little game: Alibaba, Chinese e-commerce giant Are you still okay

It was founded in 1999 by Mr. Jack Ma and 18 other friends. On that day, he had a big dream. Want to create a Chinese technology company It came up and I was successful. Very much in doing e-commerce business, yes Is it so that he has expanded his growth? Strongly not just in business Not only e-commerce, but also investing in logistics, Cloud computing, digital media businesses, including financial businesses. It was separated financially as well. After 15 years, I made the decision. Take the company to raise funds at the stock exchange New York, USA, then use The stock trigger said Baba at that time. Baba was able to raise funds up to 73,000 million baht, which if considering the amount of money during At that time, I must say that it was more than the media or Facebook at that time. It was considered A big fireworks show off for the world to see. Chinese tech companies are coming. Yes, but during my glorious time, It seems like it's not very sustainable because in 2020, it's okay. The Chinese government decided to pay the price. Adjust the total value to more than 100,000 million baht. All at once, on the grounds of accusation, I won't allow it. Stores selling on other platforms must sell on Only our platform, not just It's a story specific to Alibaba alone. that are facing problems, but external factors from Foreign countries also have an impact. Yes, because at that time there was tension. Between the United States and China, it began to arise. Impact on Alibaba's business operations such as Both from the fact that the United States at that time was very bad. I want to blacklist Ali Cloud because I'm afraid there will be a leak. information and it affects cyber security From the US side, besides that, it's still cheap. Please press me to not share my own shares. That's all, but Jack's relationship comes. With the Chinese government, it has reached a point of vulnerability again. times as well because after Jack the dog This is why I have come out to criticize the rules. It was forced by some aspects of the Chinese government, so we did it. Let the Chinese authorities turn to increase strictness. of business increased, followed by discrimination Do not let this business bring in a financial business to raise additional funds. Which must be said that an financial or owner of an online payment application like alipay was at that time. This is an important hope for us. After that, Jack the dog couldn't do it. Appeared in public for many years and did not Yes, it's just the issue of Alibaba himself and the story. of relations with the United States and with the authorities China, but when the covid-19 crisis occurred, of course, consumer behavior began to Changed, other competitors in China's e-commerce industry is also evolving. Changing the strategy to compete for this market is like doing an alib with all the effort. First of All We have to Step Back and look at the Over e-commerce market The penetration Rate is Only 30% So We can go up further We think That there is Room for a Number of players Right Now we have Like four five players there is definitely Room for each of them To To To Do well Within The market Share That they Enjoy for example jd.com is very Good at what we Call One So This Is Like You they Become a wholesaler for their Online retailer they are helping the supp to sell Online So this a onep Player that is Still doing Very Well and is Able To defend itself Alibaba has been you know enjoying The priz So He has a lot of good brands and P which is pdd is More on the Lower End Lower City So They Doing Very Well So each of you Able To defend their defend their capability Very Well is Why even though competition Is is intensifying but each of them Still have their own territory and they are still doing Well, which is one of the strategies they chose to To use it to fix the game during that time is Adopt a strategy called OO or online to Offline, which is the strategy o2o. What I chose to do is to use strength. Power on the online channel. We have already laid out the entire ecosystem of the online world. This is for consumers in the offline world. You can access services and purchases. The product is more convenient than before, so it has become It's a strategy called merging. The experience of spending both online and and offline together Yes, now we are coming to Hemazian. This place is Hui Yuan. Dianhemaziancheng is The supermarket is located here. I already have the heart to play in the offline market. It is to sell products to the hands of consumers. Actually, the word Kui Yuantian is a restaurant. You must be a member only to be able to You can buy it, but it's not difficult to sign up for membership. Now let's see what we have here. What is actually being sold? I have to say that I'm embarrassed to say that I hold it. It is super and quite premium. Imported products as well as fresh products, real people like them. Buying things fresh is fresh to the point of having to be fresh. So they set up an area that's like a stress market like this. His face and his side will say Can be delivered to your home within 30 minutes. The only problem is when someone orders online. There will be an employee walking around, picking it up and putting it in the bag. will be run along the conveyor belt In addition, there are supermarkets that are up to date. At the end of the day in China, we still see opportunities. Business in China's bakery market as well if we look at From the share of the snack market in China Bakery is ranked second at 34%, more popular than popular desserts. Forever like candy and chocolate or even Until now China is home to ice cream. More than 500,000 bakeries and pastry shops by 2022 industry value China's bakeries grew to $3.19.8 billion, with output increasing 6% annually to 19.6 million tonnes and beyond. The bakery industry in China continues to expand. Later, it became one of the markets that Developed with plenty of space left in Further growth is expected. Please note that the bakery industry in China will It could grow to be worth $49 billion by 2025. However, the bakery industry It still faces challenges similar to other segments in the food and beverage market. That is, adapting to The needs of consumers are constantly changing. It's fast and one of the important factors. Chinese consumers today must adjust to have Value for money, good value for money. that has been paid for and must still have good nutrition Health as well, and now I have sent the ship. Become another player in this market such as together, which at present has become a chain The largest bakery network in the country It's already finished, what the heck are you trying to adjust to? I have entered the offline world since the story of Selling fresh seafood is a success. It's finished today. He moved to do the business. Bakery since 2019 and he has adjusted Continuously developed and developed for another part. This industry in China is bakeries. In China, if anyone ever has a chance to try it, they will see. Oh, this is a bread shop where the prices are quite high. One loaf costs 20 baht or something like that. It's a good seller. Suddenly, he saw a gap right here. Said hey, there's a strong salnae with a factory. The production of the middle braid is in Kunshan. Some of it is produced, it is already semi-processed, and after that they will send it to be heat-treated. There are about 350 branches of Merah all over the country right now. This has turned out to be their cost, which is very efficient. They can do it cheaper than others. So you can sell things at a price called Value for money. Can you imagine? Quality products available at very affordable prices. This one is a cheesecake type, which costs around 30 yuan, 100, around 160, 170. That is, if you're outside, you might only get this type. What's half a box of? It's not just snacks like this. They also have Western and Chinese styles because So he's quite diverse. I must say that I have been doing it continuously and it has been successful. It was a quiet success, others in the market might not be able to keep up with it. I even realized it because the time he expanded... Branch expansion will follow the opening of branches. It's like a bakery model to sell as well, so I made it for the part of his hip bakery. Another business that is very worth keeping an eye on and besides Premium supermarkets and Another bakery that we just saw. One business that makes it enter the market What is very interesting offline is the movie theater business. The hotel is called Fly Hotel, and now we are staying at fl Hotel. It is a hotel under our chain, and the concept is Future Hotel. This one is... It will be like the younger sibling who came to welcome us. Being a robot, he says he can. He helped us do many things. P.K.A told him that he was done dancing. Thank you. He really did. Got a lot of things, including things like helping us. What is the receipt box for check-in? Anyway, let's go see what's there. The ice cream maker is here. Yay, I got it now. You can check in below. It's all neat and tidy. I'm about to enter the room. Yes, here he doesn't need to use a card at all. Please use my face to scan into the room to see. You can enter. Oh, this is a room at the Fly Soo Hotel, a member of our group. As soon as you enter, you will see the decoration in the picture. The kind that is a bit of a future or something like that. Then I saw it and there was a younger person who helped me. Nong Tian, I'm really jealous. I'll just say hi to you a little. Mpangkwant candle Come on, just now, Boy, he turned off the lights. It's really annoying. I see that you don't have to walk and press any switches. In a smart way that makes us You can live in this room. It's more comfortable. KEEP shoots Tai Tian, as I told you just now. I want him to turn on the song for me to listen to. Let's tell him to turn off the music first. I'm sorry. Boy, will he turn off the music so we can explore. Our other areas continue, this is one of them. In the feature of the room in the hotel where we can talk with him, it's mainly a service that allows us to stay. in this room comfortably with an assistant Like Nong Thian, in addition to the Jing Ling milk. That's right, there's a smart TV right now. Tina, let's play around and see what services are available. Let us try it out. Really? This one first, this one will be small. Dian Fu Wu would definitely recommend this hotel. Yes, there are food items that we can use. Towels, bedsheets, bedsheets, would like to order The lotion was right there. I took out my phone. This is me. Open alipay. Scan through alipay. Press it and it will bring you to the page. In the one where it's already linked, we're here. Stay in this room and you can order our items. I want it in about 15 minutes. There's a little robot coming to deliver it to us. We'll wait. Let's see how it is. For example, Smart TV has a service that is linked with U-Koo, which is one of the Entertainment. platform under It's our network as well. That is, I acquired it in 2015, and now it is considered one of A platform where we can go watch movies. Series, you can watch various videos quite easily. Quite strong when we come in As a customer at Fly Hotel, we will have the same privileges as being a VIP member, so we will be able to enter. You can see the various movie series that they have here. There's a lot. Just now, there was a sound of a bell ringing. It was Nong. The boss came to deliver the items as we ordered. Let's see how it is. Ah, this thing we ordered has arrived in the room. This number is correct. Anyone can ignore it or press Open. Press OK and they say that the item we ordered has arrived. It's complete. Please help me take it out. When you're done picking it up, please help close the door. And if you're satisfied with your service, don't. I forgot. Please help me review. I picked up the items. Come down first and see that we have completed everything as we have ordered. It said that it closed correctly. 3 will close automatically. Convenient and does not require human intervention. There's no need to have employees running around bringing things to you. We are more efficient now. Convenient for both the hotel and ourselves as well. From Alibaba's ecosystem that consists of 7 business units, there will be a business unit. There is a unit called innovation initiative. In fact, this unit will be Unit for research and development to create growth Next to the company, as in the case of Sai, it comes from Fiy, a platform business. Mr. Khruea's travel service collaborates with Alibaba AI Lab to develop a hotel This RAM has come up and you can see that it can take the Noh in hand and build it further. start a new business by yourself Today, I had the opportunity to talk with Khun Ai Jing, Investment analyst Asian equity abin Investment, at our headquarter to listen to strategies for adjustment. Let's get to the picture of Alibaba's growth after this. This Is The headquarter of Alibaba Right Yes Oh I have heard That They Have a lot of campus but What is this campus for This Is cc campus And this area is for the TE Business Unit The facility is very good Yes Also like and there is Gift Shop here and We can see All the cute moscot yes we can like the After The Meeting We Can Go And Walk and Walk and see Around What kind of the Gift Shop That They Have So After this we go to the Meeting Inside Right. Stop Let's go Let's go. Here they say alid alid. Here they say it's the exact date. It 's a picture of a group wedding of Baba's employees. Jack also came as chairman to open the event. Just keep the picture here. So What is your inv is for them Alibaba So Ali has Been a very Strong e-commerce Player in china but it Also has Fac comp in the for example And I think the company ste is the most Important and Continue will be the most Important platform for domestic or international business. And if you ask, at present, does Alibaba have income from the group? For any business, it must be said that the proportion of income It is separated like this from e-commerce in China 43%, e-commerce abroad 11% Cloud 10% Logistics 10% Platform Services in China 6% Digital Media and Entertainment 2 and others 18% and what we have Seen for this Company is that they are targeting to Grow their gmb again and We Have already Seen some very encouraging results from the Past Quarter and We Are expecting their margin improvement to see in a Seal quarters So are There any Like Major concern on the ecommerce Industry right now As You can see It's like in the overall Industry yes we Believe that the discounts are getting deeper for a lot of different companies and That's The Key concern for this Industry which, I must say, in the past I encountered Monsoon challenges both new players and Entering the competition like many Short video platforms that have turned to add channels for Live selling things to both fans and tiktok owners in Thailand as well as for showing off. This is also the purchasing behavior of Chinese people. It has also changed from what we have seen in the picture. I would say that Chinese people in this era will focus more on buying things that have Value for money, or in other words, they will focus on buying things that have a price. It's not very high, but I focus on quality. It must be worth the price and again, there are serious competitors. That uses all sorts of tricks from the buying group that allows consumers to come together to buy things to get Cheaper than before and still own it. A platform that focuses on selling cheap products from manufacturers. directly came to compete for market share in purchasing Online stuff is good enough. We should all know that this is the first e-commerce in the Chinese market, right? Now he has lost market share to New players are just starting out and growing. I hear it, and that is the main reason why many Last year, the stock price was not as good as possible. As investors expect, however Things have change the Share gain by the new players have been stabilizing as they Are Not gaining Anymore Like Before there is Li how can take market Share from Alibaba has stabilizing terms of the Share L by Alibaba and Alibaba has Also been using some measures restructuring as well to make it More reactive to consumer demands So The consumer User experience has improv with Alibaba that helps you know to stabilize the Market SH Don't for That Alibaba the number one ecommerce Player in china has market Share of 25% with TE And So Still very formidable Player In ecommerce I think The Growth opportunity That have mention you know becoming much Better In terms Of defending The Core Business After The restructuring focusing on ecommerce the most you have her All CH All which is logistic That's All helping thee Business To Do well and and one thing That Has Changed as well is that since the regulatory Crack Down If you like to put It That Way Back 2021 companies Like tensen Alibaba have Become a lot More disciplined In terms Of Where they want to invest they Just Don't Want To invest in Everything Right they Want To Go Back and Focus on Are of expertise Finally, it looks like it's starting to adjust. By returning to focus on growth at Acom again. This is the strategy time within the country itself, I know. Then I will have to focus more on Value for money in the international market. Then we will focus on strategies that will answer each problem. Markets that have entered more and more, such as Lazada in our country right now, also provide It's important to add Machi to the business group. This is what must be considered as still being there. Business groups with high growth opportunities are in There are a number of ports, one of which is It 's the Cloud business that is growing evenly. parallel to the digital economy including business Financial technology or fintech such as ipay as well. Today we had the opportunity to observe Khun Chu, Investment Manager Asian equity from aladin Investment, attend the meeting to request information on Invest more with Alibaba and another main business that many people may not know yet. that this is an important part of Alibaba's long-term growth is the Cloud business, which aloud is considered to be the largest Cloud service provider in China and has state-of-the-art technology Take it as an important part in development. China's digital economy in the recent past and It's going to play an increasingly important role in the future. If you look at the Amazon The Cloud Business Is Like 50% of amazon's valuation ally Cloud you know remains at a very Early Stage of adoption in china Ali Cloud is Only getting Around 8% operating margin, so it's no surprise that many people Please overlook this business because Aloud is still in the early stages of expansion. in China and al Cloud's services can still go a long way because Therefore, if compared, they say that al Cloud still has growth. and can still create value for the company Alibaba is that They Have done Well In terms of The earnings Meeting expectation I know It's Still not growing like you know Like what it Used To Be But It's No longer declining Right It is stabilizing So I Think The worst In terms Of The Share Price Performance is Behind US apart from the Growth opportunity that i mentioned It is Still very Cheap and one Important Technical Factor that i want to mention is that L in Hong Kong from secondary to Primary So Main Chinese can buy I think We Have Seen a lot of the chinese coming down to buy not physically coming down but Money coming down Through The Stock Exchange Dubai The Alibaba So Yeah all in All I think there is valuation and there is Growth So We Are Not We Are We Are actually constructive On Alibaba long term but Coming Back to our portfolio We Are seeing around 16 to 17% earnings Grow despite The Economic slow not Just Alibaba It is Also many other companies giving you 5% dividend you even the chinese banks That May be facing More Economic challenges they Still giving you 67% dividend you but Coming Back Again you know what People Are Not just putting the Cash Under the pillow they are still spending you know If they not spending on housing they spending on other Things like for example they spending On Travel So there is definitely opportunities in terms of consumption you know There are still Bright spots That investors Should not Just be Reading The papers and forget about China From the fact that we have gone deep into China's Inside throughout the 6 episodes of this series, we believe that China's consumption picture has been reflected. To see the questions that many people are having with The Chinese economy is doing reasonably well, actually. If we look carefully, we might see that China today This may not be as segregating as many people think. People only think that what we see is the way of things. China's economic growth is changing. Go and if anyone is interested in investing in Chinese stocks, Adin also has 3 interesting funds to recommend. The abidin All China sustainable equity fund or AB CG offers sustainable investment opportunities in top Chinese stocks. Leading the world to focus on investing in large Chinese stocks and Central to all markets, both those registered in China and those listed Registered in foreign countries around the world 2 open funds abin China aare sustainable equity fund or abca invest differently sustainably Stand on Chinese stocks registered in mainland China. 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