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AliExpress: An opportunity for Central and Eastern Europe

AliExpress: An opportunity for Central and Eastern Europe. Today’s Agenda. 1. 2. 2. E-Commerce Lessons from China AliExpress: An Introduction Our Social Commitments. Change is the law of life and of the digital age….

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AliExpress: An opportunity for Central and Eastern Europe

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  1. AliExpress:An opportunity for Central and Eastern Europe

  2. Today’s Agenda 1 2 2 E-Commerce Lessons from China AliExpress: An Introduction Our Social Commitments Confidential

  3. Change is the law of life and of the digital age… • “…E-commerce is rapidly becoming a traditional business; pure e-commerce players face tremendous pressure…” Jack Ma Confidential

  4. 1 E-Commerce Lessons From China

  5. E-commerce now ~16% of China’s total retail sales Confidential

  6. China is leading all other regions in terms of e-commerce Confidential

  7. Cross-border e-commerce is growing particularly fast 34% CAGR growth expected in Chinese outbound e-commerce between now and 2020 Outbound e-commerce trade (RMB 100mns) Confidential Source: AliResearch

  8. Mobile is quickly replacing desktop as preferred method for users to engage with internet Confidential

  9. Average user opens Taobao mobile shopping app > 7x a day because it is entertaining and social Confidential Source: Taobao

  10. Related industries are also evolving (quickly) Confidential

  11. Meaning China is a leader in the “new finance” Confidential Source: Financial Times

  12. But the “new finance” is not just payments Wealth Management Credit rating Insurance Credit services Confidential Source: Alipay

  13. China is also developing a “new logistics” Cainiao’s platform based logistics model allowed over 12bn packages to be delivered in the year ending March 2016: Confidential

  14. All this is made possible by big data Alibaba big data enabled ecosystem:

  15. So how to thrive in this changing environment? 1) Embrace mobile to better engage with your users 2) Give your users more than just a shopping experience; entertain 3) Be the disruptor; no industry is safe from change in the digital age 4) Big data is the new natural resource; use it to make better decisions Confidential

  16. 2 AliExpress

  17. With a 7 year journey to 100mn buyers AliExpress becomes the number one online shopping platform in Russia Sellers with annual sales over $10m start to appear France becomes a top five market AliExpress reaches 100 million buyers AliExpress is launched Mar 2015 Nov 11st 2015 2011 2012 2013 2017 Sep 2009 Jul 2010 Apr 2010 Dec 2012 Over 21.24 million cross-border orders Over 100k sellers on AliExpress Test version of AliExpress is launched AE Russia established Localized Brazilian site established Confidential

  18. AliExpress is increasingly mobile • AliExpress is one of the most downloaded apps on both iTunes and Google Play: • iTunes: AliExpress is ranked number one in 23 markets, and among the top five in 102 markets. • Google Play: AliExpress is ranked number one in 22 markets, and among the top five in 66 markets. • Editors’ Choice: AliExpress app given Google Play Editor’s Choice award in January 2017 Confidential

  19. Including in the Central & Eastern Europe region • AliExpress desktop and mobile penetration is increasing across Central and Eastern Europe: • Top 3 retail website and Google Play top 3 most downloaded retail apps in Hungary • Top 3 retail website and Google Play top 3 most downloaded retail apps in Poland • Top 3 retail website and Google Play top 5 most downloaded retail apps in Czech Republic • Top 3 retail website and Google Play top 3 most downloaded apps in Slovenia Sources: Alexa, Sensor Tower as of May 11th 2017 Confidential

  20. With entertaining, socially focused content Confidential

  21. AE enables innovative new payment methods Confidential

  22. That improve our buyers’ experience • AliExpress Netherlands payment success rate increased over 5% after Ideal was added as a payment method Confidential

  23. AE manages complex logistics challenges at scale • Single’s Day 2015 (11.11.2016): • On this day, AliExpress produced ~$36 million cross-border orders covering 224 countries and territories, a new record in the company’s history. • Logistics: • AliExpress uses a global network of logistics partners and Cainiao’s data driven logistics platform to meet the challenge of delivering packages at such large volume. Confidential

  24. 3 Our Social Contribution

  25. Smarter shopping, better living in Russia Confidential

  26. Improving logistics capability in Russia AliExpress collaborated with Russia Post to improve their logistics capability and reduce a 2-3 month backlog; improving daily packages processed by over 7x Confidential

  27. Supporting the UN SDG through Ant Forest Confidential

  28. Thank You Mobile App

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