1. Alibaba Group
Strategic Analysis / What’s next for Alibaba Group?
Digital Quarterly, June 2014

2. 2
Table of Content
1. Corporate Overview
2. B2B & B2C Services Analysis
3. Payment & Financial Services Analysis
4. Key Financials Analysis
5. Key Metrics & Indicators
6. Acquisitions & Strategic Investments
7. Focus: Mobile (Commerce) Strategy
8. Focus: Logistics & Delivery Strategy
9. Competition & Growth Strategy
10. Strategic Assessment
11. Data Factbook
Copyright © 2014 Digital Quarterly (Dr. Ralf Kaumanns ) – Confidential

3. 3
Get in touch with us to receive your copy of the most comprehensive strategic
analysis of Alibaba Group available (research@digital-quarterly.com)
This analysis addresses the core questions regarding Alibaba Group:
› What is the current status quo of Alibaba Group in domestic and international markets by main business segment?
› Which growth strategies and competitive strategies can be observed for Alibaba in general and by line of business?
› What are the most promising growth areas for Alibaba Group within the next 3 years?
› What are the competitive strategies in focus areas like payment and financial services, logistics and delivery as well as mobile?
About the Strategic Analysis
› 150 Pages Plus, covering all relevant topics and information available about Aibaba Group (see Table of Content)
› Assessment of current strategies and predictions “What’s next for Alibaba Group?”
› Analyzed by a very experienced team of strategy advisors with deep knowledge in digital markets
License & Commercial Offer
› Full company license with an affordable price
› Price on application (POA); send us your request at research@digital-quarterly.com
Copyright © 2014 Digital Quarterly (Dr. Ralf Kaumanns ) – Confidential

4. 4
Alibaba Marketplaces Eco-System (High-Level Overview)
Note / Source: Digital Quarterly Analysis *Comment: Launch of a new B2C branded stores marketplace in U.S. market in order to push intl. revenues
Buying
Selling
Wholesale
Sellers
Wholesale
Marketplaces
Retail
Sellers
Retail
Marketplaces
Buyers (Consumers &
Wholesale Buyers
Branded
retailers
Chinese
Wholesalers &
Manufacturers
Intl. Wholesalers
&Manufacturers
Chinese
Consumers
Intl.
Consumers
Intl.
Wholesale
Buyers
1688.com
Alibaba.com
Taobao
Tmall &
Tmall Intl.
AliExpress
Juhuasuan
SMB
retailers
11main*
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Send us your request at research@digital-quarterly.com

5. 5
Taobao saw a tremendous growth in the past years and is about reaching its de-
facto saturation point relative to the XXX million Chinese Internet users
Note / Source: Alibaba Group (only original data from press releases and financial reporting applied, no third-party data), Digital Quarterly Analysis
- Taobao Registered Users / Buyers (China only) -
0
100
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700
Jan
06
May
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14
Taobao - Registered Users / Buyers (Million) Poly. (Taobao - Registered Users / Buyers (Million))
Inmillion
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Send us your request at research@digital-quarterly.com

6. 6
Alipay has a tremendous growth and outperformed PayPal in terms of active
accounts by factor 5x while the overall transaction value is still lower
Copyright © 2014 Digital Quarterly (Dr. Ralf Kaumanns ) – Confidential
Alipay outgrew PayPal by number of accounts
› No. of accounts is 5x higher than PayPal
› Transaction value is lower than PayPal
› Majority of accounts from Chinese market
› 2.5 bn. transactions in 2013 (3 bn. PayPal)
› Penetration 2013: ∼300 million real-name users,
∼50% of China's 618 million internet users
Alipay has a very broad customer coverage
› Coverage (1): Business accounts from Alibaba
(sellers and domestic & international buyers)
› Coverage (2): Consumer accounts (mainly
Taobao, Tmall), domestic & international
› Coverage (3): Accounts from Third-Party Sites
› Share of domestic vs. international unknown
Source: Digital Quarterly Analysis
Note: Data for PayPal from eBay Investor Relations; Data for Aplipay estimated based on irregular announcements from Alibaba Group
130
250
400
620
700
820
70 81 94 106
123
143
0
100
200
300
400
500
600
700
800
900
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Active Alipay Accounts (Mil.) Active PayPal Accounts (Mil.)
- Alipay Active Accounts 2008-2013 (vs. PayPal) -
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7. 7
Alibaba Group is building a comprehensive mobile ecosystem covering network
layer, devices layer and services layer based on a long-term strategy
Source: Digital Quarterly Analysis
Applications
Services
Layer
Devices
Layer
Network
Layer
Payment
Services
Cloud
Services
Mobile Browser
Mobile Operating System
Mobile Devices
Mobile Network
Data Tariffs
- Alibaba Mobile Ecosystem -
Developer
Services
Alibaba is building a comprehensive mobile ecosystem
› Alibaba moves into all relevant area of mobile technologies
› Building own capabilities or leverage strategic partnerships
› Following similar strategies like Google and/or Amazon
› Comprehensive approach covering services, devices and network
Achieving more control and secure the successful business model
› Secure its strong position in Mobile Commerce
› Manage to transformation towards mobile usage
› Laying the foundation for new offerings (esp. O2O services)
› Achieving more control and suppressing competition
› Changing competitive forces in domestic e-commerce market
Copyright © 2014 Digital Quarterly (Dr. Ralf Kaumanns ) – Confidential
Send us your request at research@digital-quarterly.com

8. 8
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