Alibaba Group Holding Limited · NYSE:BABA
Alibaba — Investor Day (2021)
29 slides from Alibaba's investor day presentation, Dec 16, 2021
Slide 1: New Consumer Marketplaces - Taobao Deals & Taocaicai
New Consumer Marketplaces - Taobao Deals & Taocaicai Trudy DAI, President of Industrial E-commerce & Community E-commerce
Slide 2: Huge Potential of Less-developed Areas in China
01 Huge Potential of 02 Less-developed Areas in China 中国下沉市场 淘特：极具性价比的 潜力巨大 2
Slide 3: Rapid Penetration of Consumer Base E-commerce
Rapid Penetration of Consumer Base E-commerce 目标用户规模大 零售市场空间广 数字化交易增速迅猛 RMB15 Tn 5x Internet Users with Monthly Income of Total Retail Sales Rural E-commerce GMV Growth RMB1K-8K, 2020 (1) in Lower-tier Cities & Towns, 2020(2) 2015-2020 (3) Notes: 1. China Internet Network Information Center, 'The 47
Slide 4: Our Focus: Manufacturer-to-Consumer (M2C)
Our Focus: Manufacturer-to-Consumer (M2C) 我们的选择：M2C Tier-1 Tier-2 Brand Wholesaler Retailer Distributor Distributor Low Efficiency High Cost Subpar Service Manufacturer Consumer (Factory / Farm) Wholesaler 1 Wholesaler 2 Wholesaler 3 Wholesaler 4 Wet Market / (at Source) (at Source) (Trans-regional)
Slide 5: Our Focus: Manufacturer-to-Consumer (M2C)
Our Focus: Manufacturer-to-Consumer (M2C) 我们的选择：M2C Tier-1 Tier-2 WarehouseDistributor Brand Operated by Taobao Deals Distributor / Merchant Wholesaler Warehouse Retailer Taobao Deals Multi-day Delivery Low HighEfficiency Efficiency High Cost Low Cost Subpar Service Good Service Manufacturer Consume
Slide 6: Value Proposition in Alibaba
Value Proposition in ibaba 业务定位 Higher Di erentiated Optimized Product Assortment Purchase Frequency Ful llment Experience for Less-developed Areas Perishables / FMCG / … Next-day Self-pickup Value-for-money Goods Serve Existing Consumers Acquire New Consumers 6 ff fi A l
Slide 7: Rapidly Winning Consumer Mindshare
Rapidly Winning Consumer Mindshare 迅速取得消费者认可 Strong User Growth Fast Order Growth Increased Consumer Stickiness 用户规模快速扩大 交易订单量快速增长 用户粘性显著增加 ~270 Mn 200% Taobao Deals + Taocaicai YoY Increase (2) ~400% Taobao Deals + Taocaicai 1.8x Purchase Frequency AAC (Deduped) (1) Daily Orders YoY Increase (Taoba
Slide 8: Taobao Deals: Value-for-money Products from Manufacturer
01 Taobao Deals: 03 Value-for-money Products from Manufacturer 中国下沉市场 淘菜菜：“次日自提”的 “源头好货” 8
Slide 9: Taobao Deals: Three Core Capabilities
Taobao Deals: Three Core Capabilities 淘特：三项核心能力 Merchant Warehouse (Factory / Farm)
Slide 10: Product & Supply Chain: Value-for-money
Product & Supply Chain: Value-for-money 商品力：极具性价比 Our Advantages Pricing Model 1688.com-veri ed Factories, Unbranded Branding Cost Essential Functionality Design Cost Agile Manufacturing Manufacturing Cost Turn-key Retail Operation Services Retail Operation Cost Total Cost Markup% Retail Price Preci
Slide 11: Product & Supply Chain: Value-for-money
Product & Supply Chain: Value-for-money 商品力：极具性价比 Turn-key Retail Unbranded & Essential Agile 13.5% Branded Product Operation Services & Quality Control Functionality Manufacturing Precision Marketing Pro t Margin of the Factory (2) 98% 7 Modes Acoustic Acoustic 5 Modes Vibration 7 Modes Vibration U
Slide 12: Fulfillment & Delivery: High Efficiency, Low Cost
Fulfillment & Delivery: High Efficiency, Low Cost 履约⼒：⾼效率低成本 Streamlined Distribution Nationwide Warehouse Network Ful llment by Taobao Deals M2C Model 30+ Warehouses Close to Manufacturing Bases (1) 24-hour Collection & One-stop Customer Service → No Unnecessary Intermediaries → Higher Efficiency &
Slide 13: Consumer Management: Fun and User-friendly
Consumer Management: Fun and User-friendly 运营力：好玩简单 Interactive Games Livestreaming Social Fission Bundled O ers Worry-free Guarantee 曲奇饼干6包 13 ff
Slide 14: Taobao Deals: Rapid Consumer and Order Growth
Taobao Deals: Rapid Consumer and Order Growth 淘特：用户及订单快速增长 1.1 Bn M2C Orders for Direct-from-factory Products (3) 240 Mn+ 290%+ 180 Mn Orders of Agricultural AAC (1) Total Order Growth YoY(2) Products (4) Notes: 1. Annual active consumers of Taobao Deals for the twelve months ended September 30, 202
Slide 15: Taocaicai: Next-day Self-pickup
01 Taocaicai: 04 Next-day Self-pickup Ful llment Network 中国下沉市场 商业基础设施 履约网络 15 fi
Slide 16: Taocaicai: Four Core Capabilities
Taocaicai: Four Core Capabilities ABAD Regional Community © Distribution > Pick-up -_- Center Point Manufacturer Consumer (Factory / Farm) a a a a . 5 P Social Ci Ch. i Product & Supply Chain Fulfillment & Delivery Bevelocmenté Operations Consumer Management
Slide 17: Product & Supply Chain: High Quality, Rich Assortment
Product & Supply Chain: High Quality, Rich Assortment 商品力：更好更丰富 Non-perishables Taobao Deals: Sun Art: Synergy in Procurement and Supply Value-for-money Merchandise Localized by Region ~1.6 K 3.5 K+ 40+ c Assortment Brands in Joint Private-label Regional Procurement Competitive Bidding Procurement P
Slide 18: Product & Supply Chain: High Quality, Rich Assortment
Product & Supply Chain: High Quality, Rich Assortment 商品力：更好更丰富 Perishables Direct Procurement from Farms: Sun Art: Co-operated Perishables Processing Centers (PPC) 7 Years of Experience 700+ Agricultural Bases (1) Shaanxi Apple Shandong Apple Sichuan Kiwi Aiyuan Orange Yunnan Orange PPC for Each Di
Slide 19: Fulfillment & Delivery: Effective, Efficient, Reliable
Fulfillment & Delivery: Effective, Efficient, Reliable 履约力：高效、准时、可靠 Local Supplier Brand & Distributor (National & Regional) Direct Procurement Base Supply Multi-temperature Cold Chain Temperature-controlled, Refrigerated, Frozen • VMI Warehouse • PPC Dispatch VMI Warehouse Perishables Processing Ce
Slide 20: Fulfillment & Delivery: Effective, Efficient, Reliable
Fulfillment & Delivery: Effective, Efficient, Reliable 履约力：高效、准时、可靠 Effective Efficient Reliable Category-specific Solutions Optimized Delivery Schedule End-to-end Cold Chain Based on Distance Capability with Three Temperature Tiers: Fully Controlled End-to-end 97% of Orders Delivered before Tempera
Slide 21: Social Commerce Channel Development & Operations
Social Commerce Channel Development & Operations: Multi-format Services for Local Communities 渠道力：线下多业态服务社区 Store Owner Synergy with Coverage of Pick-up Points Cainiao Posts Counties and Townships 560 K 45 K+ 40% Stores (1) Posts within Taocaicai Service Areas (2) Taocaicai Penetration Rate (3) Inte
Slide 22: Consumer Management: Multiple Entry Points with Various Shopping Scenarios
Consumer Management: Multiple Entry Points with Various Shopping Scenarios 运营力：线上多端多场景 Entry Points Shopping Scenarios Taobao App Taobao Deals App Mini Program Community Shopping Group Livestreaming 22
Slide 23: Taocaicai: Rapidly Scaling Commerce Infrastructure
Taocaicai: Rapidly Scaling Commerce Infrastructure 淘菜菜-商业基础设施快速布局 350%+ 6-month Increase ~800% 6-month Increase 530%+ 6-month Increase RDC Gross Floor Area (1) Number of SKUs Sold (2) GMV (3) Notes: 1. Increase in RDC gross oor area, September 30, 2021 vs. March 31, 2021. 2. Increase in daily averag
Slide 24: Continuous Upgrade of Commerce Infrastructure
01 Continuous Upgrade of Commerce Infrastructure 中国下沉市场 持续升级 24
Slide 25: Continuous Upgrade of Manufacturing Infrastructure
Continuous Upgrade of Manufacturing Infrastructure 产地基础设施持续升级 Smart Factory Digitalized Agriculture Technology-enabled Direct Marketing Smart Production Lines Digitalized Seed Selection Livestreaming from Origin Product Customization Capability Digitalized Planting Brand Incubation Agile Manufacturi
Slide 26: Continuous Upgrade of Fulfillment Infrastructure
Continuous Upgrade of Fulfillment Infrastructure 履约基础设施持续升级 Integrated Inbound and Outbound Ful llment Network for Rural Areas First-mile: Last-mile: Warehouse Operation Fulfillment Automated Sorting, Processing, Conveying Shared Warehouse & Delivery Resources, → Reduce Cost & Enhance E ciency Servi
Slide 27: Alibaba Ecosystem: Serving Consumers in Less-developed Areas
ibaba Ecosystem: Serving Consumers in Less-developed Areas 阿里巴巴生态体系服务下沉市场用户 Cainiao Logistics Expanding Ful llment Product Assortment ibaba Infrastructure Digital Agriculture and Service Scope Cainiao Rural Cainiao Post Consumer Multiple Management Taocaicai Taobao Deals Channels Synergy Cainiao Rur
Slide 28: Positive Social Impacts
Positive Social Impacts 积极的社会影响 Ensuring Stable Supply of Empowering Industries with Creating Jobs Daily Necessities Science & Technology Maintaining Uninterrupted Services During Driving Standardization and Delivering Vocational Training COVID-19 Quarantine and Extreme Weather Higher Value Add in A
Slide 29: To Make It Easy To Do Business Anywhere
To Make It Easy To Do Business Anywhere ik kEF RS # HH & B Cm | : ; Fi a