Decoding Ali Investors Conference: Over 10 trillion Consumption Scale in the Next Five Years

category:Finance
 Decoding Ali Investors Conference: Over 10 trillion Consumption Scale in the Next Five Years


In the past quarter to June, Alibabas revenue grew by 42% and 56% over last year, exceeding market expectations. Institutional analysts expect Alibaba to maintain strong growth in fiscal year 2021. Alibaba believes that the model presented by its commercial operating system has been fully validated in the market, and its future strategy will focus on three areas: globalization, domestic demand and large data cloud computing.

Over the past two years, Taobaos monthly active users have increased by 226 million, and its annual active consumers have increased by 208 million. In the past six quarters, mobile Taobao Daily Active User (DAU) growth has increased quarterly. At the meeting, Jiang Fan, president of Taobao Tianmao, said, In the past two months of July and August 2019, the DAU of Taobao has increased by 26% year on year.

In the volume of nearly 300 million DAUs per day this year, the platforms DAU also has an accelerating growth trend, which is the most important basis for platform transactions and revenue. In addition, it is noteworthy that in the past two years, the growth of users of Taobao Tianmao has mainly come from the third and fourth tiers and below, 70% of new users are from the sinking market, and the penetration rate of Taobao Tianmao in the sinking market has reached 40%.

In the sixth census, consumers in the third-tier cities and below accounted for more than 70% of the countrys total, while GDP accounted for 59% of the countrys total. At the same time, three-tier cities and below contribute two-thirds of Chinas economic growth. Such a huge sinking market is undoubtedly the source of living water for Internet users, and more noteworthy is their strong consumption capacity. In the first year of landing on Taobao Tianmao Platform, new users in the sinking market consumed more than 2,000 yuan. Jiang Fan revealed.

In response, Oppenheimer Fund said that the growth and monetization of the sinking market were higher than expected. At present, Alibaba has been regarded as the preferred investment target in the Chinese market, because consumption trend-driven growth makes Alibaba reflect anti-cyclical ability in a complex environment. Mizuho Bank of Japan also expressed the same view.

In addition, the 5G era will bring about further consumption upgrading. Jiang Fan made a further outlook on this. He took the shopping scene of 5G era as an example to illustrate that in the future, consumers only need to stand in front of the mirror, which will display a 3D model, and consumers can change their clothes with one button. In the future, Taobao shopping clothes is no longer to see how models wear, the seller show is the buyer show, experience more real.

Accelerating the Global Distribution

Not only did it create domestic demand in the declining market, but Alibaba also said it would further promote the strategy of globalization and big data cloud computing. Take the novice bird as an example, at present, the novice bird has opened the global delivery business, and global transportation has taken a key step. Newbies import through bonded warehouses, so that parcels to achieve the next day, the global network of parcels is progressing rapidly. Newbie exports serve more than 75% of global express orders and open overseas warehouses in many countries.

Wan Lin, president of newbie, revealed at the meeting that the digital Intellectualization Technology of newbie has become a powerful accelerator of the National Express package service. Nearly 100 million parcels a day are using newbie technology services, and the average delivery speed of parcels increased by nearly five hours in the first half of this year.

In addition, the number of new bird wrapping service users has increased by more than 100% year on year, which is four times the number of the second similar products. More than a third of the returned and exchanged parcels on Alibabas China Retail Platform are sent by novice wrapping, Wanlin further said.

It is noteworthy that after Alibaba has completed its wholly-owned acquisition of Koala, an independent cross-border e-commerce platform, Tianmao International and Koala will form a dual-brand strategy. According to the information provided by Alibaba, the two brands will serve more global brands together, tap more import consumption demand and accelerate the process of Alibabas import strategy.

Liu Peng, general manager of Tianmao Import and Export Group, revealed that up to now, the number of overseas brands stationed in Tianmao International has exceeded 22,000, covering more than 4,300 product categories. The products come from 78 countries and regions, and the annual number of overseas club brands has increased to more than 80. It will be an important source of long-term and rapid growth of Chinas import consumption in the future.

Earlier, on the 20th anniversary of Alibabas founding, Zhang Yong, chairman and CEO of Alibabas board of directors, announced that in the next five years, Alibaba will continue to grow through the platform to achieve consumption of more than 10 trillion RMB. Only by reaching this stage goal can Alibaba truly move towards its long-term goal of serving 2 billion consumers worldwide by 2036, creating 100 million jobs and helping 10 million small and medium-sized enterprises make profits.

At the conference, institutional investors believed that the growth rate of Alis core business would still be better than expected and higher than the industry average. Royal Bank of Canada expects Alibabas active users, consumers and GMV to maintain rapid growth, super strong business model, leading data and cloud computing capabilities are all factors for investors to remain optimistic.

Source: Responsible Editor of 21st Century Economic Report: Yang Bin_NF4368