Question

In your own words, write a short business report (300-500 words) about Alibaba Group future plans.

Answer 1

Chinese e-commerce giant Alibaba plans to double its total operations on its platform over the next five years. On the second day of the 2019 investment day in Hangzhou, China, investors were given an overview of future growth plans.

Alibaba's short-term management maintains its revenue target of 500 billion yuan by 2020. The company's short-term goal is to grow its annual active user base from 730 million to over one billion in the next five years and almost double its annual volume to 5.7 trillion yuan in the fiscal year. By 2019 to more than 10 trillion yuan. In the long term, Alibaba wants to reach 2 billion users worldwide by fiscal 2036, create 100 million jobs and support more than 10 million small and medium-sized Prep iyatiya platforms.

The growth of Alibaba's customer-centric business has to be strongly supported by three machines, the company said at an Investor Day event.

    Consumer growth. Alibaba has added more than 200 million users to its Chinese retail market over the last two years, as well as 130 million active users in its international market. The company has already penetrated 85 percent of China's development, with 40 percent penetrating underdeveloped areas, which still shows great opportunities for growth.
    Expands a category. Alibaba’s digital ecosystem is becoming more powerful, and the company plans to attract a large number of users to help create emerging regions. There are numerous sales opportunities in business segments such as Tabao's main retail market, Ele.me's food distribution platform, and Alipay's digital payment tools. "It will be difficult to catch up," Alibiax analyst Alicia Yap wrote on Tuesday.
    Globalization. Alibaba is expanding to many international markets through acquisitions and local partnerships through platforms such as AliExpress, Lazada and AliPay.

Alibaba management also updates investors on the latest developments in their various business sectors.

    Alibaba's Cloud is still China's dominant player with a 43% market share. Alicloud is growing significantly in the Asia-Pacific region, with presence in Malaysia, Indonesia, Hong Kong and Macau. Given its regional experience, Al-Zaden is also targeting companies from developed countries who want to enter the Chinese market. By managing costs and optimizing, Alizarro is witnessing profit growth. However, CFO Magi Wu noted that profit is not the first priority right now, and the company expects a compromise between short and medium-term profits on long-term strategic value.
    Alibaba website Youku announced a 46% increase in customer payments in the June quarter, driven by improved content. Alibaba also owns online ticketing platform Damai, which has more than 70% market share in China since 2018. Alibaba aims to provide online infrastructure for China's "developed" entertainment industry by providing support services such as finance, manufacturing and more. Website distribution and management.
    Alibaba Ant’s digital finance arm covers microfinance assets, insurance, credit services and Alipay’s digital payment platform. According to Alibaba, more than 740 million consumers and 28 million small businesses use Ant Financial for digital financing, and they increasingly use Ant Financial services. About 80% of users use more than three services - up from 70% presented last year and 40% using all five categories - up from 30% last year. By the second quarter of 2019, Alip had 900 million active annual subscribers in China and 1.2 billion global users. Alipay is currently accepted by offline marketers in 56 markets and has formed partnerships with local e-wallets in 10 markets.
    The Alibaba Cainiao Logistics subsidiary has a global Keno Ganga distribution network with over 100 million annual users and over 40,000 Cain Channel's latest channels.