eCommerce 

ecosystem‐
China Story
Steven, Zheng
Alibaba.com GET certified lecturer
Steven Zheng
General manager
Hangzhou Kefan Import & Export General manager, 
Hangzhou Kefan Import&Export

China in 1999…
• Less than 10mm internet users

• No retail ecommerce

• No online payment services

• No private 
logistics companies

On April 20, 1994, a 64K international hotline connected the Chinese Academy of Sciences to the Internet

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E‐Commerce & Inclusive Development in China

In 2016,

• Chinese Internet users reached 731 million, or 53.2% of China’s population; 
467million consumers shop online

• Chinese mobile users reached 695 million, or 95.1% of total internet users in 
China; 441 million consumers shop via mobile; mobile online payment users 
rose to 469 million

• E‐commerce sales has reached over $800 BN, accounted for 15.5% of China 
retail sales, with YOY growth of 26.2%

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The 2nd information revolution Internet Applications: From "Pure Bit" to "Bit + Atom"

Coming digital revolution 2.0

The First
Cloud, Big Data, Mobile internet Wave of the
The 2nd IT revolution：Digi economic 2.0 Platform Internet of things, AI Internet
USA, China
Cloud computing, Big data
Chips, PC, Internet
The 1st IT revolution：Digi economic 1.0 Industry Chain
USA 平台
The Second
Computer
Wave of the
Technology progress

Internet
The 2nd industry revolution：Energy Companies
USA
Electricity

The Third
The 1st industry revolution：Power
England
Factories
Wave of the New Retail New
New New ……………
New Finance
Manufacturing
Steam engine Internet Retail Retail

1760s 1870s 1940s 2010s 2046s

 The Alibaba Story
Taobao City 
Single’s Day Created Tmall Global New Retail
Alibaba.com 
Taobao Village Rural Taobao Hema
Created Alipay Cainiao
1999 2004 2009 2013 2014 2017

2003 2012 2015

Taobao Tmall Alihealth
Ali‐Entertainment
Ebay: 80% 
market share

SARS Outbreak, 2003
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The world largest retail platform

10+ Million 552 Million 617 Million

Annual Active Sellers Annual Active Buyers Mobile MAUs

US$ 768 Billion 58% 80%+

Annual GMV YoY Revenue Growth Mobile GMV Share •550 million active users, 10 million active sellers, 1 billion items, and
4.82 trillion turnover
(* data as of March 30, 2018)
Source: Alibaba Group March Quarter 2018 Financial Report 

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 Retail: Internet Tea Seller "Efuton" Trade Link
Alipay Collection The large-scale use of Alipay's "secured"
Payment T+N transactions has promoted mutual trust
between buyers and sellers in e-commerce;
Traditional Mode Efuton Mode
Delivery
Buyers Sellers this allows for fast and convenient online Tea
transactions, which has greatly promoted the Customers Farmers
Tea
development of e-commerce in China; Farmers
Sellers

2010 Using goods, transactions and credit data of the three platforms -- B2B, Taobao and Alipay, we
issued batches of loans to small and micro-companies which were unable to obtain loans Malls &
5 Interest Chains Tea

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through traditional financial channels. These loans were generally "small amount, short term, Supermarkets Companies
instant issuance & repayment";
Tea
2011 Alipay launched "fast payment" so that bank card users no longer needed to open e-bank Market Interest Chain
accounts before conducting easy online payments;
Customers
The launch of the "Yu'E Bao" had a widespread social impact. By the end of 2017, Yu'E Bao Sales
2013 reached 1.58 trillion yuan, the world's largest monetary fund. Agents Tea
Companies

Based on Low-cost, Rapid Establishment of

Online Distribution System on the Internet
Traditional Distributor Mode Network Sales Mode

Manufacturer Manufacturer

First-level distributors
Network distributors
Digital economy
mechanism
Information transmission

Second-level distributors
market information
Transmission mechanism of

Third-level distributors

Retailers

Consumers
Consumers

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 Online celebrity = millions of selling Industrial Economic VS Digital Economy

Industrial Economy Digital Economy

~2 million ~150 million

Taxi driver Online taxi service

~1 Billion / year ~30 billion /year

Package delivery

~15000 transactions / Sec ~120,000 /Sec

Peak value of the Bank transaction

E‐Commerce brings benefit to many aspects of society 2014-2015 Massive O2O Start-up Tide

• Innovation and entrepreneurship opportunities for young people
• Reduce cost for innovation and entrepreneurship
• Provide new business service system
Promote SMEs’  • Speed up SME’s business development
development • Encourage micro‐innovations 

• Rural online consumption and selling
Promote rural • Rural Start‐ups
development • Rural Job opportunities creation

• Extend new job opportunities (young people, women, disabled, rural）
Create more
job opportunities • Upgrade employment quality (flexible & diversified）
 The Alibaba Ecosystem

CORE COMMERCE MOBILE MEDIA & ENTERTAINMENT LOCAL SERVICES

*
OTT
* Tickets

* *

PAYMENT & FINANCIAL * *

SERVICE

LOGISTICS *
MARKETING SERVICES & DATA
MANAGEMENT PLATFORM

CLOUD COMPUTING

Rural Taobao
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SMEs Countryside Employment

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Industry 4.0 & Inclusive Education
Governments
Promote Economic Transformation

3D/4D printing AR/VR Sensor and IoT AI

Entrepreneurs
Enable Job Creators
A new empowerment model 
Merchants
for governments,  Extend Practical knowledge
entrepreneurs, merchants, 
Training Organizations
NGOs, and students in  Train the Trainers
Malaysia
Practitioners
On‐the‐job Learning New approach of  New shopping  Improve experience at  Everywhere in new 
production experience stores retail
Universities
Foster Future Talents

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eWTP: Electronic World 
Trade Platform
Connecting SMEs and consumers 
globally – empowering both

Leveraging technology to create 
worldwide, borderless free trade

Accelerating globalization and promoting 
growth
Thank you!
Creating prosperity for all Promoting Inclusive Trade 

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