Alibaba, GDEX and Efficient

Internet has drastically altered the way in which information is shared. Businesses today are moving towards a generation of trend, in which e-commerce has taken a large portion of the market share, combating the existence of brick and mortar. One of the recent hot news that caught my attention is on Alibaba U.S listing. Under the leadership of Jack-Ma, also the cofounder of Alibaba, this China based business to business marketing site serves more than 79 million member and more than 240 countries.

(Source: forbes.com)

Business Model

(Source: lazure2.wordpress.com)

Alibaba (Simplified Version)

(Source: ft.com)

Pictures that simplifies all of the hardship

- Alibaba Net Income in 2013 is more than Amazon and eBay combined

- Note that Alibaba Gross Merchandise volume in 2013 is $248 Billion, 2.5 times more than Amazon, 3.2 times more than eBay (lets visualize how big the Gross Merchandise volume is)

(Source: World Development Database)

- Extracted from World Development Indicator, World Bank, Measuring Nation GDP

ü  Note that Malaysia Nation GDP level is around $312 Billion

ü  Alibaba Gross Merchandise volume in 2013 ($248 Billion) is more than Greece GDP (241 Billion)

- Alibaba 4 Major Shareholder

ü  Softbank 34.4%

ü  Yahoo 22.6%

ü  Jack Ma 8.9%

ü  Joseph Tsai 3.6%

- Alibaba dominates China Market, Let’s have a look on china total population

(Source: en.wikipedia.org)

GDEX and Efficient E-Solution

(Source: ft.com)

-Alibaba Buys 10% of Singapore Post in the move to expand its business overseas and to create international e-commerce tie-up 

(Source: cimb company report)

-Singapore Post own 27% stake in GDEX and 21% stake in Efficient E-Solutions.

GDEX

(Source: gdexpress.com)

Efficient E-Solution

(Source: efficient.com.my)

-Believing Alibaba will be the largest e-commerce business in the history, expansion of their business will eventually spill over into Singapore & Malaysia. Surprisingly, in Malaysia, there are already few Alibaba office. In long term, I'm expecting a revenue boost in both Gdex and Efficient. Shortly, I’m betting on some price action upon Alibaba listing date (tentatively on 8^th August 2014)