At Alibaba‘s Investor Day held on December 17, Toby Xu, Deputy Chief Financial Officer of Alibaba Group, shared seven key investment themes under the firm’s two major investment directions in the future. In terms of creating value for existing businesses, Alibaba will focus on mass consumption, enterprise services, high technology and globalization. In grasping future opportunities, Alibaba will focus on the green economy, silver economy and rural revitalization.
Alibaba‘s latest financial report showed that in the 12 months ended September 30, Alibaba‘s global active consumers reached 1.24 billion. Over the years, Alibaba has formed a complete and rich mobile app matrix to meet the needs of different consumers.
In the face of diversified business portfolios, Alibaba has always maintained a disciplined investment approach. Toby Xu introduced that in its consumer business, Alibaba follows the framework of “three stages of growth,” that is, “sowing stage,” “growth stage” and “profit stage.” Alibaba will adopt different strategies such as giving priority to transforming users’ mindsets, increasing market share and realizing profit.
This investment strategy helps Alibaba‘s domestic consumer market business show healthy and sustainable growth, with Taobao focused on improving the consumer experience and maintaining a leading position in the market, while new businesses such as Taote and Taocaicai are working to achieve strong user and order growth.
In the 12 months ended September 30, the annual active consumers of Taote and Taocaicai reached 270 million, an increase of 200% year-on-year, and the transaction order on these two platforms increased by 400% year-on-year. In addition, Taote’s mobile terminal has attracted 30 million consumers without Taobao accounts.
The firm’s local life services sector forms two business directions to serve consumers: Ele.me and AutoNavi, aiming at consumers’ needs at home and in travel. In the 12 months ended September 30, the annual active consumers of Ele.me increased by 28% year-on-year, and the order volume increased by more than 35% year-on-year. The daily active users of AutoNavi tripled year-on-year, and the average daily orders increased by more than 190% year-on-year.