How eSourcing Can Help Grow Your Business

Selena YangSenior Manager, Alibaba.com

Open SesamePhiladelphia, PANov. 29th, 2006

Today’s Topics

I. Corporate Overview

II. What are Alibaba “Open Sesame” events?

III. Market Overview

IV. Site Tutorial

V. Useful Tools and Resources

Corporate Overview

Key Information• World’s largest business-to-business

marketplace for global trade, where you can search for business opportunities or post information to attract potential trade partners.

• 2.3 million members (SMEs)• 200+ countries and territories• 32 categories

Daily Web Statistics*• 5 million PVs• 3,000 new members• 550,000 unique visitors• 1300 new companies listed• 3,800+ new products listedwww.alibaba.com

* Company estimate based on average for month of July 2006

Alibaba.com International

Who is Alibaba.com?

• Established in 1999

• Offices locations: Hangzhou, China (HQ), Hong Kong, Europe (Geneva), USA (Silicon Valley), major cities in China

• 2005 Revenue: approx $100mm+

• Y-on-Y Growth: 100%

• # of Employees: 3,000+

•Alibaba is China’s leading e-commerce company, operating the world’s largest online marketplaces for both international and domestic China trade, Taobao.com, China’s largest C2C auction site, Alipay, China’s largest online payment gateway, and Yahoo! China, China’s leading search engine。

•#17 in World•World’s Top-Ranked Import and Export Site•World’s Top International Business and Trade Site

Awards/AccoladesRecipient of Forbes Magazine “Best of the Web” for B2B websites 6 years in a row!

Key Facts

Entrepreneur Magazine: “Top Website for Entrepreneurs”Harvard Business

School

Case Study A & B

What can be found on Alibaba.com?

From raw materials, products to business services

AutomobileChemicalsConstruction & Real EstateElectronic Components & SuppliesEnergyEnvironmentExcess InventoryFurniture & FurnishingsHealth & BeautyHome AppliancesHome SuppliesLights & LightingLuggage, Bags & CasesOffice SuppliesPackaging & PaperPrinting & PublishingSecurity & ProtectionSports & EntertainmentTelecommunicationsTimepieces, Jewelry & EyewearToysTransportation

Business Service9%

Agriculture8%

Electrical Equipment & Supplies

7%

Apparel & Fashion7%

Industrial Supplies6%

Textile & Leather6%

Computer Hardware&Software

6%Food & Beverage5%

Minerals, metals &Materials

5%

Gifts & Crafts4%

Other 22 Categories: 37% Top 10 Categories

Product categories: 32

• Suppliers: 1,195,000

• Buyers: 1,140,000

• Free suppliers• Paid suppliers

• Gold Suppliers: Paid suppliers in mainland China

• TrustPass members: Paid suppliers outside mainland China

Membership

* Company estimate based on month of July 2006

Buyers49%

Suppliers51%

Alibaba.com’s buyer network spans all corners of the world

North America 23%

India8%Africa

9%Europe

18%

Australia3%

China12%

S.E. Asia7%

Other20%

Global buyer distribution

• Search products• Contact SupplierBuyer

Supplier

My Alibaba

Community

• Post products• Reach international buyers

Tools &Resources

• Trade Essentials• Tradeshow Channel • Trade Alert• TradeManager

Alibaba.com

• Online Forum• Open Sesame Events

• Manage Account Information• Check messages • Buying and selling tools

The Alibaba Network

What are Alibaba “Open Sesame” Events?

Alibaba Open Sesame Event in Hangzhou

Topic: How Online Sourcing Can Help Improve Your Business Date: June 23rd, 2006 Location: Hangzhou, China

Icebreaker Games

Alibaba staff mingling with international buyers

Alibaba Open Sesame Event in Milan

Topic: E-sourcing: How the Internet Can Help Your Business Grow Date: July 13th, 2006 Location: Milan, Italy

“Best Travelled” an Alibaba shows her dedication by travelling long and far to join the event

“Charter Member” of Alibaba since 1999

Market Overview

Source: California Management Review

E-Marketplaces: Circa 2000 approach

Match.com Romantic Restaurants

P2P

B2B

Alibaba.com Tradeshows

+

+

=

=

E-Marketplaces: The Alibaba Approach

Traditional Sources of Supplier Information• Referral (colleagues, associates)

• Trade shows

• Industry magazines, trade journals

• Industry associations

• Trade directories

• Existing suppliers

Search/ Discovery Negotiate TransactEvaluate

Average sourcing cycle: 3.3 – 4.2 months

• 52% of time spent searching for/identifying appropriate suppliers

•18% of time spent on RFQ development/ RFQ response

• 20% of time spent on screening/sorting proposals

•10% of time spent on contract negotiations

Source: The Aberdeen Group

Traditional Sourcing Work Flow

Alibaba Tutorial

Alibaba Tutorial

Case study: sourcing MP3 Players

Step 1 - Search & Browse

Find products using Search or Browse Function

Step 2 - Sub-categories

Find products from the sub-categories

Step 3 - Search Results

Refine search results by related search, date & region

Step 3 - Search Results

Refine search results by supplier type

Step 4 - Advanced Search

Use advanced search to find your perfect match

Step 5 – Gold Supplier & Trust Pass

What are “Gold Suppliers” and “Trust Pass”Members?

"Gold Suppliers" are pre-qualified suppliers from China. When you select China (mainland), Taiwan or Hong Kong, this filter will appear in your refined search.

TrustPass members have been authenticated and verified by a third-party credit-reporting agency.

Step 6 - Product & Company InfoReview product and company information

Step 6 – Product & Company Info Review supplier’s TrustPass information

Step 6 – Product & Company Info

Virtual tour of the company

Step 7 - Contact suppliers

Contact suppliers instantly

Step 8 - Inquiry

Fill in the form and send an inquiry to the supplier

Step 8 - Inquiry

Inquiry form preview

Step 9 - TradeManager

Talk to the suppliers in real time

Step 10 - Post Buying LeadsPost a buying lead if you can’tfind the product you want

Step 10 - Post Buying Leads

Preview your buying lead before publishing

Useful Tools and Resources

My Alibaba

Manage your account information, messages and access buying tools here

Trade Alert

Trade Alert delivers the latest buyer andseller information directly to you

TradeManager

TradeManager

Instant messaging tool for trade professionals

TradeManager

Send documents and files without any size limit.

Manage your trade record

Conference in real time

Resources Channel

Your gateway to exploring online resources on Alibaba.com

Trade Forum

Learn and share your trade experiences with other members

Industry Forum In-depth industry specific discussions

Trade Show Channel

Upcoming Featured Trade Shows available in this channel

Articles

Articles on key topics in trade

Country Profiles

Free access to 1,100 pages of information on 82 countries

User Testimonials

Alibaba Member

• DOROTHY PETERSON• Owner

• The Way, event planning services

Selena YangSenior Manager, Intl Marketing & Business Developmentselenayang@alibaba-inc.com

David WangManager, Intl Marketing & Business Developmentdavidwang@alibaba-inc.com

Wendy WongManager, Intl Marketing & Business Developmentwendywong@alibaba-inc.com

Contact Information

Thank You!

Global trade starts here.