Buying And Selling Alibaba In Overseas Markets

This year

The news of mergers and acquisitions is endless, especially after its gorgeous IPO.

270 billion of the market value is in the pocket, and every investment and strategic cooperation is more than ten million.

What do we see in the overseas market? First, docking the huge domestic consumer market with the rich international commodity and cultural resources, and the return on investment is relatively clear, and proceeds directly.

The two is to pfer the electronic business platform from the PC side to the mobile terminal, but the return on investment is not clear in the short term, which has caused some financial burden to the operation.

More

The introduction of China has become one of the strategic objectives of Ali in the next ten years.

In an interview with the Wall Street journal in November 2nd, Ma Yun said, "selling China's products to other countries in the world is what we have done in the past 10-15 years. In the next 10 years, China's domestic demand is so huge that there should be more imports."

Ali is familiar with the field of electricity, it seems to be clearly targeted and handy.

1Stdibs, a luxury e-commerce platform in the vertical field, is mainly targeted at high consumption groups; the new electricity supplier 11Main sells main products of the United States; ShopRunner is the dominant mode of logistics; the various contacts in Hollywood are aimed at the cultural entertainment products of the United States.

Through these investments, Ali not only integrated the users of these companies, but also extended the industrial chain of their own platforms, so that overseas investments could eventually serve Ali's e-commerce platform.

Ali's shopping in the mobile terminal area is aimed at completing the pition from PC terminal to mobile terminal as soon as possible.

Daily Mail's CEO Jon Steinberg says, "at present, the annual growth of PC is reduced from 52% to 8%, and its development has slowed down significantly.

If the development of mobile terminals is not fast enough, it may cause investors' anxiety.

After the third quarter earnings report, Cai Chongxin, executive vice president, said: "mobile terminal is the main goal of Alibaba's next development."

In the third quarter of this year, Alibaba's retail platform from China reached 199 billion 54 million yuan from the mobile terminal, an increase of 263% over the same period last year.

However, Ali's acquisition of mobile terminals seems to be relatively loose.

Not to mention that this year it has acquired Gao de map and UC mobile browser in the country. From the North American market, from the application of Lyft to mobile application search engine Quixey, to the application of TV remote control, it is hard to say how this series of investment reflects the unified strategic direction of Ali in the mobile terminal.

These companies can help Ali's e-commerce platform to guide users, but how long will they take effect after the merger, and the situation in the near future is still uncertain.

These investments have lengthened Ali's frontline in mobile terminals, and have caused a lot of financial burden to its operation.

Alibaba's net profit in the third quarter was $494 million, down 38.6% from the same period last year.

Reuters columnist John Foley analysis, the current operating profit margin in Ali's earnings is the lowest point since its one-time payment of YAHOO options in 2012.

The main reason is a large number of mergers and acquisitions, many of which can not create direct benefits in the short term.

And every acquisition will bring additional integration costs in terms of management communication, corporate culture integration and employee benefits.

Bear the burden of these operations, Ali seems to hope that through the acquisition of Bibi, gradually build their own electricity supplier ecosystem.

Zhang Yong, chief operating officer of Ali, said in an interview with "first finance" reporter that Ali had to compete with the Internet for the next 15 years.

However, what kind of returns can investors bring to the ecosystem at this speed? It may be a lot of people worried about Ali's spree in overseas markets.