From Strength to Strength-Alibaba Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
August 5, 2017 Alibaba Group: From Strength to Strength— An overview of the business units of the world’s largest e-commerce company Deborah Weinswig, Managing Director, FGRT deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 1 Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
Table of Contents
Executive Summary ............................................................................................................ 3
Core Commerce.................................................................................................................. 5
Taobao—C2C Retail E-Commerce ....................................................................................................................... 6
Tmall—B2C Retail E-Commerce ........................................................................................................................ 10
Juhuasuan—A Sales and Marketing Platform for Flash Sales ........................................................................... 13
1688.com—China’s Online B2B Wholesale Marketplace ................................................................................. 15
AliExpress—Global B2C Online Marketplace .................................................................................................... 18
Alibaba.com—Global Online Wholesale Marketplace ...................................................................................... 20
Lazada—South-East Asia Based E-Commerce Platform .................................................................................... 22
Digital Media and Entertainment ...................................................................................... 24
Alibaba Pictures—Digital Media and Entertainment ........................................................................................ 25
Xiami—Music-Streaming Platform .................................................................................................................... 28
Alibaba Sports—B2B Sports and E-Sports Platform .......................................................................................... 30
Youku Tudou—Video Content Platform............................................................................................................ 32
UC Web—Mobile Internet Services .................................................................................................................. 34
Innovative Initiatives ........................................................................................................ 36
DingTalk—Enterprise Messaging Platform ....................................................................................................... 37
YunOS—Cloud-Based Operating System........................................................................................................... 40
AutoNavi—Digital Map, Navigation and Location-Based Services .................................................................... 43
Alibaba Health—Online Healthcare Platform ................................................................................................... 46
Others–Local Services and Enabling Functions of Commerce ............................................. 48
Koubei—O2O Local Services ............................................................................................................................. 49
Cainiao Network—Affiliated Logistics ............................................................................................................... 51
Ant Financial—Online Financial Services Provider ............................................................................................ 53
Alipay—Third-Party Online Payment ................................................................................................................ 56
Alibaba Cloud—Provider of Cloud-Computing Services to Businesses and Entrepreneurs .............................. 60
Alimama—Data-Driven Marketing Technology Platform ................................................................................. 62
Appendix ......................................................................................................................... 65
Alibaba’s 25 Operation Units ............................................................................................................................ 66
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 2
Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
Executive Summary
Alibaba was established in 1999 as a business-to-business (B2B) portal
Alibaba is China’s largest e- connecting Chinese manufacturers to overseas buyers, essentially making it
commerce company with a easy to do business anywhere. The group has since grown to become the
vision to be a truly global largest e-commerce company in the world in terms of gross merchandise
company. volume (GMV). For the fiscal year ended March 31, 2017, Alibaba had a
GMV of ¥3.8 trillion (US$0.43 trillion) and 454 million annual active buyers
on its marketplaces.
In this report, we provide an overview of Alibaba’s different business
segments, and how they all work together using its platforms and big data
technology to enable small enterprises to compete more effectively.
Vision—“Born in China, Grow for the World”: Executive Chairman Jack Ma
has a long-term vision for the company: he wants Alibaba to become a truly
global company, providing solutions to real world problems and using e-
commerce to help globalization by making trade more inclusive. The
company’s long-term strategic goal is to serve 2 billion consumers—one-
third of the world’s total population—and to support the profitable
operation of 10 million businesses on its platforms by 2036. By fiscal year
2020, Alibaba expects GMV to more than double to reach US$1 trillion.
Alibaba—in it for the long haul: The group’s philosophy is to build long-
term strategic value and drive synergies for its global business through
organic growth and strategic acquisitions. Technology has been the driving
force behind the phenomenal growth of the Alibaba economy, and will
continue to drive it going forward. The group continuously incubates new
business units, allowing them to gain traction and to generate sustainable
cash flow.
An overview of Alibaba Group: Since its founding, the group’s operations
have been anchored in core commerce, which still accounts for 72% of total
revenues in fiscal year 2017. The company has since moved into new areas
such as digital entertainment and local services through investments and
organic growth. Our discussion is based on the broad categories of core
commerce, digital media & entertainment, innovation initiatives, local
services and enabling functions of commerce.
Source: alibabagroup.com
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 3
Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
Core commerce: Core commerce refers to the combination of retail and
wholesale commerce business. There have been two notable shifts in
Alibaba’s retail commerce platforms: first, from its origins as a marketplace
The Alibaba ecosystem to becoming a social commerce platform, allowing consumers to have fun
expanded into areas such as exploring; and second, its move from online to offline, providing consumers
digital entertainment, innovative with a seamless omnichannel experience.
initiatives, local services and
Units: Alibaba.com, 1688.com Taobao, Tmall, AliExpress, Lazada, Juhuasuan
infrastructure through
investments and organic growth.
Digital media & entertainment: This segment was established with the aim
of making the shopping experience more enjoyable for consumers. Alibaba
sees strong synergies between commerce and entertainment. Thus, it has
been building its content-generation ecosystem and leveraging its media
assets to transform commerce and bring new users and data to the Alibaba
ecosystem. The digital media and entertainment segment provides videos,
movies, newsfeeds, music, sports, literature and games to consumers.
Units: Youku Tudou, UC Web, Alibaba Sports, Alibaba Pictures, Xiami
Innovative initiatives: This segment includes service offerings that aim to
expand Alibaba’s ecosystem and foster a sense of community.
Units: YunOS, AutoNavi, DingTalk, Alibaba Health
Others—local services and enabling functions of commerce: This segment
comprises the key infrastructure of Alibaba’s ecosystem. Technologies such
as cloud computing, payments, logistics and local services which penetrate
every facet of consumers’ daily lives.
Source: alibabagroup.com
Units: Koubei, Cainiao Network, Alipay, Ant Financial, Alibaba Cloud,
Alimama
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 4
Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
Core
Commerc
e
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 5
Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
Taobao—C2C Retail E-Commerce
Taobao is China’s largest
consumer-to-consumer (C2C)
online marketplace operated by
Alibaba.
Source: world.taobao.com
Business Overview
Taobao is China’s largest consumer-to-consumer (C2C) online marketplace.
Sellers post items on virtual shops for buyers to browse and purchase using
third-party payment provider Alipay. Buyers can search and compare
products, and communicate with sellers on the Taobao website or mobile
app.
Revenue model: Taobao does not charge a sales commission, but derives
revenue from its value-added services (such as storefront design, marketing
and promotional activities).
Strategy and Value Proposition
Taobao is China’s largest C2C sales channel and strives to be a lifestyle
destination for consumers.
Ease of setting up stores: A simple registration process and minimal initial
costs make it easy for small businesses and individual merchants to set up
stores and start selling on Taobao.
Taobao leverages Alibaba’s Infrastructure: Transaction on Taobo are facilitated by Alipay’s payment
ecosystem, enabling merchants infrastructure and Cainiao Network’s logistics and fulfillment capabilities.
to sell through social commerce
with technologies such as AI. Consumer protection against counterfeits: Consistent with Alibaba’s long-
term strategy to rid its platforms of counterfeits, Taobao leverages big data
technology to detect counterfeit products. Alibaba has joined forces with
Chinese law enforcement authorities to arrest and sue Taobao users selling
counterfeits. The escrow function of Alipay lets consumers decide to pay for
items only if they are satisfied with the products.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 6
Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
AI and the big data-driven user experience: Taobao empowers merchants
with artificial intelligence (AI) and big data technology. Big data applications
include the following: Intelligent Merchant Mechanism, Intelligent
Recommendation, Intelligent Personal Assistant and Intelligent Marketing.
Dianxiaomi is an AI customer service chatbot designed to help sellers
automate their customer service and deal with customer requests.
Source: dianxiaomi.com
Retail-tainment, community and content: Taobao leverages Alibaba’s
ecosystem, enabling merchants to sell through social commerce. Some
examples of social commerce opportunities for Taobao sellers include:
Taobao Guang (a platform for female users to share photos and fashion
advice); Taobao Live (a platform for merchants to promote their products
through live broadcasting); and group buying with Ai Taobao and Yitao,
among others. Alibaba’s video portal, Youku, and its own instant-messaging
app AliWangWang, help Taobao sellers increase conversion.
Taobao has a penetration rate
of over 95% in China’s C2C
online retail market.
Source: alimarket.taobao.com
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 7
Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
Empower innovation: Taobao is in itself an ecosystem for innovative and
entrepreneurial merchants. The Taobao Maker Festival is an event that
showcases innovative products and connects entrepreneurs and consumers.
Long-tail effect: Taobao boasts the widest product breadth and depth
among all Chinese C2C marketplaces.
Key Metrics
GMV transacted on Taobao Marketplace in the fiscal year ended March 31,
2017 was ¥2,202 billion, a year-over-year increase of 17%, accounting for
58% of total GMV transacted on all Alibaba’s China retail marketplaces.
Together with Tmall and Juhuasuan, Alibaba’s annual active buyers reached
454 million in the fiscal year ended March 31, 2017.
Peers
Taobao has a penetration rate of over 95% in China’s C2C online retail
market, according to a report by JP Morgan. EachNet and Ymatou, two
competitors, are less popular and both more focused on selling foreign
products.
EachNet, introduced in 2003, is a market leader in online auctions in China.
Source: eachnet.com
Ymatou, established in 2009, is a cross-border e-commerce platform for
B2C and C2C products.
We expect Taobao to continue
its shift to a lifestyle destination
platform.
Source: ymatou.com
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 8
Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
Outlook
Taobao as a lifestyle destination: We expect Taobao to continue its shift
from a traditional online transactions platform to a lifestyle destination
platform consisting of consumer media and a community. China’s C2C e-
commerce market has been shrinking as consumers turn to B2C platforms
for high-quality products. We expect Taobao to remain a central community
where Chinese consumers can engage and transact.
Figure 1. The Changing Composition of China’s Online Retail Market
100%
90%
80%
48% 45%
52%
70% 58%
64%
74%
60% 81%
91% C2C
50%
40% B2C
30%
53% 55%
48%
20% 42%
36%
26%
10% 19%
9%
0%
2009 2010 2011 2012 2013 2014 2015 2016
Source: Analysys
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 9
Copyright © 2017 The Fung Group. All rights reserved.
August 5, 2017
Tmall—B2C Retail E-Commerce
Tmall is China’s largest business-
to-consumer (B2C) platform and
also has Tmall Global, a cross-
border e-commerce platform.
Source: tmall.com
Business Overview
Tmall is China’s largest business-to-consumer (B2C) platform connecting
global brands and retailers with Chinese consumers. Tmall offers a platform
for brands to sell, build their brand image and enhance the consumer
experience. It was established in 2010 and now has over 10,000 brands on
its platform.
Revenue model: Tmall charges merchants an annual service fee. As well, for
each transaction, it charges a commission fee based on the category of
product sold.
Strategy and Value Proposition
Help brands understand Chinese consumers: Tmall’s tech-enabled tools
help brands understand and effectively tap China’s fast-growing and
increasingly diverse consumer base. Between 2016 and 2021, China’s
consumption is forecast to increase by US$1.8 trillion to reach US$6.1
trillion, according to BCG.
Consumer engagement through innovative technologies: Alibaba helps
brands engage with consumers through technologies such as big data,
augmented reality (AR) and virtual reality (VR). During its annual Singles’
Day shopping festival in 2016, Tmall livestreamed a gala event and
introduced the VR Buy+ channel to increase consumers’ connection with
brands. Merchants on Tmall can use the platform’s big data to present
targeted product recommendations and advertising to consumers.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 10
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Superior brand experience through effective marketing: Tmall lets brands
connect directly with consumers by leveraging Alibaba’s media assets. The
B2C platform hosts year-round consumer festivals, such as Singles’ Day,
Tmall helps brands engage with
Double 12 and Tmall Super Brand Day. GMV on Singles’ Day reached ¥120
consumers through technologies billion in 2016.
such as big data, augmented Emphasis on quality: Tmall is well positioned to benefit from China’s
reality (AR) and virtual reality
consumption upgrade and increasing demand for trusted and high-quality
(VR).
goods. Retailers must go through a vetting process to open a store on the
platform and Tmall has zero tolerance for counterfeits. Tmall provides
clearly defined policies for order shipment and returns handling.
The go-to channel for cross-border e-commerce: Tmall Global, Tmall’s
cross-border retail platform, houses the flagship stores of international
brands, enabling them to sell to Chinese consumers, regardless of whether
they have a physical presence in the country.
Key Metrics
Some 75% of consumer brands on the Forbes Top 100 most valuable brands
list have a presence on Tmall, as of March 2017. Approximately 200 million
viewers tuned into Tmall’s Singles’ Day in 2016, almost double the 110
million viewers who watched the Super Bowl.
Peers
As an integrated B2C marketplace, Tmall had close to a 58% share of China’s
B2C online retail market in 2016, followed by 26% for JD.com.
In cross-border e-commerce, Tmall Global competes primarily with JD
Worldwide and Amazon.cn.
Source: amazon.cn
Tmall competes with various e-tailers across different verticals. For example,
it competes with VIPShop for discount luxury, Suning and Gome for
electrical appliances and Dangdang for books.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 11
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Figure 2. China B2C E-Commerce Market Share, 2016
Tmall will play a pivotal role in
spearheading Alibaba’s New
10%
Retail initiatives by integrating
3%
online and physical retail 4% Tmall 57.5%
through data technology.
JD.com 26.2%
VIPShop 3.6%
26% 58% Suning 2.5%
Others 10.2%
Source: Analysys
Outlook
A pivotal role in spearheading Alibaba’s New Retail: Tmall will lead the
implementation of Alibaba’s New Retail initiative by integrating online and
physical retail through data technology. We expect New Retail to be
another growth driver for both Tmall and China e-commerce going forward.
Globalization: Alibaba is spearheading the effort to make global trade more
inclusive and to remove barriers and enable small- and medium-sized
enterprises (SME) to sell globally.
Figure 3. China B2C E-Commerce Market Size and Year-over-Year Growth, 2009–2016
3,000 400%
B2C Market Size (RMB billion) 2,738
367%
350%
2,500
Year-over-Year Growth
300%
2,014
2,000
250%
1,500 1,370 200%
171%
150%
1,000 117% 828
108% 100%
464 79%
500 65%
224 47% 50%
103 36%
22
- 0%
2009 2010 2011 2012 2013 2014 2015 2016
Source: Analysys
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 12
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Juhuasuan—A Sales and Marketing Platform for Flash Sales
Juhuasuan uses flash sales and
promotions to help brands
acquire new customers and raise
awareness.
Source: ju.tmall.com
Business Overview
Juhuasuan is a leading daily deals marketplace within Alibaba that serves as
an alternative avenue for Taobao and Tmall merchants to market their
products. Juhuasuan uses flash sales and promotions to acquire new
customers and raise brand awareness. It was established in 2010 and was
integrated with Tmall at the end of 2016, yet operates under its own trade
name.
Revenue model: Juhuasuan charges brands a one-time fee and commission
for product listing, typically 1%–5% of the transaction value. Each product is
displayed and sold for two days. Juhuasuan also charges brands for
advertising services such as placing ads on its homepage.
Strategy and Value Proposition
A marketing platform that helps merchants achieve better results:
Through promotional campaigns, Juhuasuan helps merchants build brand
awareness, launch new products and reach new customers through
promotions. Juhuasuan fits well with Chinese consumers’ preference for
group buying, and has performed well during shopping festivals such as
Chinese New Year, Singles’ Day and Double 12.
Competitive pricing and quality service: Juhuasuan is selective about the
products it onboards, and provides customer service and delivery for users.
It selects products based on their historical sales and service records. The
merchant needs to guarantee a product’s pricing is the lowest for 30 days
before and after the promotion. About 70% of the products offered on
Juhuasuan are new or popular products.
Customer-centric products and service offerings as a competitive
Advantage: Juhuasuan offers a wider range of customized products and
services compared with Tmall and Taobao. In the past, it has offered unique
offerings such as discounted insurance, a football lottery and luxury cruises.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 13
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Share consumer analytics data with merchants: Juhuasuan shares
comprehensive consumer analytics with its merchants, which is valuable for
Going forward, Juhuasuan will
retailers who are building their franchise and developing products for
give priority to overseas brands
that are new to the Chinese Chinese consumers.
market to help them enter and
launch new products in the Metrics
China market. Juhuasuan has 30 million unique visitors daily. Some 900 products and 50
brands are displayed on the site each day, as of March 2016.
The composition of Juhuasuan’s GMV in 2016 was: fashion and apparel
(32.8%), electronics (21.9%), groceries (18.6%), branded items (11.6%) and
others (15.1%).
Source: jusp.tmall.com
Outlook
Strategic importance of marketing in the New Retail era: Juhuasuan is
expected to play a significant role in helping merchants to transition to e-
commerce. It was integrated with Tmall in an internal reorganization in
December 2016, which will make selling and marketing on Tmall seamless—
brands will launch new products through Tmall and launch marketing
campaigns through Juhuasuan.
Further expand into cross-border e-commerce: Juhuasuan’s priority is to be
the most effective channel for international brands to enter and launch new
products on the Chinese market. Juhuasuan will give priority to overseas
brands that are new to the Chinese market. With the inclusion of overseas
brands, it will help to expand the breadth and depth of its product offerings.
Peers
Juhuasuan’s peer group consists of C2B social commerce platforms such as
Pingduoduo, Juanpi and Jumei.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 14
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
1688.com—China’s Online B2B Wholesale Marketplace
Source: 1688.com
Business Overview
1688.com is an integrated B2B platform that connects local buyers and
sellers for trade of general merchandise, raw materials, and industrial and
1688.com is an integrated B2B chemical products, among others. Launched in 1999, it is a pioneer in
platform that connects local China’s wholesale B2B market.
buyers and sellers for trade of
various merchandise and raw Revenue model: 1688.com charges an annual membership fee as well as
materials. fees for value-added services (such as promotional and advertising fees, and
order matching fees).
Source: cxt.1688.com
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 15
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Strategy and Value Proposition
Effective online sourcing channel for merchants: 1688.com serves the
upstream value chain, which includes retailers and merchants on Taobao.
1688.com is China’s largest B2B
The key characteristics of 1688.com are attractive prices and higher
source platform, given its first-
mover advantage.
transaction volume. It is common for buyers to buy the same product at a
fraction of the price when purchasing in bulk from 1688.com.
Value-added membership services for suppliers: 1688.com provides
membership services such as exhibition spots at conferences, advertising,
data analytics and other functions through China TrustPass. It also provides
advertising services such as pay-for-performance (P4P) marketing and
keywords auctions.
Source: cxt.1688.com
Community: 1688.com provides an online community for merchants and
suppliers to share advice and field queries. It is China’s largest B2B sourcing
platform, given its first-mover advantage.
Metrics
1688.com had over 961,000 paying members as of March 31, 2017, and 230
million suppliers, as of March 31, 2016.
Approximately 60% of its orders are from businesses outside Alibaba’s e-
commerce platforms such as Taobao and Juhuasuan.
Peers
Peers of 1688.com’s B2B e-commerce platform include HC360, makepolo,
Global Sources and DHGate.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 16
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Source: hc360.com
Outlook
Continued digitalization: 1688.com will continue to drive more value
Alibaba accounts for 48% of creation for SMEs through digitalization. 1688.com aims to become China’s
China’s B2B e-commerce most-efficient SME trading platform within three years, and China’s No.1
market. SME trade data-sharing platform within five years.
Figure 4. China’s B2B E-Commerce Market, 2016
Alibaba
36%
Global Resource
48% JQW
DHGate
Others
5%
5%
6%
Source: iResearch
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 17
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
AliExpress—Global B2C Online Marketplace
Source: aliexpress.com
Business Overview
AliExpress is an international B2C marketplace for overseas consumers to
buy directly from manufacturers and distributors in China. It was launched
AliExpress is an international in 2010 and is the third-largest English online shopping website globally,
B2C marketplace for overseas covering over 200 countries and operating in 16 local languages.
consumers to buy directly from
manufacturers in China. Revenue model: Registration is free. AliExpress charges merchants an
annual fee and a 5% commission for each transaction.
Strategy and Value Proposition
Expedited delivery supported by a data intelligent network: Orders placed
on AliExpress are delivered by Cainiao’s cross-border fulfilment and delivery
network. Cainiao’s open data technology platform is supported by
automation, smart devices and AI, and has led to increased efficiency. For
example, delivery time in Russia saw a 20% improvement in fiscal year 2017.
Tech-enabled tools for effective selling: AliExpress has a suite of apps for
payment, translation and communication to help Chinese merchants
interact with overseas customers more effectively.
Retail with entertainment: AliExpress has integrated entertainment
elements into the platform to enhance consumers’ shopping experience
and their interaction with brands. Consumers can tune into AliExpress LIVE
to interact with cewebrities and brands who livestream their content.
Livestreaming is also used during shopping festivals for brands to engage
with consumers.
Key Metrics
AliExpress had more than 100 million overseas buyers from 220 countries
and regions, as of April 2017.
On Singles’ Day 2016, AliExpress handled 35.8 million orders, a year-over-
year increase of 68%, covering 230 countries and regions.
The top-five markets by transaction value for AliExpress are: Russia, the US,
Spain, Brazil, France and the UK. AliExpress is one of the most popular cross-
border e-commerce marketplaces in Russia.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 18
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
The top-five product categories by transaction value are: fashion and
accessories, phones, cosmetics and health, computers, jewelry and watches.
Peers
Peers include Amazon and eBay.
AliExpress will play a primary
role in supporting the group’s Amazon is the largest online retail marketplace in the US by total sales. It
overseas expansion efforts. has sellers from more than 130 countries and customers in 185 countries.
Source: amazon.com
eBay is an online C2C and B2C platform that operates in approximately 30
countries.
Source: ebay.com
Outlook
Strengthen brand building and globalization efforts: The future strategy of
AliExpress is to serve more customers globally to align itself with the
mission of Alibaba. AliExpress aims to further support Chinese merchants’
expansion efforts overseas in areas including marketing, brand-building,
logistics, financial and value-added services.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 19
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Alibaba.com—Global Online Wholesale Marketplace
Source: alibaba.com
Business Overview
Alibaba.com is China’s largest global online wholesale marketplace and is
the international version of 1688.com. Alibaba.com, which is in English,
Alibaba.com is China’s largest
serves buyers from over 200 countries by connecting them with suppliers in
global online wholesale
marketplace and helps domestic China. Combined, 1688.com and Alibaba.com are the biggest domestic and
suppliers enter the international international B2B wholesale marketplaces globally.
market. Revenue model: Alibaba.com does not charge a commission. It generates
revenue from membership fees, marketing services and value-added
services.
Strategy and Value Proposition
An effective channel for domestic suppliers to export to the rest of the
world: Alibaba.com helps domestic suppliers enter the international market
through product listings, promotional campaigns and order matching.
Digitizing global trade: Through solutions and partnerships, One Touch, an
affiliated import and export service, provides import/export business
solutions such as custom clearance, value-added tax (VAT) refunds and
other value-added services. Alibaba.com has partnerships with domestic
third-party logistics providers and international players such as UPS, Fedex,
Maersk, DHL and Kuehne + Nagel to boost cross-border logistics operations.
Source: home.kuehne-nagel.com
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 20
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Quality assurance for global buyers: Alibaba.com launched the Trade
Assurance Program in order to create trust and attract overseas buyers.
Alibaba.com provides value- Buyers are eligible for refunds related to quality issues. Alibaba OneTouch
added services such as quality vets suppliers that wish to participate.
assurance for global buyers,
trade financing to small Financing support enabled by data technology: “e-Credit Line” provides
businesses buying on its trade financing to small businesses buying and selling on Alibaba.com. The
platform. credit financing decision is powered by an automated credit scoring system
that is able to grant full approval within 24 hours.
Peers
Alibaba.com is the largest B2B marketplace globally in terms of GMV. It has
18 million buyers, followed by ThomasNet in the US (1.8 million buyers),
TradeIndia in India (1.6 million buyers) and EC21 in South Korea (1 million
buyers).
Source: thomasnet.com
Metrics
As of March 31, 2017, Alibaba.com has over 141,000 paying members.
Outlook
Globalization: Alibaba.com will play a
pivotal role in supporting the
Electronic World Trade Platform
(eWTP) initiative promulgated by
Chairman Jack Ma. The vision of
eWTP is to lower trade barriers for
SMEs and make global trade
frictionless.
Source: alibabagroup.com
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 21
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Lazada—South-East Asia Based E-Commerce Platform
Source: lazada.com.my
Business Overview
Lazada is an e-commerce Lazada is an e-commerce platform focused on South-East Asia, with
platform focused on South-East operations in Singapore, Indonesia, Malaysia, the Philippines, Thailand and
Asia that is currently 83% owned
Vietnam. It operates a marketplace model that allows third-party retailers
by Alibaba.
to sell their products on the Lazada platform (since 2013) and also sells
inventory directly to customers from its own warehouses.
Lazada was launched by Rocket Internet in 2012 and is currently 83%
owned by Alibaba.
Revenue model: Lazada derives revenues primarily from commissions. It
charges a 2% payment fee and a commission on products sold on its
marketplace that ranges from 0.5% to 12%. Other revenue streams include
advertising.
Strategy and Value Proposition
An e-commerce leader in South-East Asia: Lazada gives Alibaba exposure to
the rapidly-growing South-East Asia e-commerce market, without having to
build a site from the ground up. Online shopping accounts for less than 5%
of the region’s retail sales currently, and this share is expected to increase.
B2C online retail sales are estimated to increase at a compound annual
growth rate of 17.1% to US$25 billion in 2020 from US$11 billion in 2015,
according to Frost and Sullivan.
Synergies between Lazada and Alibaba’s ecosystem: The cooperation
between Alibaba and Lazada has been mutually beneficial, helping both
players to tap into an expanded customer base, broadening their product
range and capabilities. Lazada has onboarded Tmall brands to its
marketplace and enabled its merchants to sell through Taobao, increasing
the choice of both consumers and merchants. Lazada’s logistics capabilities
are strengthened, as it can now tap into Cainiao Network for logistics
services.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 22
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Key Metrics
Lazada’s GMV for the Double 12 shopping festival in 2016 was US$40.5
million.
Lazada is the largest in South-
East Asia’s fragmented e-
commerce market. Peers
Lazada is the dominant e-commerce player in South-East Asia. Other local
players include Tokopedia, an Indonesian online C2C marketplace launched
in 2009, and Shopee, a Tencent-backed platform based in Singapore. Other
global marketplaces are also interested in entering the market. JD.com
announced plans to expand to Thailand before the end of 2017. Amazon
has also been reported to be planning to enter South-East Asia.
Source: tokopedia.com
Source: shopee.sg
Outlook
Global expansion strategy: Alibaba’s strategy is to transform Lazada into a
global marketplace from a South-East Asia marketplace. Lazada is also
focusing on adding smaller merchants to its online marketplace. This is part
of Alibaba’s long-term vision to reach GMV of US$1 trillion by 2020 and to
increase its revenue contribution from outside of China to 50%
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 23
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Digital
Media and
Entertain
ment
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 24
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Alibaba Pictures—Digital Media and Entertainment
Source: alibabapictures.com
Business Overview
Alibaba Pictures (Ali Pictures) is the movie production and distribution arm
Ali Pictures is the movie of Alibaba. It produces, invests in and distributes movies and TV programs,
production and distribution arm and operates an online ticketing platform in China. Invested in by Alibaba in
that is majority owned by 2014, Ali Pictures is majority owned by Alibaba Group and trades on the
Alibaba and trades as 1060 HK. Hong Kong Stock Exchange under the ticker 1060 HK.
The four main areas of operation are: 1) movie studio, content creation and
production; 2) Internet-based marketing and distribution; 3) entertainment
e-commerce; and 4) international.
Revenue model: Ali Pictures generates revenue from commissions and
service fees charged on marketing and ticketing for third-party films (75% of
its revenue in 2016), box office income from its proprietary film productions
(23% of revenue) and others (2% of revenue).
Strategy and Value Proposition
Full coverage of the film industry value chain: The operations of Ali
Pictures span the entire film industry value chain, from financing and
production of films to marketing, distribution and ticketing.
Platform-oriented approach: Ali Pictures aims to create an integrated O2O
platform for the entertainment industry by connecting the offline cinema
circuit and online distribution. Ali Pictures has a strategic cooperation
agreement with Alibaba for three years to pool resources to co-develop
content.
The cooperation lets it leverage the assets of the Alibaba ecosystem:
• Alibaba will grant exclusive rights of work from Alibaba Literature,
Alibaba Gaming and Youku to Ali Pictures.
• Alibaba’s media assets such as the video streaming site Youku Tudou,
OTT (subscription content business) Tmall Box Office and Taobao
online ticketing Tao Piaopiao can help make content distribution more
effective.
• Alipay can make payment for content more streamlined.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 25
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
International presence: Ali Pictures aims to produce content for a global
audience. It invested in Amblin Partners to co-produce and distribute
movies, and has partnerships with Hollywood studios such as Paramount
Pictures and Skydance Media. Ali Pictures is also committed to developing
its business in India and has been connected to several investments there.
Digital marketing and data analytics: Consumer data and insights
generated from the Alibaba ecosystem will support targeted marketing
Ali Pictures aims to produce efforts for Ali Pictures. Furthermore, Alibaba also invested in film data
content for a global audience, analytics and content distribution platforms to increase user engagement
having invested and partnered and market share.
with overseas studios.
Focus on IP and made-for-Internet content: Ali Pictures will focus on
Internet dramas as the key growth area, given the rapid growth of online
video streaming, which will become an important channel for content
distribution. It has been investing in a platform to provide online movie
content creators with open IPs and resources. Ali Pictures also operates
Yulebao, a C2B film production platform, to provide resources for financing,
licensing and marketing.
Source: taobao.com
Key Metrics
Ali Pictures’ online ticket platform Tao Piaopiao had over 25 million MAU, as
of June 2016, and the daily maximum number of tickets sold reached 3
million.
Source: dianying.taobao.com
Its software solution YKSE has over 1,000 theatre clients, among which, 60%
have annual box office revenues of over ¥10 million.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 26
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Peers
Ali Pictures’ peers include China’s largest film companies, such as AMC
Entertainment, Huayi Brothers, Tencent Pictures and cinema operator
Wanda Cinema Line.
Ali Pictures has been expanding
its film ecosystem through
acquisitions which we believe
will meaningfully increase its
competitiveness.
Source: huayibrothersent.com
Outlook
Strive for sustainable profitability: Ali Pictures will seek a sustainable profit
model and high-quality productions to drive further growth. China’s box
office revenue in 2016 was ¥46 billion, the second-largest movie market
after the US, and is estimated to reach ¥86 billion in 2018, according to
iResearch. However, Chinese box office growth has been decelerating
following the jump in box-office revenues in 2014 and 2015, which was
attributable to lower-priced tickets on online platforms.
Invest for growth: Ali Pictures has been expanding its film ecosystem
through acquisitions in film and TV production, distribution and ticketing,
which we believe will increase its competitiveness. The company has an
investment fund aimed at building assets across the film-production chain.
Recent investments include the Dadi cinema chain to strengthen
distribution; producer and distributor Bona Film Group; film financing group
Hehe Film; Amblin Partners; and digital marketing platform Damai.
Film co-productions with overseas studios: Ali Pictures is expected to lead
co-production with Hollywood and investments in foreign films, following
its strategic partnership on co-production with Steven Spielberg’s Amblin
Partners.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 27
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Xiami—Music-Streaming Platform
Source: xiami.com
Business Overview
Xiami is a music-streaming
Xiami is a music-streaming platform under Alibaba’s music division. It was
platform owned by Alibaba. founded in 2006, acquired by Alibaba in 2013 and integrated with Tiantian
to form the Alibaba Music Division in 2015.
Revenue model: Xiami earns fees from advertising and paid subscriptions
for its music-streaming services, similar to Spotify.
Strategy and Value Proposition
Global strategic partnerships: Xiami, part of Alibaba’s music division, has
international and domestic licensing partners, including Universal, BMG and
K-Pop record label SM Entertainment.
Use of technology to foster community: The Xiami platform provides
support to independent Chinese musicians and helps them get discovered.
Platform approach: Xiami is able to leverage Alibaba’s assets, which cover
marketing and advertising, payments, e-commerce, etc.
Peers
Peers are major music-streaming platforms in China, which include NetEase
Cloud Music, QQ Music, Sogou Music, Kugou Music, Kuwo Music, Baidu
Music, Yinyue Tai, etc.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 28
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Source: mp3.sogou.com
Metrics
Xiami Music has over 14 million Xiami Music has over 14 million MAU, as of September 2016, according to
MAU. QuestMobile. The Xiami Music mobile app has been installed on 9 million
devices, as of December 2016.
Outlook
Structural growth story: China’s music-streaming industry is forecast to
grow rapidly through to 2020, according to Analysys. The structural growth
trend is primarily driven by consumers’ increasing willingness to pay for
high-quality audio content, rising income levels and widespread access to
cloud storage and 4G/5G networks.
Policy support: Xiami will continue to benefit from the Chinese
government’s cultural development strategy to support multimedia
content.
License infringement remains a risk for music-streaming platforms in China.
Xiami’s services were suspended briefly in 2015, as it was embroiled in
music copyright disputes with regulators. Xiami has proactively mitigated
the risk by obtaining legal rights for music catalogs.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 29
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Alibaba Sports—B2B Sports and E-Sports Platform
Source: alisports.com
Business Overview
Established in 2015, Alibaba Sports (Alisports) develops and operates sports
Alisports develops and operates IP, sporting events, e-sports contests, sporting venues, sports merchandise
sports IP, sporting events, e- and acquisitions of selected media rights.
sports contests, sporting venues,
sports merchandise and Revenue model: Alisports is currently focused on scaling up and expanding
acquisitions of selected media the reach of its infrastructure. Based on its business nature and vision, we
rights. expect it to derive revenue in the future from commissions from Alisports’
online platform and advertising income from sporting events.
Strategy and Value Proposition
Digitalize and create a platform for China’s sports economy: Alisports’
vision is to digitalize the traditional sports industry by leveraging Alibaba’s
digital assets and user data. Alisports will integrate the group’s assets in e-
commerce, media, marketing, video, entertainment, cloud computing and
AI, with event management, IP, business development, ticketing, etc., of the
traditional sporting industry.
Develop IP for foreign and homegrown sporting content: Alisports
develops and acquires Chinese and international sports IP, which we view as
a key competitive strength. Alibaba purchased exclusive broadcasting rights,
after the end of national sports channel CCTV5’s rights to sports event
transmission and broadcasts in 2014.
Strategic partnerships for major sports tournaments: Alisports has
partnerships with major international sports associations—including the
International Boxing Association (AIBA), World Rugby, IeSF (International e-
Sports Federation)—to promote and host events in China, as well as
broadcasting rights for the FIFA World Cup, NFL Games, Olympic Games and
LPGA.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 30
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Peers
Peers include Wanda Sports and Tencent Sports. Wanda Sports is one of the
E-sports will be a main growth
driver for Alisports.
world’s largest sports companies following a series of acquisitions.
Source: sports.qq.com
Metrics
Alisports streamed the 2016 Rio Olympics via Youku, Alibaba’s video
streaming portal, under a licensing agreement with Chinese state-owned
CCTV. As many as 380 million viewers streamed the Olympic Games through
Alisports.
Outlook
Beneficiary of policy support: China’s State Council set a target that, by
2025, the sports industry will have an output value of ¥5 trillion. Alisports
aims to both provide an online platform for the traditional sports industry
and to digitalize and upgrade the industry.
E-sports as a major growth driver: Alisports launched the World Electronic
Sports Games (WESG) in March 2016 to facilitate development of e-sports
IP. Alisports aims to expand its offline eStadium (venues for e-sports
tournaments) network to 10,000 in the medium term.
Source: 2017.wesg.com
Sports community platform: Alisports aims to create an online platform
that integrates people, associations, events and sponsors.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 31
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Youku Tudou—Video Content Platform
Source: c.youku.com
Business Overview
Youku Toudu is China’s leading Youku Tudou is the leading operator of video-streaming services in China.
video-streaming services and is The platform enables users to search, view and share video content across
part of Alibaba’s Digital Media & multiple devices. It was formed from the merger of Youku and Tudou in
Entertainment division. 2012, and was subsequently acquired by Alibaba in 2015. The Youku
Business Division is part of Alibaba’s Digital Media & Entertainment arm.
Revenue model: Youku Tudou derives a substantial part of its revenues
from online advertising and paid subscriptions. Youku Tudou also works
with Alibaba’s other assets for content generation and traffic acquisition.
Strategy and Value Proposition
Gathers user analytics for better targeting: Viewers’ data on Youku is
integrated into Alibaba’s e-commerce platform and helps create precise
customer profiles for targeted advertising.
Content creation and partnerships: Youku Tudou has digital content
partnerships with DreamWorks, Universal Pictures, Sony Pictures,
Paramount Pictures and Lionsgate to stream their movies through Tmall Box
Office.
A cornerstone to Alibaba’s e-commerce media ecosystem: Brands can
leverage Youku Tudou for branding and marketing, and to interact with
customers. Youku Tudou has created “webisodes” on Taobao to use
storytelling to boost sales on Taobao and to combine video advertising and
shopping.
Metrics
Youku Tudou has 30 million paying viewers, as of December 2016.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 32
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
Peers
Youku Tudou’s peers are China’s leading online video platforms such as iQiYi,
Sohu, Mango TV and Tencent Video.
Source: iqiyi.com
Outlook
Platform strategy: Youku Tudou will play a key role in Alibaba’s strategy of
Alibaba’s goal is to reach 2 building an “e-commerce media ecosystem”, which aims to connect e-
billion consumers with its commerce platforms with media and let brands reach consumers through
services by 2036, by continuing digital channels. Youku Tudou will become the “lifestyle channel” for
to expand beyond e-commerce Alibaba’s e-commerce platforms, together with Sina Weibo and mobile
into entertainment, media and
browser provider UCWeb.
sports.
Content generation: Youku Tudou will distribute and generate content to
help make Alibaba a leading digital content provider in China. Alibaba’s goal
is to reach 2 billion consumers with its services by 2036, by continuing to
expand beyond e-commerce into entertainment, media and sports. Alibaba
is a sponsor of the Olympic Games through to 2028, and the games are
expected to be streamed on Youku Tudou. Youku Tudou has existing
partnerships on content generation which it can leverage.
Online distribution channel for Alibaba’s media and entertainment: Youku
Tudou is a key distribution channel for Alibaba’s media and entertainment
unit. China’s online paid video market was valued at ¥9.6 billion in 2016, an
increase of 90.8% year over year. According to a survey in 2016, 82% of
Chinese prefer to watch new films on online video platforms, more than the
66% who prefer to go to cinemas.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 33
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
UC Web—Mobile Internet Services
Source: uc.cn
Business Overview
UC Web operates UC Browser, one of the most popular mobile browsers
UC Web, which operates UC globally. Similar to Google Chrome and Apple Safari, UC Web has both
Browser, was acquired by mobile and PC versions. UC Web was founded in 2004, and acquired by
Alibaba in 2014.
Alibaba in 2014, as part of the “cloud + terminal” business strategy.
UC Browser has transformed into a leading content distribution platform
from its origins as a mobile browser. Its portfolio includes UC Browser
(mobile browsing service), UC News (content distributor), 9Apps (Android
app store) and UC Union (mobile traffic and monetization platform).
Revenue model: The primary revenue sources are from advertisements and
partnerships with network operators to track analytics.
Strategy and Value Proposition
Localization strategy: UC Web has a localization strategy. It has a large user
base in China, and controls more than half of the Indian and Indonesian
markets. The browser supports 12 languages in order to serve its growing
international user base. 9Apps, its mobile app distribution platform, was set
up in 2013 and allows Android users globally to download apps.
Ecosystem partnerships: UC Web has partnerships with and provides
distribution channels for companies such as Vodafone. It takes advantage of
its own server networks to deliver targeted advertising and content to
users.
Pairing content distribution with sophisticated data analytics: UC Web is
evolving into a more intelligent platform that integrates user data analytics
and multimedia content. It analyzes users’ location, age group, gender and
interests to provide targeted content.
Content creation and a connector to the Alibaba media ecosystem: UC
Browser connects users to the Alibaba media ecosystem of e-commerce,
music and video streaming, and social networks. UC Web has content
partnerships with online media portals such as Sina to extend its reach to
more consumers. Media portals and publishers can create “content stores”
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 34
Copyright © 2017 The Fung Group. All rights reserved.August 5, 2017
on UC Browser to house their content. UC operates We-Media, an open
platform which allows international users to publish and post content. UC
also established the ¥1 billion W+ fund to reward contributors in China.
Key Metrics
UC Browser has over 252 million MAUs globally, as of September 2016
according to Quest Mobile. It is the largest mobile browser in India, with a
57% market share and over 100 million MAUs in 2016. 83% of its users are
below the age of 35, and over 60% live in top-tier cities.
Peers
UC Browser’s domestic peers (mobile) include QQ browser, Baidu, 360 and
Sogou.
UC Web is focused on overseas
expansion with investment in
India and Indonesia.
Source: mb.qq.com
Globally, UC Browser (desktop) is ranked third with an 8% market share,
behind Chrome (52%) and Safari (15%), according to Stat Counter.
Outlook
Further ramp up digital content generation: UC Web will be stepping up its
content-generation efforts by partnering with more media outlets, in
addition to paying users who contribute content. With the use of big data
and AI, UC Web will help improve distribution of targeted content.
Overseas expansion strategy: UC Web aims to make UC We-Media the go-
to platform for content consumption and creation in India and Indonesia.
UC Web has set up an investment fund of Rs200 crore (over US$30 million)
to strengthen user-generated content (UGC) in India and Indonesia, and
news distribution through UC News. In 2017, it plans to add more than
30,000 self-publishers and bloggers to its platform, and pursue more tie-ups
with Indian entertainment channels and movie makers for exclusive content
releases.
Further investments in technology and platforms: UC Web is looking at
investments in upstream and downstream areas in content generation and
distribution in India, including those engaged in local-language content.
Deborah Weinswig, Managing Director, FGRT
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 35
Copyright © 2017 The Fung Group. All rights reserved.You can also read
