Alibaba Group Holding Limited is a Cayman Islands holding company established under the Companies Law of the Cayman Islands on 28 June 1999. Alibaba Group Holding Limited is a China-based company with several subsidiaries worldwide. It is the largest online E-commerce site, and was founded as a small enterprise in the belief that the Internet would play vital role to increase small businesses and growth, as well as to compete more effectively in the domestic and global market.
The company’s businesses comprise core commerce, cloud computing, digital media and entertainment, and innovation initiatives. In addition, Ant Financial – an unconsolidated related party – provides payment and financial services to consumers and merchants. A digital economy has developed around platforms and businesses that consists of consumers, merchants, brands, retailers, third-party service providers, strategic alliance partners, and other businesses.
Company’s Operating Segments
- Core Commerce
- Retail Commerce
- Retail commerce in China
The company is the largest retail commerce business in the world, and operates in Taobao marketplace, which is China’s largest mobile commerce destination with a large and growing social community, and Tmall, which is the world’s largest third-party online and mobile commerce platform for brands and retailers.
- Retail commerce — cross-border and global
Lazada’s is the leading E-commerce platform across Southeast Asia, with provision of local language mobile apps and websites to serve customers in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. AliExpress enables consumers from around the world to buy directly from manufacturers and distributors in China, as well as around the world. Tmall Global – allows overseas brands and retailers to reach Chinese consumers, and is the largest import E-commerce platform in China.
- Wholesale Commerce
- Wholesale commerce in China
1688.com – China’s leading integrated domestic wholesale marketplace – connects wholesale buyers and sellers spanning a wide range of categories. Lingshoutong – a digital sourcing platform for retailers – connects fast moving consumer goods, or FMCG, brand manufacturers, and their distributors directly to local mom-and-pop stores in China.
- Wholesale commerce — cross-border and global
China’s largest integrated international online wholesale marketplace. As of 31 March 2019, the buyers on Alibaba.com are located in over 190 countries globally.
- Logistics Services
Cainiao Network’s logistics data platform and global fulfilment network primarily leverages the capacity and capabilities of logistics partners. It offers domestic and international one-stop-shop logistics services and supply chain management solutions, fulfilling various logistics needs of merchants and consumers at scale, serving the digital economy and beyond. It facilitates the digitalization of the entire warehousing, fulfilment, and delivery processes, thereby improving efficiency across the logistics value chain.
- Consumer Services
The company offers mobile and online technology for enhancing efficiency, effectiveness, and convenience of consumer services for both service providers and customers. The company’s technology – Ele.me – is a leading on-demand delivery and local services platform, developed to enable consumers to order food and beverages through a mobile app anytime and anywhere. Koubei is a leading restaurant and local services guide platform for in-store consumption. Fliggy is a leading online travel platform, providing comprehensive services for consumer’s travel needs.
- Cloud Computing
Alibaba Cloud is global Infrastructure-as-a-Service (IaaS) player, and was also China’s largest provider of public cloud services in terms of revenue in 2018, including Platform-as-a-Service (PaaS). Alibaba Cloud offers a complete suite of cloud services, including elastic computing, database, storage, network virtualization services, large scale computing, security, big data analytics, a machine learning platform, and IoT services.
- Digital Media and Entertainment
Digital media and entertainment is a natural extension of the company’s strategy to capitalize on consumption volume beyond its core commerce businesses. Insights the company gains from its commerce business and proprietary data technology enable it to deliver relevant digital media and entertainment content to consumers. The strategy helps to deliver a superior entertainment experience, increases customer loyalty, return on investment for enterprises, and improves monetization for content providers.
- Innovation Initiatives
- In March 2019, Amap became the largest provider of mobile digital map, navigation, and real-time traffic information in China, which is used by monthly active users in. Amap provides these services to end users directly and operates a leading open platform in China that powers major mobile apps in different sectors, including for food delivery, ride service, taxi-hailing, and social networking with big data-enabled digital mapping technology. In addition, Amap offers digital map data, navigation software, and real-time traffic information to international and domestic automobile manufacturers and aftermarket consumers in China.
- DingTalk was the largest business efficiency app in China by monthly active users in March 2019. Dingtalk is a digital working platform that serves enterprises and organizations of various types and sizes with unified communication services, intelligent mobile workplaces, and network collaboration services. Through both PC and mobile devices, DingTalk provides a unified interface for communications in different forms such as text messages, photos, audio, videos and email, workflow managements and network collaborations.
- Tmall Genie is an AI-powered smart speaker, and was the No. 1 smart speaker in China by shipments in 2018. It connects customers with services offered by digital economy participants in an interactive manner. Tmall Genie focuses on entertainment and educational content for families in order to broaden its user base and drive their engagement with their devices. It is a gateway to link customers with new services and experiences to be generated by IoT and smart home appliances.
- Ant Financial, Alibaba’s Group’s financial services arm, launched Financial Technology Services, with focus on providing inclusive financial services to consumers and small and micro businesses, or SMBs, in China and across the world. It primarily operates digital payment services and financial technology platform services through sustained technological innovation and cooperation with financial institutions.
- Digital payment services – Alipay – is a leading global third-party mobile payment platform. Through Alipay, Ant Financial offers digital payment processing services predominantly to online and offline merchants and consumers globally.
Key Distribution Platforms
Youku was the third-largest online video platform in China in terms of monthly active users in March 2019. It enables users to search, view, and share high-quality video content quickly and easily across multiple devices. Youku brand is among the most recognized online video brands in China.
- UC Browser
UC Browser is one of the top mobile browsers in the world. It was the second-largest third-party browser in terms of monthly active users in China in March 2019.
Background History of the Company:
- Alibaba Group was established by its 18 founders, led by Jack Ma in Hangzhou.
- Alibaba Group launched a China marketplace, which is currently known as 1688.com.
- Alibaba Group raised US$ 20 Million.
- Internet business was organized for the first time by Alibaba Group.
- Alibaba Group outlines its mission and corporate values.
- com exceeds 1 Million registered users.
- A new online shopping website, Taobao Marketplace, was established
- Alibaba Group raised US$ 82 Million from various first-tier investors in the largest private equity commitment ever in the Chinese Internet sector.
- In June, Alibaba Group organized its first Netrepreneur Summit, at which a function for Internet entrepreneurs was arranged, and the first 10 Netrepreneurs of the Year were honored.
- Alibaba Group entered into a strategic partnership with Yahoo!
- In October, Alibaba Group took over all the operations of China Yahoo!
- A new program namely – Taobao University – was launched to provide E-commerce training and education to buyers and sellers.
- An online marketing technology platform namely – Alimama – was established by Alibaba Group.
- Alibaba Group R&D Institute was established.
- Alibaba Cloud was established, coupled with Alibaba Group’s 10th anniversary celebration.
- com acquired HiChina – China’s leading Internet infrastructure service provider.
- Alibaba.com renamed China marketplace 1688.com and Taobao Marketplace was launched.
- AliExpress was established to enable exporters in China to reach and directly transact with consumers worldwide.
- Alibaba Group launched Alibaba Foundation coupled with a sizeable fund dedicated to social reasons.
- Alibaba Group accomplished an initial repurchase of shares from Yahoo!
- Alibaba Group transferred its campus to Xixi District in Hangzhou.
- Mobile social networking app, Laiwang (currently known as DianDianChong), was officially launched by Alibaba Group
- Under the Ali Telecom brand Alibaba Group started offering a mobile virtual network operators (MVNO) services in China
- Alibaba Group and Ant Financial Services Group announced the closing of the reorganizing of the relationships between the two companies.
- Alibaba Group announced the production of Alibaba Music Group.
- Alibaba Group launched the Alibaba Sports Group together with Sina Corporation and Yunfeng Capital.
- Alibaba Group launched OS’Car – the first YunOS-enabled, mass produced Internet car, in collaboration with SAIC Motor Corp.
- The International Olympic Committee and Alibaba Group mutually announced a long-term partnership until 2028.
- Alibaba Group introduced strategies to start the first overseas e-hub under the Electronic World Trade Platform (eWTP) initiative coupled with the Malaysia Digital Economy Corporation (MDEC).
- The Hong Kong Entrepreneurs Fund launched JUMPSTARTER – Hong Kong’s largest start-up competition – merged with Cyberport and HKSTP.
- Alibaba Group updates its loyalty program for Taobao and Tmall members and established a joint venture with Marriott International to redefine the travel experience for Chinese consumers.
- Revenue from China commerce retail business in fiscal year 2019 accounted for US$ 37,142.3 Million
- Revenue from China commerce wholesale business in fiscal year 2019 was US$ 1,498.2 Million
- Revenue from international commerce retail business in fiscal year 2019 was US$ 2,933.7 Million
- Revenue from international commerce wholesale business in fiscal year 2019 was US$ 1,225.1 Million
- Revenue from Cainiao logistics services was US$ 2,232.8 Million in fiscal year 2019
- Revenue from cloud computing business in fiscal year 2019 was US$ 3681 Million, that is 84% YoY
- Revenue from digital media and entertainment business in fiscal year 2019 was US$ 3588 Million
- Revenue from innovation initiatives and others in fiscal year 2019 was US$ 695 Million
- Alibaba has 721 Mn mobile monthly active users, as of March 2019
- There are 654 Mn annual active consumers, for the 12-month period ended March 31, 2019
- Alibaba Group Holding Ltd. is also known as owner of a delivery logistics company
- Alibaba has changed the way department stores in China operate
- Hema Supermarket chain was originally founded by Alibaba Group
- Alibaba did not want to reveal it was a China-based company
- Jack Ma started Alibaba on a shoestring budget
- Alibaba is overwhelmed with hackers
- First Internet search of Jack Ma’s was “Beer.”
- To start the company, Jack Ma borrowed a small amount of money
- In a novel way, Jack Ma chose the name “Alibaba”
- The founder of Alibaba is a talented public speaker and showman
- Alibaba is immersed in technological ingenuity, yet the founder has little expertise
- Alibaba is the little known giant, which is bigger than Amazon
- According to Statista, Alibaba has a market value of 480.8 billion US$
- Brand value of Alibaba in 2020 is 152.525 Billion US$