Jack Ma: $1 Trillion GMV, 2 Billion Customers Still Alibaba's Vision

good afternoon well after almost a two days reports let's talk about something big that's like some are big numbers right I think you get tired of all these a detail today what we'll be doing this because when I talk about the future when I talk about the big numbers everybody's scurrying the company no no no no no no more big numbers but I've been keeping outdoing for 18 years and I think the day you know a sly as I'm alive I'm always talking about the future in the past of five years I try to learn to be a chairman and I think as a chairman of the company I promise that Dan you and Joe that I will focus on three issues first I try to making sure that this company is a vision driven strategy company it's a vision driven company I hate that I'll leave up by IPO and every day we're worried about next quarter the quarter up next and this is no good this is I hate about that I am happy to be on the board join some board many years ago some big multinational companies are joined there and when they make decisions they they hate they worry about make decision for the future everybody only care for next quarter and they buy a company merged company just for next quarter so I hate that so I say the day when we I peeled we have to be making sure that this company is next to 84 years should always be a vision driven company and the second is as a chairman I should making sure the company should have a healthy culture and great people so this is the second a job as a channel I should have and a third before I retire as a chairman I retired the CEO five years ago before we tied the chime of the CEO I try my best to Butte a healthy ecosystem for this company to survive so these are the three jobs I took as the Chairman and I learned how to do that job better and when I talked to the investors I said that Joe was scared and a whole team of financial tips they scared because I say I'm not scared I remember that 18 years ago Joe and I went to Silicon Valley we talked to over 30 venture capitalists we said we want to be one of the top Internet companies in the world and Abby sees all the venture capitalists were scared they also you know forget about it so we did not raise any money the first the trip Joe and I went and the since then I did not write any business plan and then while I was briefed at that time alibaba.com ranking like us a couple hundred million names behind so we want to be number top of ten sites everybody thought it were crazy the second time I remember of 15 years it's like year 2003 when we just a brick even we started compete with eBay Joe and I went to San Francisco no Los Angeles and I talked as many big PS and when I talked about we will move to C to C we will go to the consumer market will compete with eBay the investors at that time were also scared no no no you have no chance to win eBay because C to C market in China has no chance eBay taken already taken 90% of the maquis shirt and three years ago when I when we listed in New York and I say we were raised a little bit money twenty billion dollars people thought it was a joke but now I think we need more money more money for the future and I think compared to the future Alibaba is still a baby if you say in the past to eighteen years we were amazed I think we amazing we were so lucky with the one of the luckiest country company in the world we're in a wonderful industry internet and we are in a wonderful country like China where we gather so many support from our colleagues and great team and all the all the things that we're lucky but this company would love will the vision is to last 102 years so we have another 84 years to go and people say well 102 years is a great number but we take it really seriously ask me founder and chairman I really take this thing very seriously so every plan every year on the strategy meeting will review what we're going to do next ten years what the ten years any with every project every big investment we do we think about 10 years later we think about five years later so we have a three year plan five year plan and ten years plan almost every year we review so without that if you only if you talk about honor it's 102 years but never care about five year plan or ten year plan you really do not believe what you're talking about and I want to tell all the investors we are very serious about a hundred two year vision that we have another eighty four years ago so compared to the future you know our saw our market cap of course I think I'm happy about that but don't compare to the others if you're compared to Amazon I'm not happy about that but if you're compared to the future will skew a small company a very young company at 18 years old we are growing to that size but we still a baby thinking inside so what we want to do in the future we want to be the 21st century a globalised company and I will say the first technology revolution had the business model kata Factory the second technology revolution called there's a business model called company so what will be the data time the internet at time in the 21st century what be the best business model for this century we think about is something called like a platform the business so we are lucky 15 years ago or we start to move our company from a normal like a website to a platform like and I think the other thing is that whether you're a big company a great company not depends on what kind of opportunity you catch most of the companies in China they're always waiting for opportunity if there's a good opportunity to catch it and become a good company when they cannot do when they miss some opportunities they got in china cup of years ago there is a very popular saying that lube on your personal phone call since the suya we're fixing it right if you have pig right even if you if you're lucky happy to be and the ddd you know the other wind some drill you over fly a pig will fly but if the wing goes the pig or dying so i think that it's not about what kind of opportunities you grasp it's about what kind of value you create for the future what kind of problems you solve for the world the big problem you solve the woofer world the big company will be the great problem you solve the world for the world the great company you will be so Alibaba think about one thing that what kind of problems we can solve for the world in next 10 20 years if we are eight we we can figure out the problem in 10 20 years what are the problems then we start to prepare now there will be big so we think we are company in Hangzhou we are not a company in New York and we're not company in Silicon Valley we're not a company in Beijing Shanghai we're company in Hangzhou as a console company the way we compete with the others is that how we judge for the future you know that's the competition we have so we believe the future like this and we spend all the resources going that and we believe this will be the world problem if we can solve that problem will be great that's the way we think about how we lead our future so today ecommerce cloud computing and you know whatever business we have all decided but 10 years ago 15 years ago so people say you're great today's now I think we're not great today we were great 10 years ago 10 years ago we believe this thing what happened 15 years ago we believe this thing will happen 8 years ago we believe cloud computing big data will come so we start to make decisions 18 8 15 and 10 years ago and then we put all the resources all the talents everything just to focus on so I said to many and the entrepreneurs if if there are 9 rabbits on the ground if you want to catch one red rabbit you should not change the rabbit you should change yourself just stick to one rabbit that's the way to do it so we had our vision 10 15 years ago we know this is what we want to go and we'd do anything to change ourselves to be sure that we catch that rabbit so we think globalization anti-globalization anti trade and trade protection is a problem it's going to be a big problem in the future so how we can help global eyes we think globalization is a great thing and how but you know it's only like a 20 30 years in a past 20 30 years globalization helped a lot of developing countries helped a lot of big companies so the in the past 30 years globalization global trade was controlled by 60,000 big companies and which make rich company richer big company bigger and small companies small countries SMEs or in trouble and the young people didn't have chance so we think about if we can make globalization international trade cross-border trade more inclusive making sure every small business has the chance making sure every young people has the chance that we can solve a lot of problems people worry about the job jobs because the new technology come take away a lot of jobs but I but we think if we can make globalization more inclusive then we can create more jobs if it's a small business you can only sell your products to your neighbours your County what if you can sell products cross the ocean across the country to the others that might be a great solution for the job of creation and the great solution for today's problems so that is why within focus we believe that we can do something for globalized trade for globalization we were met helping not 60,000 big companies we can help six minutes Oh sixteen sixty million small business than they can sell and buy across board this is what we want to do and the second thing is that the world economies never be sustainable how can we make our technology to enable the global trade global business to be more sustainable and meanwhile how we can make business people and public people of the next generation happy and healthier so these are the three values three problems that we want to solve the world is not globalization people don't like it but we think we should make it inclusive we should make global business more sustainable where you should make the people in the future a more happy and healthy so these are three problems and these three values ruin a credit so in this way that we definitely want to be a global company that can help globalization so ecommerce will be the best solution and if you want to do e-commerce you definitely have a good technology good people people with good vision five years ago when Alibaba Jimbo and the Talbott emoji envy just across 170 billion US dollars GM V which is one trilling IB I had a crazy idea I say what if we can make one trillion US dollars by the 20-year anniversary of Alibaba that is year 2019 because we were born in 1999 so we said year 2019 today we call year 2000 2020 physical year right we should meet the one trillion US dollars everybody say yes why not but I hate the exchange rate we never put that in the camp so at that time it's like a you know $1 like a 6-iron v but now like $1 close to 7 so we need to have we have like 1/10 and inv gap which is not easy but good I'm happy about that Daniel set target is like target KPI is a KPI let's do it if we can if we do in a normal way we will never meet it so the next is three years our small target is go across one trillion US dollars one trillion US dollars nobody no company in the whole world in the last 100 years to placate imagine any company can do it we have to do in a very innovative way we have to do make it a habit but if we cannot make it happen we'll be in trouble the trouble is that we get a big go that is a year 2036 we will be a company that can serve to binax populations two billion consumers we want to be a company that can create a hundred million jobs for the world we want to be a company that can support 10 million profitable business on the Alibaba platform so what is that if a company can serve to binner consumers that is what one-third of the total population of the world if the company can create a hundred million jobs this is probably bigger than any government of government can do if company can support 10 million profitable business or it's a platform this is called economy today I'll leave about gmae just be calm I mean Giacomo's rice Alibaba GME is a ranking 22nd economy of the world we are just behind Argentina right but I think when we cross one trillion US dollars we are sort of a ranking 17 or 16 but in year 2036 if we can make a 2 billion and 100 million and and and 10 million we will be ranking number 5 economy of the world what does it number five means number one I don't know China or us it's just say USA China Europe maybe Japan and us well people say this is too big it costs nothing to imagine right if you even do not dare to vision it if you do not have think about it so 18 years ago when 18 people in my apartment we all together less than 15 thousand US dollars we start to think that one day will be the top 10 business on a website of the world we will brave at that time today we have 55,000 people we have a lot of money we have a lot of talents technology datas we have a lot of deliverable users or we have a half billion people already in using our services why not think about a big of course we do not own that economy the fifth largest economy we envision we believe if Alibaba cannot do it the other people would do it so if we can work with our people make this this global new economy it's based on internet using this based economy we were helping global by global cell Global pay Global Logistics and global travel today many cities in China you don't need to do anything just a mobile phone you can travel all around the world we believe in couple of years when you have a passport and mobile phone you can travel all around the world and five years later you don't need a passport maybe just a mobile phone or just your face recognizing travel around the world based on your status so this thing could happen you have we have to open our mind and think about it so this is what we want to do that we will globalize the business we will make globalization more inclusive we will make everybody if you have a mobile at that time whether it's a warm-up or not if you have a like a gadget like a mobile phone you can global buy anything you want because we help we're so Tonya see you must have told you that in next 80 years because this girl was put two years ago anywhere in China you want the you are the buy things online within 24 hours you receive it anywhere in the world if you order online you will receive a product within 72 hours I met a girl in Russia a few weeks ago and she said well Aliexpress was great I said why is great she said the speed of the fantastic I think what do mean by fantastic she said only nine days I received my products remember like two years ago it took almost two months and a half for a Russian girl to receive a product from China to Russia throughout express nine days to for them is like a rocket but we will make it happen anyway in the world Patania I told the Tanya the vision one of the vision for Tanya is 24 hours anywhere in China so Beijing faster Shanghai as fast the Guangzhou fast to my standard not does not account Tibet fast Mongolia fast Rin and faster wait so fast that is called the speed so we had to make a network first when that work is investors work the network effect comes speed is good is going to be speed up so I were to say globally will a beautiful adjusting network that within 72 hours anywhere you order so there's no big difference between you order things here from Mongolia your order things from here to Argentina 72 hours that's so we have using technology have to be creative have to be connecting all the logistic and warehouses all the companies bring business to them let them join the network so this is something that we want to do and we want any small business they can go across the board you know today most of the free trade zones of any countries the free trade zone are designed for big companies we are encouraging every government to build their free trade zone for small business the big companies can grow across the custom offices within 24 hours for small business maybe seven weeks so how we can encourage government how we can encourage the policy makers make globalization more inclusive supporting millions and millions of small business can buy nacelle cross the board this is called gwtp not e WT o e WTO is organization very complicated platform is something we can work out and also payment I think Eric has told you about we are building up a network that we were making sure every small business every individual in next 10 20 years the financial should be inclusive and we believe taxing not the FinTech thin tax is a financial institute try to improve their power and type of things is to enable everybody to be able to reach the financing we are technology companies to making sure that everybody is equal everybody should be able to reach the money they want not not those people don't need the money money come don't need the money you never receive it so this is something we want to bring to the world and I've been working very hard shareholders I've been really working hard last year I fly in the air 870 hours on eight hundred seven to six hours and traveling a meeting visiting 40 countries and seeing all the Prime Minister Minister like a diplomat you go a minister I'm happy that enjoying doing that I got a lot of response from those countries and Malaysia as the first country has already started the ewt P the detesting country and we will we will try to make this thing more and more popular and we will try I'm sure that more and more young people women small business government offices will join us so this is something I'm excited about if we really can make the fifth largest economy we need two bitter populations as the tubular population China will probably get 800 minutes something we need 1.2 billion people from outside China this is why we go Southeast Asia one rotor one belt and imagine the other thing which you think about President Xi Jinping announced in Davos meeting next to five years China is going to import a trillion US dollars this one wrote one Belt Conference just have a last amount the China government again say in next to five years China will input 188 US dollars guys what does actually users mean 16 warm up global then China is changing very fast from exporting country to import countries so this eight trillion dollars means a lot to China means a lot to the world of course means a lot to a country a company like Ali Baba because ecommerce probably will be the solution if you go to Guangzhou fair or Las Vegas care to sell a trillion dollars it's impossible so let's think about the other the globalization absolutely we are excited absolutely it's a huge opportunity and to reach go cross one trillion US dollars and next 2-3 years we need a lot of money from from these countries so that's why lazada are expressed I'm going to move very fast the second opportunity I would say is China opportunity China today has more than 300 million middle class their middle class but the spanning capability spending are the you know capabilities is very low so China is going to reach with the today's growth in five to six years we're going to have 500 minutes middle class that means almost close to two American population and this is going to be a huge change for this economy and China today is shifting from investment kaname export economy to domestic consumption so master consumption definitely today ecommerce will take a huge role inside that we think think that consumption upgrading importing is the key so we're going to do a lot on that and China the other thing is a word which I told last year that lot of people do not agree I say in next 20 years or next 10 years China is going to place in five new new retail new manufacturing new financing new technology and new energy the new retail I think you have a heard about Daniel yesterday talked about in a detail the essence of new retail is from it's like shifting from selling product to people to serving the people for selling to services so new retail is going to be big and the other is new manufacturing I heard people ask other questions about new advanced manufacturing the way we eight years ago cloud computing and big data eight years ago women ization that because we know that in the future retail based on data manufacturing is about later so three in the past three years this company our company discussed lot much more than most of people in the world about IOT we believe i OT we think IOT is the future is the solution of solving the manufacture of a grading problem of China today a lot of people in America talk about açai Big Data especially AI sounds like if you do not talk about açai you are in trouble honestly we never talk about an AI in the company I hate people talking about AI Lika a I normally discussed by those come company with god data ai is normally taught by the academic professors we've been using that for law a long time I remember when our first the CEO of of a leap a you know the early plate transactions a big lot of thieves coming so in order to because if we like a leap a to those transactions amount we need at least the two thousand policemen maybe twenty thousand placements you cannot catch all the bad guys because when you have such a larger transaction or the bad guys come so we use machine learnings we hide over I think in our company more than two hundred policemen joined us they are all the expert of criminal behaviour so we teach computers to learn how to catch criminals if you are a thief a great thief camp can seek out ten ways of stealing money this is a great thief normally a thief can only take out two or three ways but computer carrier twenty thousand or two million ways so when the thief was think he is so smart with the idea with the machine will say I have seen this a hundred times so I think doing good thing to me AI doing good things for the other people normally irrational I just love you I like you I do things without thinking all the bad guys do bad things with logic if you have a logic AI can do a better job than you are so to my understanding machine learning and artificial intelligence is the best way to arrest bad guys we've been doing that on the e-commerce and Alipay for many years and we never call it AI and I think that the IOT it's going to be big because in the past years mushing all drink electricity next 20 years mushing will drink data's in the past 20 years we make people like a cook like a machine and next 20 years will make machine like a people so this is going to be big the China 2025 and the the Germany for point is zero this all moving to the datas and new financing new financing I think I'll repay has already all the into financing already told about that we are taxing we are not the think-tank syntax is still older financing syntax is try to to try to control 2080 the 2080 is a specialty for China big banks they serve 20% of the big companies and they made 80 percent profit for us we want to do 80/20 we want to serve 80% of the small business 80% of the consumers that never got a chance got chance to reach the financing we only we are happy about 20% profit Joey is all right 20% is good enough to me and also the new technology we are moving faster on cloud computing we are moving faster on the mobile technology we also investor on the operating systems we are having a laugh you know big vision that trying to be sure that Alibaba is a real high tech company I told the team the camp will have high company Alibaba should set a mic like a model is Google people say you know robbing is engineer mod a pony is an engineer a jicama is as a teacher or a Salesman no I'm not salesman I'm evangelist and I want to say is that evangelist believe in the future engineers believe technology and I believe technology is for the future I mean not be a good engineer I may not be a good engineer I actually am an engineer but I respect engineers than most of the engineer I respect them I listen to them I admire them but we communicate better I tell this is something if you do in that way you can solve a lot of problems if you do this way you can solve the engineer problems and they love that I work very well with all the engineers one of the examples we did is alley cloud computing doctor one gni working perfectly and most of Engineers hate cloud computing 80 years ago because they think this thing does not work and I believe this thing work and I never bargain with engineers how to make things happening but I tell this is the directions supposed to be so we're lucky and I I want to say we should build technology that is great for the future we should have built technology that solve the problem Alibaba is not the company that oh there are some money there so we should go there oh there's opportunity there we go there we grow from Taobao why we go Ali paid because if we do not have a leap a will collapse so we go to a leap a when we have Tallinn a leap a will see if we do have instead logistics world-class order logistics so we say now if we do not have the cloud computing all the traffic Allah make us collapse so when we do all these things we find out we're not happy so if we're not happy nobody will be happy so how can we make people happy then entertainment might be happy so we do things because customer need not because this is something that will make money today the more things we do the more human nature we understand the most things we work with with others window our problem our partners problem our customs problem so we want to be the custom the company that solved the customers problem so with that much opportunities in China the 5:00 news the growth faster growing China economy and China will be is the second largest economy might be the first largest economy in extra whatever years do you think China should have a few companies that are the top tier of the world so people are Alibaba is a Chinese company no yeah we are we're born in China but we grow for 21st century we grow for the world we are born in China but we made this company for the global so we having a great claim for globalization in our company every year we have at least four meetings amount of 300 senior management of Alibaba we say - in Chinese - in English if you cannot understand I'm sorry go back to learn English so most of the we will see more and more international people the the colleagues here we will stand all the Chinese the most of the Chinese the colleagues go outside to support so as the second-largest economy we think of China will have company like a wall my Microsoft IBM Google Apple that interests the world in the past years in the last century there are so many American companies that influence the world and be the number one so we think China may have the chance to have a cup of them and Alibaba hopefully will be the top the real top 10 of the world so what we have we have I think you see all the things what we have today but we think we have four people we have culture and the very important the other that we have is we have the datas if you'd look at the world today I don't know which country which company in the world that has such rich data than us have people say are you everywhere we are economy you invest anywhere you have you have no logic we have a logic you don't have a logic for economy because we have our economy logic you only have to think about because our you are your Amazon we're not Amazon Amazon is Amazon only buy based economy we are not a Google of course we have Amazon business we have Google business we have a physical business we have most of business you can see because we are economy and the economy to support this economic growth traditionally is the soil water the land the water and they end in the environment for our virtual economy the most important thing is data data is our water and so and the other is network the other is environment the value we create for our Alibaba users so this is the beta's that that's why and there's a conference there are a lot of conference in the future because Alibaba on that much data we know data is you have to be careful the privacy you have to have care for the data security I saw one of the questions Adam hmm how many data's that you have not used it yet 99.99 we have not used the yet because we don't know how to use these data this is something that we did eight years ago where we made decision for Alibaba become a data company we say we don't know how to make money out of the data but we know in the future no company no country no business can survive with that data's so we had to focus on data today if we cannot figure out the solving the problem of privacy and security then we should not using data the data just improve our business and how it's like yes when you conserve all the oils what do you worry about so we never worry about we have more data and we will continue to making sure that data is good for society for the globalization to be more inclusive sustainable and happy and healthy so that's it or something I will not say where data we are the people and and create culture and I will say the other things I'm happy about the most powerful organization the governing of the company we are partnership agreement and our partnership are so different from the investors partners and lawyers partners you'll probably can sure next time about our partner system so because the part of the system culture we guarantee that our company is a vision driven strategy we have to be vision driven we have to solve problems for the world we have to create a value for the customers and we have to be happy all the time so that's it that's what I want to say and hope to see you again next year and last year we have like 200 investors this year we like close to 400 we hope we can have 10,000 vectors someday here and not about data not about the data on the screen not about the not about the results and no forecast like Maggie said people in the future come here we want to share how we do the business how we go across the date from IT to deaky how we survive what the experience we want to be the company that can share experience with you guys thank you very much thank you

Channel: Adam Najberg

Views: 270,172

Keywords: jack ma, alibaba, investor day, hangzhou, gmv, e-commerce, retail

Id: W-T2h34O7ns

Length: 41min 59sec (2519 seconds)

Published: Fri Jun 16 2017