Late Exclusive丨Ali Chairman and CEO Zhang Yong: How the market changes, we are still us

Taobao, which is opened by more than 300 million people every day, was born in 2003. That year was catching up with SARS. At that time, people were in the same state as most people today. Because of the epidemic, they were isolated from home and worked from home, and the whole of China’s normal life and business activities. Was changed.

Although it is also full of uncertainty about the direction of the epidemic, during that time, Ali’s business has grown rapidly. Within three months of the SARS period, more than 40% of Alibaba’s Chinese supplier business (used to release supply and demand information between merchants) reached transactions, with 160 million visits per month and more than 1 million yuan per day. Cash income; Taobao was born in 2003. It was ranked in the top 100 global applications in only 6 months. The number of members exceeded 6 million in less than two years. eBay eBay.

In 2003, that year was the beginning of China’s Internet changes. Before that, the focus of the Internet was still on the three major portals of Sina, Sohu and NetEase. In the following ten years, the BAT (Baidu, Ali) recognized by the Internet industry , Tencent) all three companies began to emerge after this year.

In order to commemorate the spirit of mutual help and mutual love among Alibaba employees and relatives during that period, Alibaba began in 2005 and designated May 10 every year as “Ali Relatives and Friends Day”, which is also the day when Taobao website was officially launched.

“510 Ali Day” is Ali’s annual event day. From 10:00 am to 11:30 am, it is a meeting with relatives and friends, and from 1:00 pm to 3:30 pm is the mass wedding of 102 pairs of employees. Both were chaired by Zhang Yong, chairman and CEO of Alibaba.

Today (May 10), it was rainy and rainy in Yuhang District, Hangzhou City. Zhang Yong said at the group wedding that this year’s weather is not as good as in previous years, but just like what we have encountered in our life, there will be cloudy and sunny days, and there will be sunny days. Rain or shine, you can find a unique mood and a taste of life.

At the meeting with relatives and friends, Ali Chief Talent Officer (CPO) Tong Wenhong shared the data. At present, Ali has more than 250,000 people, including more than 70,000 people in e-commerce business, more than 20,000 people in local life business, and more than 10,000 people in technology and logistics. There are also more than 100,000 people from Sun Art Retail, which was consolidated in October 2020. These employees are located in 27 countries around the world, mostly in more than 800 office locations in 170 cities in China.

Zhang Yong did not shy away from the various pressures Ali faces. He said that since the end of the previous year, Ali has been on the cusp of the development of Internet platform economic regulation; all Ali people are concerned about “Can Ali be better”, and each individual also hopes to have a good small environment in this big environment . He emphasized that “be confident and introspective”.

Focusing on the strategy, Zhang Yong introduced the situation in the past year: domestic demand, Ali is steadily moving towards the established goal of serving 1 billion consumers in fiscal year 2022; globalization, Ali has 300 million consumers overseas and 10,000 employees in six countries in Southeast Asia ; High-tech, Alibaba Cloud is the No. 1 cloud computing service provider in China and even in Asia.

More than half of the employees who have worked in Ali for less than three years have already worked in Ali, and about 30% of the employees who have worked in Ali for more than five years. Zhang Yong emphasized that there must be young people in the company’s development. He said: “A generation of Alibaba people creates a generation of Alibaba, and constantly new blood joins to push the company forward.”

There will be a sharing session after the group wedding – both Tong Wenhong and Zhang Yong participated, and “LatePost” exclusively learned some of the content shared by Zhang Yong, including his views on the epidemic, globalization, market competition and organizational culture. .

The current situation of the Internet is even more severe than it was 19 years ago in the fight against SARS. For the past year and a half, Ali has been in a “cloudy and sunny” environment. In mid-March, the share price of Alibaba’s Hong Kong stock fell to HK$71, the lowest price since its listing in Hong Kong, with a market value of HK$1.54 trillion (about US$196.7 billion), only about 40% of its listing in Hong Kong.

An Ali employee asked an online question that Ali Day was born in “SARS”. Now during the new crown, the economy is down and the international environment is turbulent. “Ali is standing at a similar point in time. How to break the situation?”

Affected by the epidemic, today’s Alibaba Xixi Park is only open to representatives of a few family members, but more than 100,000 people have watched the webcast. How the CEO of one of China’s largest Internet companies sees the world may shed some light.

The following are the key points shared by Zhang Yong organized by “LatePost”:

1 About the epidemic

  • In the face of the epidemic today, we need to think from a different angle, instead of doing many of the jobs we are used to, we are fulfilling our corporate social responsibilities. Help more businesses, help them to have the flow of funds, and the flow of goods, and they will be able to hire more people.
  • Ali service consumption must be considered as a precondition in specific scenarios. In the epidemic environment, all consumer services without certainty of performance are actually a bit hooligan. He just said that he helped him generate an order, but he couldn’t deliver it. This must be a big problem.
  • Ali may not be able to solve all the problems of merchants, but it can help at least some merchants to solve some of his problems. Today is not a lack of supply. If any point in the circulation process is blocked, the entire chain will be blocked. Can we find a way to really do a good job in circulation, logistics, and contract performance, so that the supply can reach consumers smoothly.

2 About globalization

  • Talking about globalization has a precondition: in the changing international situation. Globalization is a long-term path. We must start learning from now, not only to do globalized business, but also to have globalized talents, globalized organizations and globalized culture. Today, Ali needs a large number of global talents, but global talents are based in China and look at the world.
  • Some time ago, I chatted with the team and said that sitting in Hangzhou to talk about globalization, I always felt that the taste was a little bad. It is not that you can’t chat in Hangzhou, but just talking in Hangzhou is not enough.
  • There are two things about globalization: one is the globalization of consumption, and the other is the globalization of cloud computing. These two things are inseparable from the local ecology, consumption ecology and technology ecology. It is necessary to think about the problem from a local perspective, understand the local pain points, and see what Ali can help in the middle, instead of simply saying that Ali will do it in China. What you have done, move overseas and do it again. The same is true of cloud computing. Different countries have different ecosystems, which are completely different.

3 About strategic direction and market competition

  • Whether globally or domestically, it is easy to see that one player will appear in the east today, and one will appear in the west tomorrow, and we will study them for a long time. My point of view, no matter how thorough the research is, others are others, and we are us.
  • The current model of digital commerce is definitely not just a Market Place (trading platform), Market Place will also evolve and can redefine this thing. On this issue, we still have to ask how to use what Ali has and how to make up for what it lacks. On a premise, what problems do you solve for users?
  • How does Ali learn from other players in the market, understand the connotation behind their operations, and absorb the changes that can be melted into Ali’s user products and commercial products. My point of view has always been that when Internet companies are doing e-commerce today, as long as there is traffic, they have the opportunity to do it. Why? Big water and big fish, with big water it is possible to raise fish, but the key is what fish you raise, which is the core issue.
  • How the market changes, we are still us. Don’t get carried away when the market is good, and don’t belittle yourself when the market is bad. Ali’s confidence in the future and its value to society have not changed because of the ebb and flow of the capital market.
  • The one who understands Ali the most today is ourselves. We must have confidence in all Ali people and in what we do. Confidence comes from our ability to create value for our customers and for society.

4 About organization and culture

  • To solve the problem of organizational agility, which is also a painful involution, I think it is still necessary to start from the top, (setting) a clear and rigorous decision and common goals, core strategies and alignment with everyone can make efficiency better. Ali is now a large business organization. It must have clear strategic goals and campaign goals, and then divide labor and organize in order to achieve success. This exists not only at the group level, but also at the sectoral level in each sector. The better these tasks are decomposed, the better the productivity and creativity of Ali students will be.
  • Cultural issues are first and foremost related to the number one position in business. Today, when we talk about culture, we are talking about the way people get along with each other and the way we do things. For a large business organization to move forward, the final culture is still our choice on some basic right and wrong issues.
  • I think that Ali culture must start from the senior classmates, whether there are decisive choices and trade-offs on some major issues or issues that seem to be minor and minor, but are actually major. This trade-off is more important than talking about culture a hundred times.
  • The important thing is whether everyone can tell the truth behind the scenes, whether they can not only say good things, but also speak out their problems, and whether they can speak out their own entanglements. (If) everyone at each level can start from themselves, we will become simpler, get along with each other, be a simple person, do things simply, and be able to understand each other’s difficulties and understand his goals.

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