Tag: jack ma

  • Jack Ma’s strategy in final letter to shareholders

    Jack Ma’s strategy in final letter to shareholders

    In his final letter to shareholders, Alibaba founder and executive chairman Jack Ma made a case for globalisation despite recent uncertainties in US-China trade relations, consumer trends, stock markets and the manufacturing industry.

    This is the third time that Alibaba has faced a setback in the global economy over the 19 years, but experience suggests there are opportunities behind the anxiety and friction.

    “The only question is how we should pivot,” he said.

    “Monumental challenges give rise to monumental opportunities, and Alibaba is well-positioned because we are adept at weathering adversity.”

    Ma added that Alibaba’s mission to make it easy to do business anywhere is precisely suited to the current environment, in which doing business is becoming harder.

    “We have spent the past three years to develop a trading system that serves small and medium enterprises and consumers around the world,” he said, referencing the company’s goals of ‘global buy’, ‘global sell’, ‘global delivery’ and ‘global travel’.

    “I am excited that we are able to deploy Alibaba’s technology, experience and resources, thereby establishing and improving a new and inclusive global trade system for the future.”

    Alibaba claims to have helped 200,000 brick-and-mortar retailers to implement online and offline integration in line with its New Retail vision.

    Ma reaffirmed the company’s commitment to sustainable growth for at least 102 years, with the goal of serving two billion global consumers, empowering 10 million profitable businesses and creating 100 million jobs by 2036, even as he prepares to step down from the board in September 2019, when CEO Daniel Zhang will take over his role as executive chairman.

    But Ma said he will “always be happy to engage in any discussion about the company at any time in the future” and will remain a shareholder in the company and partner in the Alibaba partnership.

    He thanked Alibaba’s shareholders for their trust and support and promised that the company would not stop innovating to solve problems and create value, market opportunity and profitability.

  • Alibaba’s Jack Ma opens tech institute in Indonesia

    Alibaba’s Jack Ma opens tech institute in Indonesia

    Jack Ma, executive chairman of China’s Alibaba Group Holding, plans to open an institute to train thousands of tech entrepreneurs in Indonesia, where he is already an adviser to the government on e-commerce.

    Ma did not say when the Jack Ma Institute of Entrepreneurs would launch, but said the aim was to train 1,000 tech leaders a year over the next 10 years.

    “We’re giving a lot of opportunities for young Indonesian people to learn,” Ma said after meeting Indonesian ministers on the sidelines of the International Monetary Fund and World Bank meetings being hosted by Indonesia.

    The co-founder of Alibaba, China’s biggest e-commerce firm, said it is important for Indonesia to invest in human capital because “only when people improve, when people’s minds change, when people’s skills improve, then we can enter the digital period”.

    Indonesia has a shortage of trained engineers in technology and the institute will also train hundreds of developers and engineers on cloud computing to help make Indonesian businesses more digital-savvy.

    The country is a key market for Alibaba, whose cloud computing arm Alibaba Cloud launched a data center in Indonesia in March.

    Ma said his company would continue to invest “not only on e-commerce, but also cloud computing, logistics and…infrastructure” in Indonesia, while also helping local businesses to grow.

    Indonesian Communications Minister Rudiantara stated last month that Indonesia was partnering with Ma to look into ways to harness Alibaba’s businesses to increase its exports, particularly to China.

    McKinsey estimated in a report released on Aug. 30 that the value of Indonesia’s e-commerce market will surge to at least $55 billion (£42 billion) by 2022 from $8 billion in 2017.

    Last week, Ma told a panel discussion at the IMF and World Bank meetings that “the internet is designed for developing countries”, with “great opportunities in Africa” also.

  • Blockchain Yet to Prove Its Use to the World according to Jack Ma

    Blockchain Yet to Prove Its Use to the World according to Jack Ma

    Alibaba chief Jack Ma thinks blockchain tech is pretty meaningless – unless it helps us transform the manufacturing industry and protect the environment.

    In a keynote at World Artificial Intelligence Conference in China, the star entrepreneur shared his beliefs that budding technologies like blockchain, artificial intelligence (AI), and the Internet of Things (IoT) have yet to prove their utility to the world.

    For the record, while he did touch on blockchain, Ma focused his speech on some common misconceptions about AI and what role the technology can play in the future.

    Although the entrepreneur stopped short of revealing whether and how Alibaba intends to integrate blockchain into its services, it appears the company is no stranger to distributed ledger tech (DLT). Indeed, reports suggest Alibaba and IBM hold 90 percent of all DLT-related patents worldwide.

    “The data age is major opportunity for manufacturers to reform the industry,” Ma said at the conference. “But blockchain and IoT will be meaningless tech unless they can promote the transformation of the manufacturing industry, and the evolution of the society towards a greener and more inclusive direction.”

    Still, it turns out that wasn’t enough to stop Alibaba – and fellow Chinese tech giants Baidu and Tencent – from banning all cryptocurrency-related activities from its platform. A search for the two forums named “Digital Currency Bar” and “Virtual Currency Bar” shows that they have been temporarily closed in accordance with relevant laws, regulations, and policies.

    On the other hand, Alibaba and Tencent are cracking down on cryptocurrency transactions on their mobile payment services.

    WeChat, Tencent’s social media, messenger services, and mobile payments app, banned a series of cryptocurrency media outlets for spreading hype in violation of Chinese law.

    Now, Tencent has said in a statement that the company will also ban cryptocurrency trading on WeChat. The company will monitor daily transactions in real-time and block any cryptocurrency trading related activity.

    Alibaba Group’s Ant Financial said that it will take similar measures on its mobile payments app Alipay. The company will restrict or block all accounts that indulge in cryptocurrency trading.

  • Indonesia to Work With Alibaba’s Jack Ma to Increase Exports: Minister

    Indonesia to Work With Alibaba’s Jack Ma to Increase Exports: Minister

    Indonesia will partner with Alibaba chief executive Jack Ma to look into ways to use of the e-commerce giant’s ecosystem to increase its exports, particularly to China, Communications Minister Rudiantara said on Sunday.

    “We are also discussing how to work together to develop tech talents to meet the needs of Indonesia and the region,” Rudiantara said after meeting Ma and President Joko “Jokowi” Widodo on Saturday.

    The Alibaba founder and chief executive, who was in Jakarta for the 2018 Asian Games, was named an e-commerce adviser to the Indonesian government in 2017.

    McKinsey estimated in a report released on Aug. 30 that the value of Indonesia’s e-commerce market will grow to at least $55 billion by 2022 from $8 billion in 2017.

    Alibaba is China’s biggest e-commerce firm, but its ecosystem includes payments platform Alipay and a cloud computing arm.

    Rudiantara told Reuters the details of the deal would be finalized during a second visit by Ma in October.

  • Not Jack Ma, this is the richest guy in Asia

    Not Jack Ma, this is the richest guy in Asia

    Mukesh Ambani, Reliance Industries chairman has beaten Alibaba founder Jack Ma to become thr richest man in Asia on Friday, according to a report by Bloomberg.

    As per the report, Ambani’s estimated wealth rose to a whooping 44.3 billion dollars on Friday as Reliance Industries Ltd’s shares shot up to 1.6 per cent. Alibaba Group founder Ma’s wealth stood at 44 billion dollars at close of trade on Thursday in the US.

    Reliance doubled its petrochemicals capacity, adding 4 billion dollars to Ambani’s fortune in 2018. According to the report, Ambani also announced his plans to leverage his 215 million telecom subscribers to expand his e-commerce offerings.

    On the other hand, Ma lost 1.4 billion dollars in wealth this year.

    The shares of RIL rose for the fifth consecutive session on Thursday, and surged to a 52-week high of Rs 1,091 on the BSE, amid aggressive business plan announced in the AGM, ahead of its June quarter earnings.

    The company announced aggressive business plan at its annual general meeting (AGM) held last week. The stock has been on an uptrend ever since and has gained 13.05 per cent since July 5.

    At the AGM, Mukesh Ambani had unveiled an ultra high-speed fixed line fibre broadband for homes and enterprises across 1,100 cities and announced plans for an e-commerce platform that may rival likes of Amazon.

     

  • These Chinese giants make Facebook and Google look tame

    These Chinese giants make Facebook and Google look tame

    The technology world’s most bruising battle for supremacy is taking place in China. And it could point to Big Tech’s future everywhere else, too.

    Tencent Holdings and the Alibaba Group are ratcheting up their no-holds-barred contest to dominate the ways 770 million internet users communicate, shop, get around, entertain themselves and even invest their savings and visit the doctor.

    The two titans long ago branched out from their core businesses — games and social media for Tencent, e-commerce for Alibaba — to duke it out in ever more realms of Chinese life. They have competed in messaging, microblogging and delivering takeaway food. They go head-to-head in video streaming and cloud computing.

    Today, their fiercest fight is over digital money kept on smartphones. Mobile payments have transformed the Chinese economy. Both giants, plus Ant Financial, an Alibaba sister firm, are spending big to gobble up pieces of the action.

    China’s internet powerhouses stand at the forefront of the nation’s galloping high-tech progress — a surge that has been brought into sharp focus by the Trump administration’s efforts to counter it. On one hand, the standoff over the Chinese telecom equipment-maker ZTE has exposed, to many in China, the degree to which the country still lags in core technologies such as microchips.

    But in the internet realm, China still offers a spooky potential vision of the future, one in which online behemoths like Tencent and Alibaba become the gatekeepers to the entire economy, wielding immense power over traditional industries and becoming very, very rich in the process.

    At a conference in December in the Chinese city of Guangzhou, Tencent’s chief executive Pony Ma said he felt the two companies were competing in “too many” areas.

    “Sometimes I think, ‘Ah, we’re competing in this now, too? All right then,’” Ma said, chuckling. “It’s a little frustrating.”

    A duopoly this broad could not be easily replicated in other countries,  for example the United States. Entrenched competitors and the threat of government intervention generally keep the likes of Apple, Amazon, Google and Facebook from expanding pell-mell into adjacent businesses. All of them have sprawled and overlapped mightily, but Amazon, with its forays into groceries, pharmacies, health care and more, might be the furthest along towards creating an inescapable commercial universe.

    Still, with the European Union enacting tough new privacy laws, and some in the United States eager to follow, Google and Facebook could soon be forced to find ways to make money beyond selling users’ personal information to advertisers, said Raj Rajgopal, president of digital business strategy at Virtusa Corp, a consulting firm.

    “As profitability reduces, they’ll say, ‘Now I need to monetise my customer base,’” Rajgopal said. “The innovation we’re seeing in China could be seen in the US in the next three to five years,” he added. “Customers are demanding that.”

    China’s internet titans have a powerful ally found nowhere else, though: the Chinese government. Tencent and Alibaba have avoided anti-monopoly clampdowns by staying in Beijing’s good graces, said Hu Wenyou, a partner at the Beijing law firm Yingke. Their sheer size also makes them easier for authorities to control. They simply have too much to lose.

    “If you can become so big, and so successful in so many areas, this in itself shows that you must have maintained very good, very friendly relations with the government,” Hu said.

    Neither giant is done getting bigger.

    Each has a market capitalisation of close to $US500 billion ($663 billion), making them among the most highly valued technology firms on the planet. Google and Facebook still claim more users, but the Chinese heavyweights arguably do more — and more, and more — for theirs.

    The latest battleground? Brick-and-mortar stores. Alibaba has spent great sums — $US2.9 billion on a supermarket chain, $US2.6 billion on a department store and mall operator — to conquer the real world. Tencent has followed suit with its own retail partnerships and investments.

    Once the companies have locked people into their payment systems, they can become the enablers of commerce and financial services of even more kinds. In a sign of investors’ excitement about the possibilities, Ant Financial is making plans to go public, in a blockbuster stock offering that could give the company a market value larger than Goldman Sachs.

    China has become a model for tech’s world-swallowing tendencies partly out of circumstance.

    With the country’s high-speed churn of well-funded startups, planting flags on new turf is often the only way for large players not to be constantly losing ground.

    Also, both Alibaba and Tencent have struggled to make much money outside their home market. That means their surest way to keep growing is to get more deeply involved in more areas of their Chinese users’ lives.

    Those lives are riper for tech disruption than lives in the West. In China, small stores dominate retail. Hospitals are crowded and doctors overworked. Most people do not have credit cards. These are easier business opportunities for Alibaba and Tencent than they would be for Amazon or Facebook.

    In a report this week, Morgan Stanley predicted that by 2027, the total market in China in which Alibaba could be making money will be worth $US19 trillion — more than Amazon’s potential market worldwide.

  • Alibaba in a smart deal with the Thai government

    Alibaba in a smart deal with the Thai government

    China’s Alibaba Group will partner with the Thai government to build a smart digital trading hub in Thailand while also working to develop its capabilities in e-commerce, digital logistics, tourism and training.

    Alibaba says it will work with Thailand on everything from boosting efficiencies in trade to educating Thai entrepreneurs and SMEs in digital commerce. The partnership will give Thailand access to technologies and processes that can help advance its economy, while Alibaba gains a stronger foothold in an important market in Southeast Asia.

    Local news media has valued Alibaba’s Thai investment commitments at THB11 billion (US$352 million).

    The smart digital hub, in Thailand’s Eastern Economic Corridor, will use technologies from Alibaba and its logistics platform Cainiao Network to streamline trade between Thailand and China and other markets, including digitising the customs process.

    At the same time, Alibaba and the Thai government say they will develop educational initiatives for SMEs and entrepreneurs to learn best practices for e-commerce. Included are courses co-developed by Alibaba Business School and Thailand’s Ministries of Industry and Commerce, as well as training centered on the digital economy at Alibaba Business School in Hangzhou.

    Under the deal, Thailand also gains greater access to China’s consumer market. Thai products such as fragrant rice, durian and other tropical fruits are in demand in China.

    In a related move, a flagship store has been launched on Alibaba’s Tmall platform to sell Thai rice, the country’s main export.

    Alibaba’s online travel platform Fliggy is part of the arrangement because of Thailand’s popularity as a destination for Chinese tourists. Fliggy and the Tourism Authority of Thailand will work to develop smart and digital services for those visitors, including online tour guides and electronic ticketing systems.

  • Who are the wealthiest individuals in China?

    Who are the wealthiest individuals in China?

    Chinese business news website Jiemian has released its annual China Rich List, detailing the country’s wealthiest individuals.

    All 1,000 billionaires on the list have a minimum net worth of approximately RMB30 billion (US$4.7 billion), while Pony Ma, the Tencent founder who sits at the top of the list, is worth an estimated RMB282 billion.

    While some of the names on the list will be familiar to many, one pattern that might not instantly jump out is the number of people at the top who started with nothing. Of the top six names on Jiemian’s list, five of them are self-made entrepreneurs who pulled themselves up by their bootstraps. Here’s how they made their billions.

    Ma Huateng, Technology and media, Net worth RMB282.0 billion

    Ma Huateng, also known as Pony Ma, co-founded Chinese internet giant Tencent in 1998 with four Shenzhen classmates. Legend has it Ma was pulling in a monthly salary of US$176 at the time. Tencent’s breakout product was messaging service QQ, which was based on ICQ, the world’s first online messenger. Over a decade later, Tencent launched WeChat—now the most popular messenger service in the world and closing in on a billion users worldwide.

    Xu Jiayin, Real estate, Net worth RMB260.9 billion

    Xu Jiayin is the founder and chairman of Evergrande Real Estate Group, one of the largest property developers in the country with a footprint in over 170 cities nationwide. Born in small village in Henan province, Xu went on to found Evergrande in 1996, listing the company in Hong Kong in 2009. Despite being one of China’s most indebted companies, Evergrande’s shares surged almost 400 per cent in 2017, resulting in an estimated rise of 360.6 per cent, or US$26.7 billion, to Xu’s personal fortune.

    Jack Ma, E-commerce, Net worth RMB213.8 billion

    Alibaba founder Jack Ma was an English teacher in his native city of Hangzhou before he made it big with the company’s first successful e-commerce platform, Taobao. Ma famously told the press that he was rejected from 30 jobs after graduating university, including at his local KFC. Today, Alibaba is one of the world’s biggest companies, dominating China’s e-commerce market. Its affiliate Ant Financial, which operates e-wallet service Alipay, is also the most valuable fintech company in the world, worth over US$60 billion.

    Wang Jianlin, Real estate and entertainment, Net worth RMB164.7 billion

    Wang Jianlin is the founder and chairman of Dalian Wanda Group, one of China’s biggest real estate groups and the world’s largest cinema operator. After 16 years in the People’s Liberation Army, Wang entered the world of business in the late ’80s, eventually founding Dalian Wanda in 1992. Wang may have backed down from his famous posturing in 2016, where he said he wanted to “crush” Disney with his chain of theme parks, but Wanda remains a heavyweight in the world of entertainment—the group’s 2016 acquisition of Legendary Entertainment for US$3.5 billion, on top of its ownership of AMC, made Wanda Film Holdings one of the biggest film companies in the world.

    Yang Huiyan, Real estate, Net worth RMB149.4 billion

    Yang Huiyan stands out as the only person in the top six to have inherited their wealth. In 2007, at the age of 25, Yang became China’s richest person after her father transferred 70 percent of his ownership of real estate group Country Garden Holdings to her before taking the company public. Today, Yang holds the title of China’s richest woman, and hit headlines by making US$2 billion in under four days last month, thanks to a huge surge in the company’s share price.

    Wang Wei, Logistics, Net worth RMB144.4 billion

    Wang Wei is the chairman and founder of Chinese delivery company SF Express. Wang was born in Shanghai but grew up in Hong Kong, eventually starting SF Express from a small shopfront in Mong Kok after realising how difficult it was to move goods across the border. When SF was launched in ’93, Wang would personally load boxes into vans with his six employees. Today, SF employees over 80,000 couriers and owns over 80 airplanes.

  • Jack Ma : the internet rock star

    Jack Ma : the internet rock star

    In 1999, when Alibaba was founded, the first association people would make was “Ali Baba” from the Arabian literature masterpiece “One Thousand and One Nights”. Jack Ma said he chose it for this reason, it was a name able to resonate in people’s mind all over the world.

    In less than 3 years, the name Alibaba populated media all over the world and like the Arabian literary work acquired appeal internationally.

    How Jack Ma build his internet empire can be summarized in 4 pillars.

    1. The rock star billionnaire

    It is hard to find the words to describe the scale of Alibaba Group, the Chinese e-commerce business founded in 1999. It is probably best exemplified by the numbers: Every single day, 200 million people shop on Alibaba’s mobile sites and it sold $550 billion worth of merchandise in its last fiscal year.

    In May 2017, Alibaba Group announced annual revenues had gone up 56 percent to almost $23 billion, and in June investors literally gasped as it upped its growth forecast for 2017 from 45 percent to 49 percent. Its 2014 initial public offering (IPO) was the largest in history, raising $25 billion on the New York stock exchange.

    At the head of it all is Ma Yun, the 53-year-old entrepreneur known as Jack Ma, who started the company with 17 others and $50,000 in his apartment in Hangzhou, a mid-sized city near China’s east coast, known for its green hills and West Lake.

    But Ma’s childhood was frugal: he was born to a family that had very little, sharing an income of just $7 a month between six. He was 6-years-old when President Richard Nixon met Chairman Mao Zedong in 1972, a “geopolitical earthquake” event ,which opened up China to the U.S. and led to it becoming the world power it is today. It was also the start of Ma’s Chinese dream.

    His journey from rags to rock star billionaire – Ma appeared on stage dressed as Michael Jackson at Alibaba’s 18th birthday party in September 2017 in front of an audience of 40,000 – is beset with failure and rejection. Ma said he was a “loser” in his thirties, insists he is not a tech expert and was rejected from a job at KFC and as a hotel waiter and was turned down three times when he applied to university. He also claims to have little tech expertise.

    Ma’s secret? His understanding of the power of the internet in putting buyers and sellers together, and his obsession with helping small companies, via eBay-like marketplace Taobao, bulk supplier 1688.com and Alibaba.com, a business-to-business site for wholesalers. The group also has marketing services and a financial lending affiliate including PayPal-like Alipay, which has 520 million users around the world.

    Other ventures include a 51 percent stake in delivery company Cainiao, which ships an astonishing 55 million packages a day, and Alibaba Pictures, a joint venture with Steven Spielberg’s Amblin Partners.

    2. A small business vision 

    The first time Jack Ma went online was in 1995. He was at a friend’s home in Seattle and he approached the computer gingerly.

    So Ma — then an English teacher — read U.S. business books to learn about GE, Microsoft, IBM and Wal-mart. “I was so interested in English. People read books, my school mates, they read English just for learning English. I read English, because I learned so many interesting American ideas,” Ma told CNBC’s “The Brave Ones.”

    Four years after his first U.S. trip he founded Alibaba, but only three of his coworkers knew anything about technology. “I called myself at that time like a blind man riding on the back of blind tigers. Without knowing anything about technology or computer(s), we start the first company,” Ma said, speaking at an Asia Society event in 2009.

    Ma would travel across China on road shows where 100 or 200 people would turn up to listen to him, in a kind of “mass movement” to talk to business owners about why they needed to get online.

    3. Ma’s Chinese Dream

    Jack Ma was long inspired by Yahoo founder Jerry Yang and the two met when Ma was assigned by his then government employer to show him around Beijing in the 1990s.

    Ma built his vision on the American companies he saw succeeding like Yahoo and eBay, and moved its main operations to Silicon Valley around the year 2000 because he had been convinced that was the best way to build a global business.

    “Because it is so difficult to hire people who know trade in the Silicon Valley, San Francisco. So instead we hire people from New York, Miami, all arriving in San Francisco. After one month or two months, we realized that something (was) wrong …. because those people, they know trade, but they don not know anything about internet. Those people that do not know internet, they do not know anything about trade,” Ma said in an interview.

    That moment was one of the hardest for Ma. He realized as an English teacher you almost never have to say no. But as a CEO, you need to make the tough decisions. And in that case, bringing the company back to China was the tough decision that Jack Ma had to make.

    In 2003, Alibaba decided to launch an eBay-type marketplace: Taobao. To start with, it was a defensive move to slow down the American company’s march to China.

    Taobao’s major difference was that it did not charge sellers or buyers commission, so did not have a revenue model to start with. But Ma was convinced that if you put buyers and sellers together, and the sellers made money, then the site itself would too.

    4. The global dream

    Search for “lobster” on Alibaba.com and more than 1,200 products come up, from a red Canadian variety costing upwards of $1,100 per metric ton that ships live from the U.S., to frozen lobster tails for $195-plus. If a Chinese customer wants fresh cherries, they can get them sent from a company in Maryland for $300-$500 a ton.

    Ma sees a sea change in the way goods are consumed around the world. “I say, past 30 years, the domestic consumption of the United States drives the global economy and supports so many small businesses in America or China to sell things globally. Today, next 30 years, the domestic demand and power of China is going to drive millions and millions of small businesses globally,” he told Faber.

    But Ma is also worried about a world where artificial intelligence and robots take people’s jobs – and businesses must adapt. He is likely to fly for 1,000 hours next year, he said. “This is why I am traveling, talking to all the government and state leaders and telling them move fast. If they do not move fast, there’s going to be trouble. When we see something is coming, we have to prepare now. My belief is that you have to repair the roof while it is still functioning.”

    He warned that while large businesses currently dominate industry, the next century will be more about smaller companies. “So how we can empower the small businesses? You know, the small businesses, not only (can) they only sell things to their village or their own country or even their city. With the power of the internet, we can help them sell across the board,” he added.

    For Alibaba, as for Amazon, the future is not just about e-commerce. Alibaba’s cloud computing division made a modest $968 million in revenue in the year to the end of March 2017, up 121 percent year-on-year, while its digital media and entertainment businesses including YouTube-style site Youku Tudou and event ticketing agency Damai took $2.1 billion, up 271 percent.

    The aim is for people to spend more of their waking moments on the platform, according to Alibaba’s digital and entertainment chair and CEO Yu Youngfu. “To put it simply, our mission is to allow those who have fun shopping at Alibaba to truly live at Alibaba. So in addition to shopping, we would like them to spend more time watching videos with us, getting information from us and listening to music with us, to come and game with us, among many other things,” he said at an investor day in June 2017.

    Alibaba also announced a partnership with Steven Spielberg’s movie production company Amblin Partners in October 2016. Alibaba Pictures is 49.5 percent owned by Alibaba Group, and will be creating its own content as well as distributing it in China.

    Other types of business may follow, such as a QVC-style shopping site that might combine with a Netflix-type offering.

    Alibaba sees its scope far more broadly than, Amazon and eBay would. They see their scope as more like the combination of of Amazon, Facebook, Google and Netflix.

  • Some words from Jack Ma for successful start up business

    Some words from Jack Ma for successful start up business

    Jack Ma has some blunt advice to startups: “If it’s hot, forget it.”

    “By that time everyone is doing it. It’s too late,” Ma told attendees of the Jumpstarter 2017 finale at the Hong Kong Exhibition and Convention Centre last night.

    Ma, who shared the stage with Hong Kong chief executive Carrie Lam, was on hand to present US$1 million in funding to winning startups from medical, agricultural and energy sectors.

    Ma encouraged startups to pursue their dreams.

    “The advice is first you should be optimistic – a great entrepreneur is optimistic for the future. And you have to answer what problem will you solve. What way can you solve it which is different? Why are you better than anyone else?

    “The second is that you have to find a group of people who can work together. Those people who have the same ambition. Those people coming to join you not just because it is a job, but because they believe in you and they believe in the mission.

    “And the third is: What price are you going to pay for it. You don’t ask “What can I get?” You ask “What can I give?”. If you have a great idea, you may have to wait 10 years. If you think I will win this in three years, prepare for five years.”

    Ma said when he conceived Alibaba 18 years ago and went out to raise money from venture capitalists, he was rejected by all of them.

    “The first money I got from a capital fund was $50,000. I thought this would last 10 months. We even counted every cent we spent. But it lasted only four months. We were almost bankrupt.”

    He also warned startup founders to be patient.

    “Today if you are only a tractor, don’t try to put a Boeing 747 engine inside. It will destroy you. You should find the people who suit the company. I have hired a lot of vice presidents from big companies – they almost destroyed my company. I only had $5 million and a guy came in with a marketing plan $12 million. I said: How can you have $12 million? He said: “I have never made a plan below $20 million.

    “Find the right person,” said Ma.

    Tax breaks

    He urged governments if they cannot fund startups, why not reduce the tax to them.

    “I’m doing that,” interjected Lam, who has met with Ma four times since her election in July and enjoyed wide-ranging discussions on technology and business.

    Both people said they were “very optimistic” about Hong Kong’s future as a base for startups.

    Ma said that although the city is not a large market, Alibaba is interested in the talent that the city offers. Its capital and technology also appealed.

    “The reason why Hong Kong has been so successful in the past 50 years is because Hong Kong is very open-minded, and accommodates all kinds of cultures. [Hong Kong] should also welcome people from all over the world,” he said.

    “Young people in Hong Kong, don’t focus your eyes only on Hong Kong. America, Europe, anywhere there is opportunity, go there and build something and bring ideas back.”

    Lam said Hong Kong needed to review immigration policies to encourage entrepreneurs to come to the city.

    “We need more time to nurture local talent and [in the meantime] we need to bring in outside talent. Hong Kong remains very attractive to a lot of expatriates and people from the mainland,” she said.

  • Alibaba chairman Jack Ma to speak at e-payment forum in Hanoi

    Alibaba chairman Jack Ma to speak at e-payment forum in Hanoi

    Now in its third year, the forum is the country’s biggest e-payment event. World famous billionaire and Alibaba chairman Jack Ma is expected to visit Hanoi next month to attend a forum on e-payment services.

    Now in its third year, the annual Vietnam E-Payment Forum, provides an opportunity for the government, experts and businesses to sit down together and discuss the latest trends in e-payment services and the best ways to apply them in Vietnam.

    This year, mobile payment will be in the spotlight.

    As a speaker at the event, Jack Ma, founder and executive chairman of Chinese e-commerce giant Alibaba, will talk about his experiences of developing e-commerce and mobile payment services in China.

    According to iResearch, the leading provider of online audience measurement and consumer insights in China, the mobile payment market was valued at $5.5 trillion last year in China, nearly 50 times greater than that of the U.S., and Ant Financial Service, a subsidiary of Alibaba, contributed a lion’s share of 54 percent.E-payment has gradually replaced cash in Vietnam’s northern neighbor, and these days, most Chinese people pay for products and services using their smartphones.

  • How Alibaba’s Jack Ma Is Building a Truly Global Retail Empire

    How Alibaba’s Jack Ma Is Building a Truly Global Retail Empire

    Jack Ma is one of China’s richest men, with a fortune valued at nearly $30 billion. As executive chairman of Alibaba Group, he leads the dominant force in Chinese e-commerce, a company with a market value of $264 billion and some 450 million customers. A global ambassador for Chinese business, he spent 800 hours aloft last year—­visiting princes, Presidents, and Prime Ministers and lots of mere businesspeople too. “A professional pilot cannot travel that much, or so I’m told,” he boasts.

    Even so, the rich and powerful people who meet with Ma tend to come away from the experience with a fresh nugget of information, either about him or about the still poorly understood digital conglomerate he started with a bunch of friends 18 years ago in the provincial coastal city of Hangzhou. Jim Kim, a physician who is the president of the World Bank, met Ma four years ago over a dinner lasting more than three hours and was startled to find the billionaire wearing sandals, holding Buddhist prayer beads, and sitting cross-legged on his chair. Kim was so taken with Ma’s passion for facilitating global trade by focusing on small-business people that he’s rethinking his international development organization’s approach.

    Others are moved by Ma’s humanity. Jean Liu, president of Chinese ride-hailing startup Didi Chuxing, has known Ma for years and considers him a mentor. (Alibaba is a Didi shareholder.) She recently learned, through family connections rather than from Ma, about how he repeatedly visited a seamstress he had met after learning she was ill. Says Liu: “He genuinely cares about the people around him.”

    Then there’s the President of the United States, who met Ma for the first time a few weeks before his Inauguration. “Trump didn’t know that much about Alibaba,” reports company president ­Michael Evans, a former Goldman Sachs banker and Asia hand who helped set up the powwow. “He was fascinated to hear that Chinese consumers are interested in buying from U.S. small businesses. I don’t think that had occurred to him.” Ma used the sit-down to make a bold promise—that Alibaba would help create 1 million jobs in the U.S. over five years. The pronouncement was music to the President-elect’s ears. “It was a great meeting,” he declared before the cameras in the lobby of Trump Tower, a beaming Ma beside him. “Jack and I are going to do some great things.”

    President Trump isn’t the only one who could stand to learn more about Alibaba. Despite its heft in China and the blockbuster 2014 public offering that raised $25 billion on the New York Stock Exchange and introduced Alibaba to Western investors, Ma’s company remains a mystery to most non-Chinese. There’s a simple reason for that: Few outside the world’s second-largest economy are Alibaba customers. Ma is aware of this knowledge gap. It’s part of what drives him to keep logging frequent-flier miles to educate people about his company and his plans.

    To realize his vision—which relies on technology to buy, sell, finance, and deliver goods on Alibaba’s digital platforms around the world—Ma has been busily recasting himself of late as a global leader. Already he is the first Chinese business executive who can claim to have transcended his homeland for the world stage. In his travels, Ma promotes the lowering of trade barriers, touts his own brand of philanthropy, and supports causes such as primary-school education. His version of globalization is carefully calibrated and expansive enough to be consistent with the goals of his own President, Xi Jinping, as well as with Trump’s America-first positioning.

    As with so many effective leaders, Ma’s motives are complex. China is already a huge consumer market and one that’s still growing fast, but Ma knows that eventually he will need to conquer new territories for Alibaba to continue on its current trajectory. Like other Chinese champions, Alibaba has thrived at home while foreign competitors have thus far been stymied from entering his turf. If that changes, foreign markets will be even more crucial. Ma also needs for ­Alibaba—plagued by criticism over the profusion of counterfeit wares for sale on its sites—to develop a reputation as trusted around the world as Jack Ma is cherished by his fellow bold-faced names.

    Ma’s opportunity is unique. After centuries of stagnation, his country has recently reassumed its position as a world leader—just as Alibaba, one of its marquee corporate names, has joined the ranks of world-beating companies. With characteristic intuition, Ma, 52, seems to realize that this is his moment to go beyond merely being famous and take his place among the globe’s revered business leaders.

    -Fortune

  • Chinese ‘Taobao villages’ turning poor communities into huge online retail hubs

    Chinese ‘Taobao villages’ turning poor communities into huge online retail hubs

    Thanks to the rapid development of China’s e-commerce industry, over 1,000 “Taobao villages” across the country are turning poor communities into huge online retail hubs, creating more than 840,000 job opportunities.
    These villages are so-named because at least 10 per cent of the population living in these rural communities makes its living by selling products online-mostly on Taobao.com, the Alibaba-owned consumer-to-consumer marketplace. The e-commerce annual turnover of each village is no less than 10 million yuan.

    By selling crafts online from their hometown of Wantou Village, Boxing county in east China’s Shandong Province, villagers made online sales of over 300 million yuan ($43.5 million) last year.

    Similarly, villagers of the Shuanglongqiao Village in Nanchong, southwest China’s Sichuan province, have allured flocks of tourists, including foreigners, to stay and experience the star-level accommodation at their houses, via e-commerce platforms.

    These villages offer a glimpse into how e-commerce industry spurs the rural economic growth and the farmers’ benefits.

    Online retail sales of China’s farm produce are estimated at 220 billion yuan ($32 billion) in 2016, up over 46 per cent over the previous year, the Ministry of Agriculture said.

    The latest figures from Aliresearch showed that there were 1,311 Taobao villages across China, and over 840,000 jobs were created by the clusters.

    Experts said that popularity of Internet and improvement of rural infrastructure have to some extent removed the bottlenecks restraining their information communication and logistics. The market potential and demands of the central and western part of China, especially those remote areas, was leveraged as a result.

    They added that rural areas have been constrained by labour outflow, poor infrastructure, low incomes and lack of competitive advantages, while an e-commerce development will help optimise market environment, upgrade industrial structure and absorb more labours.

    The profitability of e-commerce has attracted a rising number of rural residents to return home, according to statistics. Thanks to the development of e-commerce, about 12 million people left for brighter futures have come back to build up the local economy.

    The development of e-commerce, as experts believe, can be attributed to favourable policies and the rising market demand.

    The recently-released first policy statement from the central authorities for 2017, usually an indicator of policy priorities, emphasised the importance of supply-side structural reform in the agricultural sector, urging the development of e-commerce industry in rural areas.

    At the same time, e-commerce and traditional businesses have cast their eyes to the rural areas. So far, Alilbaba has expanded its services to over 23,000 villages nationwide.

    Days earlier, a strategic cooperation agreement to boost rural e-commerce was inked by Sichuan province, Alibaba Group and Ant Financial Services Group, the mobile payment affiliate of Alibaba.

    Alibaba CEO Jack Ma said that his company hopes to offer a training on e-commerce and Taobao villages to those county officials of the province, explaining that their rising awareness to develop e-commerce will guarantee the business success of the province.

    Du Yifei

  • Chinese businessman Jack Ma reveals what China really wants from Australia

    Chinese businessman Jack Ma reveals what China really wants from Australia

    Alibaba chairman Jack Ma was the guest of honour at an opening ceremony for a regional headquaters of the Chinese e-commere company, in Melbourne on Saturday. “We succeed by helping others, by being helped by others. We succeed because we empower the small business,” Jack Ma told the audience.

    “So our vision in the next 20 years, we want to create 100 million jobs for the world and we want to serve two billion population of the world and we want to make 10 million small businesses profitable on our platform,” he added. He stressed that Alibaba had a global vision for its business, saying “we believe globalisation is the future.” The newly opened office in Melbourne will serve as Alibaba’s Australian and New Zealand headquarters.

    China’s second richest man, Jack Ma, who is the founder of online retail giant Alibaba, said at the opening of the first Australian and New Zealand branch of his company in Melbourne that Australia had something “unique” that China was willing to spend big bucks on.

    “Australia is a gold mine. The next gold mine,” Mr Ma said in Melbourne on Saturday.

    “The clean water, the soil and the air, this is what you have, the most unique asset.”

    With China’s pollution problem, there’s no question as to why China would want to suck up some of Australia’s environment.

    China’s “airpocalypse” has seen the country’s pollution hit toxic levels and a blanket of smog the size of Victoria covered Beijing at the end of last year.

    People are seeing this as an opportunity in Australia to export our air to China.

    Currently New Zealand uses Alibaba, basically the Chinese version of Amazon, to sell fresh air to Chinese consumers.

    Oxygen Air bottles the air in aerosol cans and sells them for about $25.

    In Australia, up to $1 million worth of air has been bottled and Alibaba could be another opportunity for air farmers to expand their business.

    Air is being bottled in the Blue Mountains, Bondi Beach and the Yarra Valley.

    Green and Clean company director John Dickinson told the Herald Sun there was a high demand from people in China and India, who hoped the fresh air might clear their lungs.

    “A lot of people see the product as a supplement to clean their lungs out with fresh Australian air,” he said.

    There are also a number of other Australian products high in demand on the Alibaba site. One of them belongs to Gold Coast woman Brynly King, who expanded her business in her garage — turning it into a multi-million dollar company.

    Banaban Virgin Coconut Oil products are now on the shelves in some department stores in China and a number of other countries, all because she started selling on Alibaba.

    Alibaba has become the world’s largest retailer since 1999 and debuted on the New York Stock Exchange in 2014, becoming the biggest IPO in history.

    Mr Ma went from a struggling schoolteacher to a man who is worth $43.6 billion and he said all it took was hard work and created his company to give small businesses the opportunity to put their products in front of consumers.

    Whether you’re a mum and dad making soaps in the garage or a millennial with an invention, Mr Ma aims to give people a place where they can sell, and gives people a chance to buy.

    Ma has a long interest in Australia, it started when he was a 15-year-old living in China, and he would hang around western hotels so he could practise his English with tourists.

    He met an Australian family from Newcastle and from there realised what the country had to offer, particularly in a business sense.

    Many Australian small businesses have put their products on Alibaba to sell to China, and made a motza, like Ms King.

    Mr Ma said China has been long known for making products but he said the country needed high quality products and service and didn’t think China today could produce that.

    He said China will work with other nations, like Australia, to move from manufacturing to domestic consumption.

    There have been concerns that Alibaba could accelerate globalisation, the process of countries integrating into one because of an interchange of world views, culture and products.

    Mr Ma doesn’t buy into that.

    “Globalisation does not create problems, it shares culture and should always be inclusive. It is the future,” he said.

    Australia is the fourth highest seller on Alibaba and Mr Ma believes the Australian office will connect more people to consumers in China and boost our exports.

    Alibaba accounts for 60 per cent of China’s sales and Australian shoppers would have most likely heard of Aliexpress, which is one of Alibaba’s market places that is English and rivals eBay.

    It sells everything from fast fashion, phone accessories and camping gear.

    Mr Ma believes the Australian branch of Alibaba will boost trades in both Australia and China.

    The Australian and New Zealand branch of Alibaba will be headed by Maggie Zhou, who was the 48th person employed at the company which now gives jobs to millions.

    Ms Zhou said she would introduce new Australian brands to the Alibaba platform.

    “A physical Alibaba headquarters is a key step in ensuring Australian businesses have the support and information they need to succeed in China and the rest of the world,” she said.

    “Longer term, Alibaba Group’s vision for the ANZ region is to build the entire operating infrastructure needed to enable local businesses to expand globally.”

  • Business globalisation must be more inclusive, says Jack Ma

    Business globalisation must be more inclusive, says Jack Ma

    Alibaba founder Jack Ma says business globalisation is good – but not yet good enough.

    I believe globalisation needs to be improved,” Ma told an audience during the second day of the World Economic Forum annual meeting in Davos overnight. “Globalisation, I think, should be inclusive globalisation.”

    Probed by interviewer New York Times columnist Andrew Ross Sorkin, Ma said his goal is to shift the balance of power in globalisation away from big companies and toward empowering small businesses. He said globalisation was largely controlled by 60,000 large businesses over the past three decades.

    “What if, in the next 30 years, we can support 6 million businesses across the board?” he asked.

    Ma’s appeal for more-equitable opportunities for success follow a commitment he made in a discussion with US President-elect Donald Trump earlier this month to facilitate creation of one million small business jobs in the US over the next five years.

    The Alibaba founder touched on that talk with Trump during his interview with Sorkin, saying he found the President-elect “open-minded, and (he) listened to what I talked about.” The two discussed how to develop US small businesses, promote US agricultural products and more trade between the US and China.

    “He was very happy about the results we had,” Ma said.

    Asked by a member of the audience about some of Trump’s prior negative comments on China’s trade surplus with the US and whether it might lead to a damaging trade war, Ma urged people to “give President Donald Trump some time. He has an open mind.” More broadly, he said a trade war “would be a disaster for the two countries and the world.”

    “I would do anything to stop it,” Ma said.

    Sorkin asked how Amazon’s business model stacked up against Alibaba’s, specifically, whose model is right and whose is wrong.

    “I hope both are right,” Ma said. “The world can never have one model. If you only have one correct model, it’s boring.”

    He said the two companies’ differing business models derive from fundamentally different philosophies. Alibaba is about empowering sellers, services companies, logistics companies and others to build their businesses, rather than owning the entire sales chain and logistic network.

    “Amazon is more like an empire,”he said. “Everything, they want to control by themselves. We want to be an ecosystem… Our philosophy is to empower others to sell, to service, to make sure others are more powerful than us.”

    Ma said he’s looking forward to the day when 10 million small business sellers can compete with a giant like Microsoft and “we can make every company become Amazon.”

    Ma again touted his company’s efforts at weeding out fakes on its platforms using big data. He said Alibaba has made great strides at detecting and taking down counterfeit products and worked with law enforcement to make cases against hundreds of sellers of counterfeiters last year. He said Alibaba spends about RMB1 billion a year on anti-counterfeiting efforts.

    “People criticise us. We are happy about the progress we make,” Ma said.

    Discussing Alibaba’s foray into Hollywood, Ma said the decision to go into movies came a couple of years ago during a periodic strategic review. He said Alibaba decided to enter show business as part of its so-called “2-H Strategy” – standing for happiness and health. He said movies are fun and enjoyable and that, as with all of its businesses, it’s taking a long-term view toward its success. Asked what he hoped to achieve through investment in entertainment, he compared and contrasted Chinese and American movies.

    “In China movies, the heroes are always dead. In American movies, heroes never die. In my movies, I want to make the hero live,” Ma said, drawing laughter from the audience.