Alibaba and or its business can be limited and lack of accuracy.

In China, all export and import business have or had Alibaba product & service. ” There is a company I know does not use Alibaba.” Well, I am sure your are telling the truth but I am 100% sure about that either this company no longer existed or it won’t last any longer. A picture we should have in mind when we talked about Alibaba is that companies of different sizes and industries embraced and appreciate the changes Alibaba has brought to the business as much as Chinese public, aged from 8 to 80, who purchase or sell products of almost all categories (taobao.com, Tmall.com.) Not only buy and sell, people use Alibaba pay (Alipay) only on Alibaba stores but also in all the other e-commerce.

Based on resource from wikipedia, Alibaba Group Holding Limited (NYSE: BABA) is a Chinese e-commerce company that provides consumer-to-consumer,business-to-consumer and business-to-business sales services via web portals. It also provides electronic payment services, ashopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a business-to-business portal to connect Chinese manufacturers with overseas buyers. In 2012, two of Alibaba’s portals handled 1.1 trillion yuan ($170 billion) in sales.The company primarily operates in the People’s Republic of China (PRC), and at closing time, on the date of its historic initial public offering (IPO), 19 September 2014, Alibaba’s market value was measured as US$231 billion. In September 2013, the company sought an IPO in the United States after a deal could not be reached with Hong Kong regulators. Planning occurred over 12 months before the company’s market debut in September 2014.

Alibaba’s consumer-to-consumer portal Taobao, similar to eBay.com, features nearly a billion products and is one of the 20 most-visited websites globally. The Group’s websites accounted for over 60% of the parcels delivered in China by March 2013, and 80% of the nation’s online sales by September 2014. According to Zhang Yu, the director of Taobao, the number of stores on Taobao with annual sales under 100 thousand yuan increased by 60% between 2011 and 2013. Over the same period, the number of stores with sales between 10 thousand and 1 million yuan increased by 30%, and the number of stores with sales over 1 million yuan increased by 33%.Taobao’s total sales (including Tmall) exceeded 1 trillion yuan (USD 160 billion) in 2012. And on 11 November 2012, the biggest online shopping promotion activity, Taobao accomplished 19.1 billion yuan (USD 3.07 billion) sales in one day. Tmall.com was introduced in April 2008 as an online retail platform to complement the Taobao consumer-to-consumer portal and became a separate business in June 2011. As of October 2013 it was the eighth most visited web site in China,offering global brands to an increasingly affluent Chinese consumer base.

See Alibaba as phenomena rather than a business unit would help investors outside of China to make wise and effective decisions at some point. See Amazon’s strategy recently might be helpful in understanding these better.



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