The Future of E-commerce
Disclaimer
This presentation contains forward-looking statements that involve risks and uncertainties, including statements based on our current expectations, assumptions, estimates and projections about us, our industry and the regulatory environment in which we and companies integral to our ecosystem operate. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements, including those risks, uncertainties and other factors identified in the prospectus under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The forward-looking statements included in this presentation may relate to, among others: (a) our growth strategies; (b) our future business development, financial condition and results of operations; (c) trends in online and mobile commerce, both globally and in the People’s Republic of China (“PRC”); (d) competition in our industry; (e) fluctuations in general economic and business conditions in China; (f) expected changes in our revenues and certain cost and expense items and our operating margins; (g) the regulatory
2
Dr. Ming ZENG
11.11 Shopping Festival : 2013 vs 2014
2014
(2)
2013
Total GMV
(1)
:
vs
RMB 57.1Bn
(US$9.3Bn)
RMB 36.2Bn
(US$5.8Bn)
Time-spending to achieve:
(RMB Bn) YoY Growth (%)57.7%
GMV Growth
4~ 3mins
~ 6mins
~ 14mins
~ 38mins
~ 38mins
> 5 hrs
►RMB 1Bn GMV
Time-spending to achieve:
Note:(1) All 11.11 GMV settled through Alipay
(2) All 2014 11.11 GMV and other figures are subject to final auditing following conclusion of the event.
36.2
57.1
2013 2014
►
RMB 5Bn GMV
36.20
57.11
GMV on 11.11 Shopping Festival (RMB Bn)
11.11 Shopping Festival : GMV
(1)0.05
0.94
3.36
19.10
2009
2010
2011
2012
2013
2014
5 Note:(1) All 11.11 GMV settled through Alipay
(2) The above 11.11 GMV for 2009 – 2012 are unaudited.
What’s going on?
Internet is fundamentally
Internet is fundamentally
transforming business in China
China and U.S. E-commerce Comparison
$297
$339
$298
$395
$488
E-commerce Market (2009A -2015E)
(US$ Bn)
$157
$176
$195
$225
$259
$297
$39
$68
$121
$207
$298
2009A 2010A 2011A 2012A 2013E 2014E 2015E
US
China
28.9%
34.3%
38.3%
42.1%
45.8%
46.9%
China’s Rapid Internet Growth
China’s Internet population grew
>600%
over past ten years
China Internet Population and Penetration
(Million) (%)
80
94
111
137
210
298
384
457
513
564
618
632
6.2%
7.2%
8.5%
10.5%
16.0%
22.6%
28.9%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Internet User Population Internet PenetrationSource: CNNIC
Rapid Growth in China’s Online Shoppers
28.1%
35.1%
37.9%
42.9%
48.9%
52.5%
China Online Shopper Population and Penetration
(Million) %
China’s online shoppers population has grown tremendously
9
34
46
74
108
161
194
242
302
332
24.5%
22.2%
24.8%
28.1%
2006 2007 2008 2009 2010 2011 2012 2013 2014No. of Online Shoppers Online Shopper Penetration Source: CNNIC
Note: (1) 2014 Internet population and penetration rate are as of June 30, 2014
China’s Retail Infrastructure is Weak…
3,810
3,222
23.9
Shopping Mall Penetration
2013
Population
65.8MM
317.3MM
50.2MM
1,361MM
►
Shopping malls in China are much less prevalent than in developed countries
►Vast China’s population is greatly underserved!
1,570
368
12.0
7.3
2.4
France
U.S.
South Korea
China
No. of Shopping Malls Malls per Million People
10
Source:
…but Internet Infrastructure is Strong
China’s Internet penetration rate
(46%) approaches that of
developed countries…
…but the scale of retailer
concentration lags far behind.
UK France Germany South Korea USA
E-commerce steps in to fill the gap!
0% 20% 40% 60% 80% 100% USA Japan Brazil China (Urban) India
Retailer Concentration Internet Penetration (%/Population)
The Big Bang of Taobao
(RMB Bn)
