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Showing posts with label Alibaba. Show all posts
Showing posts with label Alibaba. Show all posts

December 16, 2015

WPP reveals the 10 fastest growing brands this year; Alibaba &Facebook; tops

This years Millward brown brand report has some surprises and a few expected brand rankings 2015 number one global brand has been Apple.The Brand Value of the Top 10 brands almost tripled, to $1.1 trillion, one-third of the total value of the Global Top 100.Whereas the top 100 brand value now stands at $3.3 trillion, a 14% increase on 2014 and a 126% growth over 2006 .Apple, with its relentless focus on the consumer experience, and the ability to wow its consumers demonstrated this yet again with the iPhone 6, returns to the top spot with a 67 percent increase in brand value.

"WPP reveals the 10 fastest growing brands this year; "
WPP  and Millward brown’s  BrandZ™ Top 100 Most Valuable Global Brands ranking, in 2015, .
The biggest riser is Facebook with an increase in value of 99% The  fastest growing brand this yeat ( new entry) is the online retailer Alibaba which debuted in the retail ranking at $66.4 billion, helping to grow the retail category ranking by 24% and overtaking both Amazon and Walmart This years Fastest rising brand report shows that “Five of the 10 Top Riser brands come from technology or telecom providers categories. Other fastest growing brands were Domino’s Pizza which won on brand strength and communication.Amazon grew faster with its consistent and  awesome customer care. Other fastest growing brands were  Skoll ,Verizon, Google and Zara were

December 4, 2015

Amazon topples Walmart as most valuable retail brand, Alibaba ranked no 2, with 90%growth in brand value

AMAZON, WALMART AND HOME DEPOT are among the most  powerful retail brands across the world.Walgreens and Ikea round of the top 5 most valuable retail brands

Amazon leads the way in the retail sector by a significant margin, and the brand continues to grow. Amazon overtook Walmart in brand value terms in early 2014 and has pulled further ahead this year, rising 24% to US$56 billion, highlighting the challenge to the industry as a whole posed by new technology. Alibaba is the fastest growing brand in the sector. Its brand value has increased 90% in a year to US$11.4 billion.

November 25, 2015

alibaba set to buy hong kongs biggest english newspaper ” South China Post”

" Alibaba set to take over South China Post newspaper"

The company which raked up the biggest every online shopping revenues in a single day, Billionaire Jack Ma of is  set to buy a  stake in the South China Morning Post, Hong Kong biggest English language newspaper.

The South China Morning Post( SCMP)  was once the world’s most profitable daily newspaper, had seen its share of bad times, with the stock being suspended since 2013 after its earnings fell by over 25%  and was owned by  media tycoon Rupert Murdoch   who in turn sold it to the “Kerry Group”, which is owned by Robert Kuok.

Jack Ma, is considered to be close to the chinese political mandarins,and  has made no secret of his pro-China political views, while running a vast  online business empire with extensive investments on the mainland. The Kerry group has been looking for a buyer and Alibaba’s founders close ties to the government would certainly fit the bill, although it’s unlikely to be viewed favorably by readers already sensitive to what they see as increasing signs of the “mainlandization” of Hong Kong. But as the above chart shows.. Who really cares about a loss making newspaper when digital news is witnessing unprecedented traffic 

November 12, 2015

alibaba singles day ecommerce revenue hits $9.3billion in just 12 hours, and $1billion in 8 minutes

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Alibaba's singles day online sales zooms $9.3billion in 12 hours
 Singles Day Online Shopping in China rewrote history as its  biggest eCommerce retailer  Alibaba  recorded mind boggling $9.3 billion of online sales  in first 12 hours and ended  singles day  with eCommerce   revenues worth $14.3 billion for a day . Singles day in China is celebrated every year on November 11th

The 2015 Singles day   led Alibaba to their best ever single day revenue where as the event started in midnight and  the site soon touched $1billion of online sales  in just 8 minutes  and in 30 mins it touched $3.9billion . In 2013 it had taken Alibaba  50 mins to reach a 1billion USD revenue.

Alibaba’s online sales in just an hour  on 2015 singles day  is almost double the $2 billion spent in the same time period last year in 2014 . It’s also double the total sales of the 2014 Cyber Monday in the U.S. during the entire day.It dwarfs everything from some multinational companies’ annual revenues to the GDP of some smaller countries:

"Alibaba ecommerce revenuesvs other companies revenues"

Comparison of Alibaba Singles day sales vs other multinational companies financial metrics

May 11, 2015

Mega Corporation Alibaba’s entities compared with similar US companies

"Alibaba and its  US equivalent competitors"

Alibaba group compared with related US companies 

The chart shows  Alibaba group compared to other related US companies who are into similar business . Alibaba Chinese e-commerce giant,dwarfs its competitors with hundreds of millions of users, is bigger than eBay and Amazon combined. Alibaba  ha  2 big  distributees which are Taobao, a consumer-to-consumer marketplace launched to compete with eBay in China, and Taobao Mall (or Tmall), an Amazon-like marketplace which allows Chinese consumers to purchase directly from brands. Meanwhile  Juhuasuan, a groupon equivalent  is into deal buying .Launched by former English teacher Jack Ma in 1998, the company has grown exponentially, feeding the appetite of a growing consumer class in China for products from Nike sneakers to high-end jewelry not readily available in stores

Related Posts on start ups and Venture Funding

376 start ups in Asia raised $11.5b via vc funding

Highest Ownership of tech devices 

May 8, 2015

Alibaba set to invest in Micromax, plans to push its mobile OS to spur ecommerce in India

"alibaba set to invest in micromax"

 Chinese e-commerce giant Alibaba is set to be in talks to invest in  one of India’s biggest smartphone maker, Micromax, .Micromax has an 18 percent smartphone market share in India, and is one of the most competitive players in the market, which saw them fought off samsung last year

Alibaba is looking to market its own mobile OS known as YunOS, to push its e-commerce services across developing countries .By partnering with Micromax it can have an instant access and reach of captive consumers riding on its network. As ecommerce in India   increasingly integrated itself to the mobile ecosystem..connected devices like mobile and tablets will continue to be the gateway to gain a stronger foothold in India’s e-commerce market which is dominated by domestic players Flipkart and Snapdeal.

October 15, 2014

Alibaba to Start Alipay Mobile App Car Rental Service

  1. For the past year, Alibaba’s Alipay electronic payment service has transformed into a mobile payment tool that allows smartphone users to pay for all kinds of services offered by both online and brick-and-mortar businesses.
  2. However this time Alibaba is rolling out a service of a very different kind . This service include  car renting for  mobile users can pay for with the Alipay Wallet app, Users can start renting a car from . Zhejiang Ant Small & Micro Financial Services GroupAlipay Wallet, the mobile app for Alibaba’s third-party payment system, will offer products that allow users to book and pay for hospital fees and rent cars in Beijing and Hangzhou, based on a display at the company’s annual finance conference. There are also payment options for retail stores that use Alipay bar codes.
  3. Alibaba plans to use their  financial affiliate that owns Alipay, which it intends to be used for  a new rent-a-car service from Alipay Wallet called Che Fenxiang, which literally means “car sharing” in Chinese
  4. However this car renting feature can be used by users who have had good credit rating  which will be determined based on their transaction data collected by Alipay who can rent a car without paying a deposit. Other users with lower credit ratings can also rent them but they have to pay a deposit.

 Rental fees vary depending on the type of car. The cheapest one is about 15 yuan for an hour$2.45),

while certain vehicles like electric smart cars are more expensive.

The  car rental service  is supposein Hangzhou, Alibaba’s hometown, later this week. The service is offered jointly by Alipay and car rental firm called Hangzhou Che Lizi.

Zhejiang Ant plans to offer the service in Beijing and Shanghai later.

How Chinese Online Retail is driving more consumption,without affecting offline retail Sales

share of online retail spending in China :Backward areas vs Upmarket areas

China’s e-tail revolution | McKinsey & Company: China  have become the world’s largest online retail market in 2013, and has marched ahead of the US. Chinese  Online shopper numbers reached 302 million, and the online retail transaction volume in 2013 exceeded 1.85 trillion yuan, equivalent to 7.8% of total retail sales

Astoundingly around  90% of Chinese electronic retailing occurs on virtual marketplace and online market and e-commerce platforms where manufacturers, large and small retailers, and individuals offer products and services to consumers through online storefronts  similar to  eBay or Amazon, Ther are the the Local Chinese Giants   include PaiPai, Taobao, and Tmall, which in turn are owned by bigger e-commerce groups. A large and growing network of third-party service providers offers sellers marketing and site-design services, payment fulfillment, delivery and logistics, customer service, and IT support.”

One of the most interesting insights on the Chinese Online Retail Revolution is that ” online retail is not substituting  or affecting offline sales , however they are spurring more consumption that is spurring more consumption across both the lower and middle classs

As China moves towards online retail based consumption ,it has enabled China’s shift from an investment-oriented society to one that’s more consumption driven A recent McKinsey research conducted by analyzing consumption patterns in 266 Chinese cities accounting for over 70 percent of online retail sales, found that a dollar of online consumption replaces roughly 60 cents of sales in offline stores and generates around 40 cents of incremental consumption (Exhibit 1).

The research suggests E-tailing in China as the research indicates, is not simply a replacement channel for purchases that otherwise would have taken place offline. Instead, it appears to be spurring incremental consumption, particularly in less developed regions

September 23, 2014

Mobile Shopping at Alibaba contibutes 19% of revenues, with a 1.5% conversion rate

Mobile conversion rate of Mobile shopping in Alibaba
Alibaba Group  is the leading online commerce provider in China, offering a broad spectrum of B2B, B2C and C2C e-commerce services as well as mobile payments as well  also involved in cloud infrastructure services as well as China’s biggest online video site Youku Todou.

 Launched in 1999 as a stand-alone B2B e-commerce portal, the group is now the leading e-commerce provider in Asia as its C2C online marketplace Taobao and B2C online retail platform Tmall are also the market leaders in their respective business segments. Digital buying penetration rate among internet users in China is 55.2%

In the fiscal year ending March 31, 2014, the Alibaba Group’s annual revenue amounted to 52.5 billion yuan (approximately 8.46 billion U.S. dollars) with a net income of 23.4 billion yuan (3.77 billion U.S. dollars) Local e-commerce  only from China accounts accounting for 86 percent of Alibaba’s income in 2014. While he overall share of mobile shopping revenues was 19.4% with 1.49% conversion rate

September 19, 2014

Alibaba’s Tmall to end dominance of Amazon to become world’s biggest ecommerce company


It seems that the Chinese eCommerce juggernaut keeps on demolishing  the american internet dominance, as after  the grand success of Alibaba’s maiden ADR.Its Tmall .Having overtaken eBay to become the world’s second largest internet retailer, Tmall ( a subsidiary of appears to be on an unstoppable trajectory to the top. However what most people does not that the entire growth has come to China.. The biggest reason why ” China continues to strike gold at eCommerce is because of  its extremely robust domestic market.

Meanwhile  Euromonitor in its latest  report  projects the end of Amazons dominance in eCommerce. “New Study Says Alibaba’s Tmall Will Overtake Amazon as the World’s Biggest Ecommerce Site by 2015 in terms of revenue:  This will make  making Tmall the world’s largest eCommerce site
 Tmall’s revenues should hit $120 billion by 2017, according to Euromonitor. Amazon’s revenues will likely be $100 billion by then” 

Alibaba’s Net Income record 800% growth in 2014 as compared to 2013

According to the latest  data  on ” Alibaba  sizzling growth. The Chinese eCommerce giants annual income   has increased 300% this year  to  23403 million yuan as compared  2013.
 This is  higher from the what it had growth  during the  previous year . In 2013 Alibaba’s annual income was 8649 million yuan as compared to  2012 when it recorded  4665 million yuan

33% of Alibaba’s Gross Merchandise sales, comes from Mobile

Find more statistics at Statista

Alibaba’s fastest growing revenue by media has been mobile. Increasing penetration of mobile web has led to an unprecedented explosion in mobile commerce. As of 2014, Q2, Alibaba’s mobile share of gross merchandise by volumes has seen grow by 8 times  from 4.6% to 32.8%Chinese retail eCommerce sales is projected to  grow more than 60% this year,.Meanwhile a  June 2014 survey by GroupM found that nearly three-quarters of digital buyers said they preferred shopping online to shopping in traditional retail outlets. –

September 17, 2014

With $68 a share, Alibaba’s valuation to exceed $168billion, could surpass Amazon’s $150billion

Income from 4 segments : Chinese ecommerce makes 40% Alibabai revenue
The chart via statista shows how Alibaba earns its revenue. Alibaba has 4 pillars of revenue models, which are 1)cloud computing   2)International ecommerce 3)Domestic ecommerce ( chinese  online shopping. The above data shows the break up of Alibaba revenue model from 2010 to 2014 by  segment. In the fiscal year ending March 31, 2014, Chinese e-commerce corporation generated 4.85 billion yuan through international online sales. This translates to approximately 780 million U.S. dollars.

The Biggest IPO Moment has come .ALIBABA is set to see the biggest  IPO in United States to happen by any nation. With a market  capitalization of over 160billion with its IPO listing running into 319 pages .. The biggest Ecommerce giant is expected to raise more than than $20 billion, via its ADR ( American Depository Receipts )  which is a  a record in U.S.  Financial Markets 
Post its  September 19  IPO,Alibaba will soon be the most valuable Internet company in China and among the top three globally, behind Google and Facebook. Rounding out the top six are Tencent, and Baidu.

Meanwhile contrary to what was said earlier, Alibaba is reported to have set its ADR share between $66 and $68 per share ( as per filing with the Securities and Exchange Commission ) Earlier Alibaba had said that it expected shares to price between $60 and $66 
At $68 per share, the company could raise more than $25 billion and have a valuation of around $168 billion, larger than AMZN -1.21%, which has a market capitalization of about $150 billion as of the end of Monday  15th September trading