If it is not for the new crown pneumonia epidemic, the new retail business will be the highlight of Ali’s financial report, which will be the focus of the group’s recommendation and publicity.But now, due to the new crown pneumonia epidemic that has entered the public eye in the past month, many businesses in Ali, including new retail, are undergoing great tests.Alibaba Group released the financial report for the third fiscal quarter of fiscal 2020 (October-December 2019) before the market closed on Thursday.According to the financial report, as of December 31, 2019, Alibaba’s revenue in the third quarter of fiscal 2020 reached 161.46 billion yuan, an increase of 38% year-on-year.This is the first full quarterly financial report after Ali’s secondary listing, which has attracted the attention of investors in New York and Hong Kong.At the close on Thursday, Ali U.S. stocks closed down 1.76%.Figure: Alibaba began a public outbreak of the new crown pneumonia outbreak from an interview with Zhongnan Zhong on January 20, and the current literature and reports show that it was formed in December 2019.no effect.Nevertheless, the epidemic situation is the biggest concern in Ali’s various statements and the subsequent conference call of this earnings report.No company or individual can stay completely out of the epidemic, including Alibaba, which has a market value of nearly $ 600 billion.Difficult Taoism e-commerce This quarter, the growth in customer management and commission income contributed by Taobao and Tmall continued to slow, but new retail and direct business including Hema, Tmall Supermarket, Tmall International, etc. increased year-on-year.128%, and the proportion of revenue in the group since last quarter has exceeded the commission.Although the new retail business has a low gross profit and a small plate, it is still in the overall investment stage, but from a growth perspective, it is already an engine of revenue growth.The new retail business has more relationships with offline, Tmall International and Tmall Supermarket both need storage, and Hema is rooted in various forms of offline stores.The good news revealed in this financial report is that new retail, rookie logistics, and local life services, which are more closely related to offline, have maintained or even accelerated the growth of the previous quarters.The bad news is that it was immediately affected by the new crown pneumonia far more than 17 years ago during the SARS period. Due to traffic and people flow restrictions across the country, these businesses that have more relationships with offline companies bear the brunt, although these effects may not be immediately reflected inFinancially.Alibaba Group Chief Financial Officer Wu Wei was frank in the conference call after the financial report. Although Cainiao’s financial performance was okay, the actual impact was quite large.The reason behind it is very simple. From early February to now, the transportation-related capacity has not been restored.”The courier did not return, the capacity was not enough, and there was a backlog of packages. In fact, in the previous days, the capacity was only a dozen percent, less than 20,” Wu Wei said.The blue-collar courier was unable to return to the work place, and traffic was blocked in various places.Even for existing social transportation capacity, priority must be given to ensuring the logistics and transportation of medical supplies such as masks.Alibaba, which is a commodity trading platform, is not Superman, and clever women can hardly cook without rice.According to Zhang Yong, Chairman and CEO of Alibaba Group, businesses such as e-commerce, Hema Xiansheng, local life services, and flying pigs have been hit by the new crown pneumonia epidemic, and these have accounted for more than 80% of Ali’s business income structure.In order to solve this problem, Taobao Tmall recently launched a “shipment incentive policy” for platform merchants’ Spring Festival orders. Except in areas with severe epidemics such as Hubei and Wenzhou, Zhejiang, timely delivery of merchants can receive subsidies, and later than FebruaryOrders for the Spring Festival on the 14th will be punished, including payment of liquidated damages and deductions. The deducted points are directly related to the traffic received by merchants on Taobao Tmall.However, this policy is not welcomed by businesses, because the impact of the epidemic is national force majeure, and is not limited to areas with severe epidemics such as Hubei and Wenzhou.Therefore, the punishment measures are difficult to be applied across the board. 36% was informed that Ali will also launch a special application channel to adjust its policies flexibly in response to the epidemic.As an e-commerce platform, Ali is not unaware of the contradiction, but under the impact of the sudden outbreak and the Spring Festival holiday, even if the delivery time is extended multiple times, the socio-economic supply and demand relationship is extremely imbalanced.People are forced to stay at home, and they want all living consumption to be solved by takeaway and courier services. The demand for users on e-commerce and takeaway platforms has increased sharply; but due to the large number of courier and takeaway brothers unable to return to the city’s work place, the factory is difficult to resume, Commodity supply can not even restore daily levels.With these changes, Ali, who is trading on the information matching platform, is also in a dilemma.Ali’s traditional business and model pursue comprehensive and overall high-efficiency products and do not directly control logistics companies.So when the epidemic broke out at a special time like the Lunar New Year, it was difficult for all domestic logistics companies cooperating with Ali, except SF, to have uninterrupted capacity and a large backlog of consumer demand was difficult to release.In response to analyst questions, Zhang Yong said that the epidemic will stimulate consumer demand for food, daily necessities, and fast-moving products, while demand for clothing and consumer electronics is only temporarily suppressed, and will rebound after the epidemic.But on the supply side, China’s large-scale product supply, logistics capacity, and service supply have stalled under the epidemic.How Ali responds to the impact of supply testing at the other end is the top priority at present.Inspiration from Hema Xiansheng So, how should Internet companies respond to this epidemic?For pure online business, it is enough to provide a more convenient tool product to maintain the normal operation of the server without downtime.But trading physical goods and services is much more difficult.An appalling solution comes from Ali’s own business, Hema Xiansheng.Hema has continuously launched policies during the Spring Festival, absorbing employees from a number of catering chain companies such as Yunhai Cuisine to temporarily find employment in Hema, and will continue to expand this year to recruit 30,000 new employees.The catering service industry, which is rooted in offline, was most affected by the epidemic. The store could not be opened, and no financial input was made. However, if employees are not unemployed, empty wages will eventually lead to the closure of the company.Since the outbreak of the epidemic, chain catering and service companies such as Xibei have publicly stated that in the absence of income, their book funds can only last for a few months.Although people are not going out, they still have to eat.As a result, the fresh food e-commerce and grocery shopping businesses in the city have grown significantly, and the demand side has blown out, even if the distribution capacity remains normal.As a result, Hema, which was short of capacity, absorbed these idle human resources.Following the cooperation between several companies in the catering industry and Heda Motor as “shared employees”, Hema said that service industries such as hotels, cinemas, department stores, shopping malls, and even rental and car leasing have also gradually participated in this new type of enterprise mutual assistance.This mutual assistance has reduced the huge labor cost burden to the catering service industry, and can also supplement Hema’s own service capabilities in a very rare period to achieve a win-win situation. This is an invisible hand in the market.After Hema, Suning, JD.com and Dingding followed suit, but after a lot of trouble in the past two years, Ali has caused a lot of trouble in the industry mutual aid.Compared to Ali and JD.com, Pinduoduo is a more pure mobile Internet company. So far, no established business has an offline format.Although Pinduoduo’s involvement in manufacturing and agriculture is getting deeper and deeper, its ability to control logistics only has rapid-growing orders, while JD has its own team, and Ali has invested in most of the industry’s express delivery companies.On the other hand, Pinduoduo has always promoted the concept of transforming the end of the supply chain with demand, and in certain periods, demand for certain categories has blown out, others have been suppressed, and the balance between production and consumption has been disrupted. This situation may interfere with growthC2M mode.If this situation persists for too long, users may gradually shift to other self-operated e-commerce platforms that are more advantageous in terms of performance.The self-operated e-commerce of self-built logistics bears huge storage costs every day, which will be turned into an advantage in a special period like the epidemic.The two also came from Ali’s response, and received very different feedback.Taobao Tmall constantly adjusts its platform policy. On the one hand, it wants merchants to ship and fulfill their contracts as soon as possible, and on the other hand, it is necessary to ensure that consumers receive the goods in a timely manner, so as not to damage the consumer’s platform experience, thereby reducing long-term demand;Ma can stay in business, and can also adjust urgently and flexibly when there is insufficient capacity.At present, there is no conclusion as to when the new crown pneumonia epidemic will last, even if it is estimated optimistically, it will continue until April this year.In other words, throughout the first quarter, the Chinese economy will be shrouded in the shadow of the epidemic.It is also difficult for Ali to assess exactly how far this impact will be.”In terms of overall impact, we expect that the revenue growth in the March quarter will be negatively affected, and the growth rate will slow down. It is not ruled out that it is a relatively large slowdown. It is not known yet because it is only 2Mid-month. “Wu Wei said.There is no doubt that Ali today is far from Ali during the SARS period 17 years ago.What we can see is that many Internet companies represented by Alibaba have become the backbone of socio-economics and represent the new image of China internationally.Since the outbreak of the new crown pneumonia epidemic, Ali and many other companies have fulfilled their social responsibilities, donations, subsidies, and assistance. The greater the capacity, the greater the responsibility.However, in extraordinary times, sustaining services to consumers can increase consumer trust more than subsidies and aid.”It’s Alibaba’s mission to make the world free of difficult business. Now is the time to test our mission.” As the leader of Ali, Zhang Yong is going to lead Ali through the epidemic like Jack Ma 17 years ago.His challenge is not small..
Focus analysis | This time, how Ali solved the epidemic problem
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