Chinese digital philanthropist entrepreneursComments Off
Discover the philanthropist entrepreneurs in China
Chinese CEO’s are turning into real philanthropists. According to Harvard.edu, TOP 100 China’s greatest donors have contributed in 2015 for 0,03% of China’s GDP, donated more than 3,8 billion USD and most of them decided to invest in Education or Environment. Also, most of them gave back to their hometown and have in average 54 years old. The most generous entrepreneur in China is He Xiangjian, founder of Midea Group, a household appliance company with a donation of 400 million USD over the year.
In 2014, Jack Ma, co-founder of Alibaba, 29th richest person worldwide, second in China, as well as his partner Joe Tsai, started the philanthropic trend in the Chinese IT industry by creating trust funds with option shares which account for about 2% of the actual total of Alibaba’s equity. M. Ma has been an active player in the charity scene in China since 2009 when he took part in some of his friends’ charities (Jet Li).
His trust fund mainly focuses on projects involving the environment (water issues) health, education, and culture. The creation of non-governmental organisations in China only started a couple of years ago mainly because of the Chinese government strict rules, unwilling to share more power with individuals and corporations. It’s very common in China to see NGO not being “officially” charities but business companies. Actually, even some NGO’s in China are run like normal businesses.
To follow their footsteps, other Chinese wealthy entrepreneurs decided to give it a go. Early last month, in April 2016, Ma “Pony” Huanteng decided to help the Chinese population by opening a trust fund dedicated to charity. His donation equals to 100 million shares from his company.
Ma “Pony” Huanteng is the CEO of the Chinese group Tencent. A social media giant in China, creator of QQ Tencent a couple of years ago and of the now well-known WeChat (Weixin in Chinese). He is a net worth of 19 billion USD, is 44 years old and graduated from Shenzhen University. He is now the third richest man in China. Tencent is a high-tech group offering several services in the IT, The Internet and social media industry. The company’s value has, since 2015, exceeded 200 billion USD.
As of today, M. Ma owns 833 million shares of Tencent. The focus of the new organisation would be education, environment, education and other fields, which needs support.
To conclude, we can see that China is not only growing economically but is also being more open minded. Another good example of philanthropy in the digital industry overseas is Mark Zuckerberg and his wife, who decided to offer 99% of their Facebook shares.
5 key players of the e-commerce market in ChinaComments Off
E-commerce is about to reach 10% at the end of commerce market in China this year. It has easily become the largest online market place in the world since it China’s online B2C exceeded the American one in 2012. The online B2C is indeed the more important part of the market in China.
Here are the most successful players of the e-commerce in China:
The e-commerce in China is clearly dominated by the Alibaba group. It was founded in 1999 by Jack Ma, the original website of Alibaba offered a B2B platform for Chinese companies. Alibaba owned a 44.82% market share in the B2B online market in Q2 2014.
Over the years, several websites and services were created to meet the needs of the Chinese citizens online.
The group therefore created Taobao, a C2C website in 2003 which benefited from an enormous success among the online Chinese shoppers. Mostly because the website adapted to the Chinese way of shopping. Taobao therefore allowed its customers to bargain online and to pay only after they had received and inspected the quality of the goods they ordered.
A B2C website came in 2008: Tmall, which owed a 57, 36% market share of the Chinese B2C online retail market in Q2 2014. The B2C platform allows local Chinese and international businesses to sell quality, branded goods to consumers in mainland China.
The Alibaba group also created its own payment system, Alipay, in 2004. The group is owned by Yahoo at 40% since the American internet giant helped them develop in the mid-2000s by investing one billion dollars in Alibaba in exchange for a 40% stake in the company. A good bet since Alibaba is now famous all over China.
As for this B2C retailer, it was created in 1998 in Beijing under the name of 360buy.com, which changed last year in JingDong. It was ranked second largest player of the Chinese B2C online retail market with a 21.22% market share in Q2 2014. The e-tailer offers to its 60 million registered users a range of 12 categories of products from home appliances to clothing. In 2013 more than 500 000 orders were placed on the website every day. Chinese online shoppers like this website because it is like a wholesaler, they can address directly to JingDong if a problem occurs. Which differs from Tmall where sellers are all individual companies.
In March this year, the e-tailer signed a partnership with Tencent, to allow users on both platforms to transit from one to the other directly allowing JingDong to enter the mobile market more easily.JingDong also owns a C2C platform called PaiPai.com that is currently planning to launch a mobile app enabling individuals merchants to create micro-shops directly from their smartphones.
The company based in Shanghai and created in 2008 quickly became one of the top online retailers of the country. The company developed quickly thanks to an always larger range of product classes.This rapid growth was made possible thanks to an agreement reached with Wal- Mart in 2011. The American distributor agreed to invest in the development of the Chinese online retailer against a 51% stake. Yihaodian since managed to build a base of more than 60 million customers. Those e-shoppers placed an average of 300,000 to 400,000 orders per day in 2014.
Apart from the affordable prices and the large range of products offered, the e-tailer is also popular thanks to the speed of its deliveries that is guaranteed within an hour in Shanghai. Its efficient customer service is also very appreciated by the shoppers.
Chinese e-commerce is therefore largely dominated by B2C websites such as Tmall, JingDong and Yihaodian but most of them also have C2C platforms of their own to play on the two branchs of the market. More rarely some have B2B websites like Alibaba, the market’s leader that is number one on every branch that e-commerce has to offer. Recently another battlefield has open for the different players of e-commerce to have fierce competition on: m-commerce. M-commerce indeed went from inexistent in 2009 to 10% of the e-commerce in 2013 and experts said it will reach 20% by 2016. The major players of e-commerce therefore have to adapt their strategies to this channel.
To go further:
The next evolutionary step for e-commerce in China is e-mobileComments Off
The day the e-commerce will go mobile
When the e-commerce industry in Western countries is becoming mature, in China, it is a huge market that has a lot of untapped potential! The opportunity of having a 600 million clients visibility is attracting businesses from all over the world so why not you ?
Maybe some numbers will help: in 2013, it is 618 million Chinese that were using Internet with a penetration rate of 46% of and it is not even half of the population. Within this population, 300 million of them were already shopping on-line last year.
Who is controlling the Chinese Internet?
The three giants on the Chinese Internet are well known in the Industry : Baidu (the favorite search engine of Chinese), Tencent (which owns WeChat and SnapChat) and Alibaba (which owns Weibo and Tango). They all have a net profit of at least 1,465 billion euros and enjoy a growth of sales and turn over very advantageous.
A huge potential in the B2C Market 2013
If Internet used to be the place where customers were making business with customers the trend is now turning around. In 2010, only 13.7% of transactions were from Business to Customer. And the Customer to Customer type of transactions ruled 86.3% of the Internet. Now, B2C represent 35.1% of the market and this is far from over. In 2017, experts expect that they will be more B2C transactions (52.4%) than C2C transactions (47.6%).
The opportunity of smart phone on e-commerce
In 2013, if the Internet users were 618 million, the mobile Internet users were already 500 million. The penetration on this sector has a 83% growth! It is the highest of the world(followed by South Africa and Hong Kong). Concerning tablet, it is the first one in the world as well with 39% (followed by Mexico and Singapore). What does that mean? It means Chinese will more likely buy through their Smart phone that any other nationality.
Indeed, there are already 69% of Chinese that bought a product on their mobile compared to 46% of American. China passed the hurdle mid 2013. By this time, more people were shopping through their smartphone (81%) than their computer (70%). On Double 11, which is on Nov 11 nicknamed Bachelor’s Day by Chinese, 127 million consumers spent 650 billion euros on Taobao Mobile. It is 560% more than in 2012 and convered 21% of all Taobao’s transactions. This website is one of the favorite of Chinese, 2/3rd of netizens (400 million) used it in 2013.
The mobile shopping market in China has showed incredible growth and opportunity. In 2011, it generated “only” 1.37 billion euros transactions, in 2012, already 7.44 billion euros and in 2013 almost 20 billion euros. In 3 years, this sector has experienced a huge boom and by 2017, transactions should reach 117 billion euros. How come ? Thanks to the new means of mobile payment, the penetration of smartphones in the countryside, the increase of the 3G coverage and the WIFI hotspots and the Offline to Online tools.
Who will be smart enough to catch this wave though ? Taobao Mobile already has 81.45% of the market share and Jingdong Mobile 6.67% but trend can still change.
What are the trends expected in the future?
In addition, the forecasts are all very optimistic when it comes to the evolution of this sector. In 2012, the total transaction value was equal to 354 billion euros and in 2013 over 218 billion euros. With a 40% growth, from one year to another, the sector should expect to reach 488 billion euros transaction by 2017. It is the biggest on-line e-commerce market in the world. Experts predict that by 2020, it will be bigger than the e-commerce of USA, Great Britain, Germany, France and Japan combined.
Analysts said Alibaba may acquire Yahoo all assets in AsianComments Off
Alibaba had already hired Duberstein Group (an American company), they will negotiate for acquiring Yahoo asset. Analysts thought Alibaba might buy Yahoo all Asian assets.
Softbank Corporation who has a 30 percent stake in Alibaba and also is Yahoo’s a partner in Japan becomes a lobby group with Alibaba.
September, Alibaba founder Jack Ma had expressed: if opportunity is acceptable, he is interested in the Yahoo.
The lobby company in Washington can help Alibaba respond to U.S. political opposition, avoid the internet control and inspection and so on, to let Mr Ma acquire the assets of Yahoo.
“Sometime ‘national security’ is just an excuse, the real reason is the commercial purpose. ” Marbridge Consulting, executive director, Mark Natkin point out:” I don’t think that there will be a big problem about Alibaba acquires Yahoo, the users can still share or keep date follow their inclinations. Whether or not concern the company of attribution where the user decisions. ”
Sale situation will become clear
Alibaba, Softbank and Yahoo have been looking for good means to be able to disentangle the complicated relationship among them. An insider says, early in the autumn, Alibaba had hired Duberstein and the private equity firms to deal with the acquisition about Yahoo. Although these private equity firms had attempted to buy all assets of Yahoo, but the result of discussion, they thought of selling Yahoo off in pieces maybe was a better idea. American assets will be belonged to the purchase group, while Asian assets will be sold to Alibaba and Softbank.
An insider says, at present the situation of the acquisition about Yahoo has became clear. Yahoo will plan to sell the Asian assets to Alibaba and Softbank. The part of the value is $17 billion. Alibaba can also buy-back Yahoo had 40% of the group holding shares, getting the ownership Yahoo in Japan.
Yahoo has been finding a reasonable way to deal with the business and reform the style, to copy with Google and Facebook.
In early December, the media had reported that a few lenders were considering for Alibaba providing $4 billion loans to help the company buy-back Yahoo had 40% of the group holding shares.
The background of lobbying companys
According to the U.S. congressional record, Alibaba had submitted some documents, preliminarily revealed the company intent to lobby the U.S. government.
Kenneth Duberstein is responsible for Duberstein group who was served as a staff of the officials in White House when President Reagan. The company also includes BP, Goldman sachs, Pfizre and so on.
In addition, Duberstein says, American law firms like Wachtell, Lipton and Rosen & Katz will serve as the lobbying team of Alibaba and Duberstein.
December 23, the United States senate office had received the related records of lobbying team, then it issued to online. But the lobby about the takeover of Yahoo maybe has already started.
According to the law of the United States, lobby companies must disclosure of relevant files to the public in 45 days when they were in contact with officials formally. Alibaba’s record says, the matters had already launched on December 1, 2011 formally.
Alibaba Buy Auctiva(0)
The Chinese company said it has entered into an agreement to buy Auctiva, which provides listing and marketing tools to vendors on e-commerce websites like eBay.
Source : Konaxis
Alibaba.com Eyeing Acquisitions(0)
However, Wei declined to give details on acquisition targets for his company, which is the listed unit of Alibaba Group, but said “the priority will be to further boost AliExpress.com.”
AliExpress, which Alibaba formally launched in April after a beta period, is a U.S.-focused online wholesale platform in which Alibaba has said it plans to invest $100 million.
As part of that investment, Alibaba already announced its first U.S. acquisition in June with plans to buy Vendio Services Inc., which helps merchants sell goods on sites such as Amazon.com Inc. and eBay Inc.
Alibaba in April also said it would start accepting payments from users of eBay’s PayPal service on AliExpress. Alibaba plans to enable more payment platforms on AliExpress to ensure payment troubles don’t deter users, Wei said, declining to give details on possible partnerships.
The U.S., India and Japan remain Alibaba’s highest-priority overseas markets, but for the next three years Alibaba will focus on investment in those areas before seeking more benefits from them later, Wei said.
Source : Konaxis
Alibaba for the first time carry out overseas acquisitions to enter the U.S. market(0)
This is the first overseas acquisition carried out since the establishment of Alibaba. Alibaba claimed the acquisition was a substantial deployment into the U.S. market.
Located in Silicon Valley, California, Vendio Company has 11 years experiences in online retail services, currently helping more than 80,000 independent online B2C retailers sell products by eBay, Amazon with more than 2 billion U.S. dollars transactions.
According to Alibaba disclosure, after Vendio was acquired, it would be integrated into Alibaba “global express sale” in order to help “Made in China” to enter the U.S. consumer market as online express train.
Alibaba CEO Wei Zhe commented the docking of platforms would attract more than 80,000 quality buyers and potential purchasing client base.
It was said that this acquisition would end in July 2010 and Vendio would keep its brand, business and team.
Alibaba.com Buys U.S. E-Commerce(0)
The acquisition will give Alibaba access to more than 80,000 U.S. small merchants that use the Internet to buy products, the Hangzhou, eastern China-based company said in a statement yesterday. Terms of the deal for closely held Vendio weren?t disclosed.
Alibaba, backed by billionaire investor George Soros, is challenging U.S. sites eBay Inc. and Amazon.com Inc. for international online buyers and sellers after dominating the e-commerce market in China. Chief Executive Officer David Wei aims to boost overseas revenue to a third of Alibaba?s total, from about 2 percent, he said last year.
The transaction is expected to be completed next month, Alibaba said. Mike Effle, chief operating officer of San Mateo, California-based Vendio, will become chief executive officer of the business, while Vendio CEO Rodrigo Sales will be a strategic adviser, Alibaba said.
The acquisition is part of a $100 million investment plan announced in April for Alibaba?s AliExpress, the Chinese company said. AliExpress is an e-commerce site targeted at international buyers.
Alibaba?s goal is to improve Vendio merchants? profit margin by 30 percent to 50 percent, ?as quickly as possible,? Wei said.
Source : Konaxis
Alibaba Vice president complained that Express services cannot keep up the pace of e-commerce(0)
After Liang Chunxiao made the above remarks, the hot Taobao logistics strategy was above the surface. June 18, Taobao launched “Logistics Bao” platform, which means its large logistics is above the surface. Gong, director of logistics platform Taobao said logistics would interconnect taobao and logistics, in order to solve the current online stores problems. It is reported that, independent B2C Web site can also use the platform.
Data showed that by the end of 2009, courier companies had a collective price increases for Taobao sellers. Since this year, alibaba was frequently involved in the logistics industry: in March it announced purchasing shares of private courier companies – xing chen ji bian; in May, its online wholesale e-commerce platform “global express sell”, and formed the strategic alliance with world’s largest UPS logistics business.
Liang Chunxiao said: “among the three big mountains that hinder the development of electronic commerce in China, credit and payment have been solved, but logistics still have not been solved yet, but meet more and more serious challenges.”
Alibaba and Softbank Online Trading Platform(0)
The combined C2C online trading platform will have 250 million registered users and 450 million products. It will help Japanese vendors sell their products to Chinese consumers, and Chinese firms will be able to serve Japanese consumers.
“It will be a very important opportunity for small and medium businesses in the two countries to expand distribution channels and online trading will continue to be a very strong contributor to the Asian economy,” said Masayoshi Son, president and chairman of the board of Softbank Corp.
Vendors who aim to sell on the new platform will go through a screening process and will be subject to Customs regulations in the two countries. Buyers may pay extra fees for logistics if they purchase goods from overseas vendors. The companies will release details in early June.
Taobao.com and Yahoo Japan will each launch a new sub-section next month to provide Chinese users with Japanese products and Yahoo Japan’s users will get access to Chinese products on Taobao.com.
Softbank is the controlling shareholder of Yahoo Japan and the second-biggest shareholder of Alibaba Group.
Source : Konaxis