B2B in emerging markets (sharing)

B2B in Emerging Markets (BRIC and

Turkey);

Mr. Michael Mang

Alibaba.com Business Intelligence Series – B2B, C2C vs Emerging Markets?

14:30 – 17:30, Thursday, 19 JULY 2012, 26/F Tower One, Times Square, 1 Matheson Street, Causeway Bay,

Hong Kong; 28 ppl participated;

2

Self Introduction

• Academic background in engineering and business administration;

• Experience working in SMEs and sourcing and supplier development in multinational companies;

• From traditional business environment to e-commerce digital world.

An E-commerce Ecosystem

Taobao MarketplaceChina’s leading C2Conline marketplace

China Yahoo!Chinese Internet portal

Alibaba Group

Alibaba.com

Global leader in small business e-commerce

AlipayThird-party online payment platform

Affiliate

Alibaba.com

International sites China domestic sites

Alibaba CloudComputing

Data-centric cloud computing services

eTaoComprehensive shopping

search engine

JuhuasuanComprehensive group

shopping platform

Tmall.comB2C online shoppingplatform for quality,brand name goods

Key Messages

1. Trade with emerging markets.

2. From offline to online (O2O);

3. B2B2C;

5

111th Canton Fair – April 2012

6

非洲通讯产品商机

非洲有 6亿手机用户 ,比欧洲和英国多 ,大部分是智能手机

去年本港出口非洲的总货值中 , 电讯产品占 42.4%, 行业商机大 ;

非洲当地较少电子生产商 , 有待外商开拓 ; 尼日利亚电脑渗透率低 , 居民多依赖智能手机上网 ;]

Samsung, Nokia等手机较 iPhone受欢迎 ; 周边产品也受欢迎 ,本港产品在质量上具优势 .

资料来源 :香港统计处 , 综合受访者意见 . 7

BRIC GDP Forecast

2006 2010 2015 2020 2030 2040 2050 US US US US China China China

Japan China China China US US US

Germany Japan Japan Japan India India India

China Germany Germany Germany Japan Brazil Brazil

UK UK UK UK Russia Russia Mexico

France France France India Germany Japan Russia

Italy Italy Italy France Brazil Mexico Indonesia

Canada Canada Russia Russia UK Germany Japan

Brazil Russia India Italy France UK UK

Russia Brazil Brazil Brazil Mexico France GermanySource: Global Insight World Service and Goldman

Sachs

India Channel

9

India – Geography & Industries

Mumbai

New Delhi

Kolkata

Chennai

• Key SME Clusters in India

Challenges of doing business in India

• Corruptive system

• Weak sense of standards and execution (Jugaad)

• Good at bargaining

• Poor infrastructure

• Tech Savvy but believe in face to face

• talk talk talk…Overpromising under delivery

Turkey

Turkey Channel

16

Top 10 Supplier Markets for Turkish Buyers

Q1 2012

Market % of total inquiries

China 66%

India 4%

Turkey 2%

Hong Kong 2%

South Korea 2%

Malaysia 2%

Taiwan 2%

United States 2%

Ukraine 1%

Pakistan 1%

17

Top 10 Industries for Turkish Businesses

18

Q1 2012

Industry category % of total inquiries

Machinery 11%

Agriculture 9%

Food & Beverage 8%

Construction & Real Estate 7%

Apparel 7%

Minerals & Metallurgy 6%

Textiles & Leather Products 6%

Beauty & Personal Care 6%

Chemicals 4%

Automobiles & Motorcycles 3%

Country Profile - China

Supply Distribution

20

Source: Alibaba

International Trades

22

Important Trading Hubs

Buyer Markets

Manufacturing and Trading Regions

The Importance of Sourcing Channels to Buyers

53

52

50

46

40

39

27

26

47

39

48

42

30

35

24

24

56

57

50

48

44

41

28

27

Internet-Search engine

Internet-B2B e-commerce

platforms/portals

Local trading markets/wholesale

centers

Recommendation from others

Trade shows/exhibitions

Association

Yellow pages

Magazines and newspapers

Importance of various channels to buyers

Overall International Sourcing

Online channels

Offline channels

Traditional channels

• International buyers prefer sourcing through multi-channels, but the online channel is the most important one for them.

Local Sourcing

Source: The Nielsen Company

BRIC e-Commerce Potential

US$10.6m in online retail Sales

largest in Latin America

online market will expand over 12% a year

60mil internet users

15mil online shoppers

largest online population in Europe

grow 12% a year

e-commerce transaction reaches $100 billion

Indian middle class of 288 million people = the entire U.S. consumer base

growing at 29% a year

Manage Your Digital Content - Catch Audiences’ Attention in a Few Seconds

Top 3 Considerations When Buyers Choose Suppliers

What concerns the buyers most in dealing with new suppliers?

Range <1 1-2 3-5 6-7 >7

Satisfaction Rate

Number of Days

Response Time Expectation from SME buyers （ Source: Alibaba.com Internal

Survey）

2. Facebook1. LinkedIn 3. Youtube 4. Meetup 5. Pinterest

SNS

Mention Frequency (Importance)

Other Online Marketing Platforms

Professional Sourcing Club(PSC)

Supporting by Alibaba.com, PSC (Professional Sourcing Club) is an online and offline networking group aiming to gather trading, sourcing and supply chain experts from various industries and regions to share market intelligence and creative ideas, search for talents and encourage more interactions between members such as organizing professional seminar, networking, leisure activities, sourcing tours, visiting trade shows etc. to contribute the industry as a whole and benefit mutually.。

To join, please click herePlease contact Mr. Michael Mang at michaelmang@hk.alibaba-inc.com for more information

Sourcing Hub Service

Meeting with Suppliers

Package A: Meeting with suppliers in local office

Package B: Meeting with suppliers & factory visit

Market Intelligence

Acquire sourcing tips from our expert team on:- Market information;- Sourcing tips;

Pre-trip Arrangement

Leave all transportation arrangements to us:- hotel pick up;- Alibaba.com local office;

More Information: http://www.alibaba.com/sourcinghub

please apply here

Meet pre-screened suppliers in one day in one of the 17 Asian industrial Zones (Sourcing Hubs)

Conclusions

Alibaba.com makes doing business easier anywhere

Thank you!

Buyer Service & Development Departmentmichaelmang@hk.alibaba-inc.com

Copyright NoticePlease note:Michael Mang & Alibaba.com retain the right of copyright of all material in this presentation. No part of it is to be copied or published or circulated to any third parties without permission from Michael Mang or Alibaba.com