Alibaba releases 2021 third quarter financial report digital transformation plan to support small and medium-sized businesses in coping with the epidemic

The financial report shows that in Double 11 in 2020 , more than 250,000 brands and 5 million merchants participated, more than 470 brands had sales of more than 100 million yuan , about 30 million new products were released, and the GMV generated by sales increased strongly by 35% year-on-year .

Behind this group of rapidly and steadily growing new products and new merchants is the evolution of the industry's understanding of "people, goods and places" in the context of digitalization and the improvement of merchants' ability to transform using digital infrastructure.

During the first Double 11 event since the outbreak , Tmall opened a special venue for new brands and merchants in industrial belts . To help emerging merchants solve the problem of quick financial loans, Tmall launched a "no worries about stocking" solution, which allows loans to be issued within 3 days with loan amounts of up to millions.

Ant Financial has provided more than 400 billion yuan in loans to small and medium-sized businesses , and its "0 account period" service has been further improved , from receiving payment as soon as the merchant ships the goods to "receiving full payment as soon as the pre-sale is made", which shortens the merchant's payment time by more than 20 days and helps small and medium-sized businesses solve cash flow problems.

Alibaba Group's Customer Experience Group ( CCO) has made it easier for novice merchants to open stores and ship products by simplifying processes and upgrading products. The success rate of individual store opening has increased by 25% , the time required has decreased by 64% , and the product shipment rate has increased by 14% .

In December 2020, the " Subscribe " and " Shop " functions were introduced on the homepage of the Taobao APP , providing merchants with a new channel to accumulate fans on the site and build brand influence .

External analysts believe that the significance of the new "Shop" function is to aggregate and distribute decentralized content such as high-quality transaction reviews and consumer propositions on the platform, thereby promoting transactions again . This method will undoubtedly provide more exposure opportunities for the content of small and medium-sized businesses and new businesses.

The sales scenario is only one part of the rebirth of small and medium-sized businesses after the epidemic. How the 6.7 million Chinese manufacturing factories pass the test of the epidemic is a real test of the industry's digital transformation capabilities.

In this context, as a business segment where C2M industrial belts and small and medium-sized businesses are relatively concentrated, Taobao Special Edition completed the full integration with Alibaba's domestic trade platform 1688 in the quarter. Taobao Special Edition added more than 70,000 "wholesale and retail" factory merchants. On average, more than 500 industrial belt factories use Alibaba C2M to transform into retail factory direct supply every day.

In the past year, the indomitable Chinese factories moved their suspended offline businesses online. When they were under-operated, they shared production capacity. When customers could not come, they started live broadcasts from the factory. When overseas orders declined, they turned to domestic orders ... demonstrating remarkable resilience and persistence.

Since October 2020 , Taobao Special Edition has established 23 production service centers in the core industrial belts across the country to provide personalized services to small and medium-sized enterprise customers in the industrial belts.

As the industry's largest factory search engine, since 1688 launched the "Find Factory" function in September, a total of 1.2 million buyers have searched, screened, discovered factories that meet their requirements and established cooperation with the factories.

The 1688 Small and Medium Enterprise Business School provided 200 offline training sessions and more than 500 special live broadcasts for free to factories in the industrial belt , and 460,000 small and medium-sized enterprises participated in the free courses.

In the second half of 2020 , China's manufacturing industry, which was the first to resume work, ushered in a "rebound". With the recovery of demand, some overseas orders were transferred to China, and news of explosive orders and expansion of recruitment came one after another. China's industrial growth rate continued to set new highs for the year and became an important pillar of China's economic recovery.

The recurrence of the global epidemic has increased the international market's dependence on Chinese manufacturing. In this process, the global manufacturing industry has a tendency to return to China. Customs data show that cross-border e-commerce exports in 2020 increased by 40.1 % year -on-year . Cross-border e-commerce has become the fastest growing mode of trade. Against this background, Alibaba International Station's annual transaction volume surged by 101 % , and the number of merchants' orders doubled year-on-year.

Small and medium-sized enterprises have therefore ushered in new growth opportunities. Since the beginning of 2020 , the international site has increased overseas quality traffic for merchants across the network and opened data operation tools. Foreign orders have gradually picked up and recovered rapidly online.

To support the rapid growth of cross-border e-commerce business against the trend, Cainiao Network and its partners continue to invest in intelligent logistics backbone networks to help global merchants alleviate the limited logistics capacity due to the COVID-19 pandemic. The financial report shows that in December 2020, Cainiao Network dispatched more than 200 international cargo charter flights for AliExpress business, improving the fulfillment efficiency of AliExpress orders and shortening the average delivery time from Chinese orders to international markets by 3.5 days.

In China, digital logistics infrastructure not only provides important support for domestic express delivery business, but also becomes an important booster for the digital development of agriculture.

In 2020 , Alibaba's five national digital agricultural collection and processing centers (cold chain origin warehouses) were fully completed and put into use, and Cainiao Village established more than 900 county logistics distribution centers, together with sales warehouses across the country, Taobao Tmall, Hema, RT-Mart and other online and offline sales channels, forming a digital warehousing and distribution network, which can directly supply 1 million tons of fresh agricultural products to the whole country's tables every year .

As epidemic prevention and control becomes normalized, digital transformation has become a common denominator for the development of various industries, especially small and medium-sized enterprises. " While promoting consumption growth and meeting consumer demand, we have supported merchants in coping with the impact of the epidemic by providing digital transformation solutions , " said Zhang Yong, Chairman and CEO of Alibaba Group . Looking forward to the future, we are confident that we will continue to create value for customers, lead innovation, and contribute to society.

Alibaba

Financial Report

Third quarter