Alibaba

China’s ecommerce stores have 20-50 times more product

information than the equivalent store and, coupled with
extensive reviews, provide a comprehensive and reliable
source for finding out about products.

With You-tube blocked in China, the market is led by

Youku, which coincidently, Alibaba acquired the 80% it
didn’t already own in 2015 for $4.6 billion.

Innovation: When Google launched in 1998, its innovative

and clean approach to search dragged the Internet from
the dark clutches of Altavista, Excite and Yahoo results to
something that was useful. Any study into the world’s most
innovative companies is likely to include Google.

Whereas Google is the primary touch point for most online

research in the West, in China it’s Alibaba. This is reflected
in Alibaba’s digital advertising revenue which is forecast to
total $16 billion in 2017, more than two thirds higher than
Baidu’s (competitor) $9.3 billion. Derived mainly through
search, advertising revenue now accounts for 60% of
Alibaba’s overall revenue.

Logistics: Chinese e-commerce firm Alibaba Group

(BABA.N) has taken control of logistics unit Cainiao and
pledged to spend 100 billion yuan ($15 billion) over five
years to build out a global logistics network, underscoring
aggressive expansion plans overseas.
Alibaba will invest 5.3 billion yuan to boost its stake in
Cainiao Smart Logistics Network to 51 percent from 47
percent, giving it direct control over the loss-making
affiliate, suggesting a rough valuation of Cainiao at around
$20 billion.

The announcement comes as Alibaba rapidly expands its

e-commerce and logistics network abroad to diversify its
consumer base, including newly announced direct sales
channels in counties around Southeast Asia.

“Our commitment to Cainiao and additional investment in

logistics demonstrate Alibaba’s commitment to building
the most-efficient logistic network in China and around the
world,” Alibaba CEO Daniel Zhang said in a statement on
Tuesday.

Cainiao was the focus of an investigation last year by the

U.S. Securities and Exchange Commission (SEC) into
Alibaba’s accounting practices.

Alibaba, which will gain an extra seat on Cainiao’s board

giving it four out of a total seven seats, added that more
shares were issued in the funding round to other investors.
It did not give details about the other issuances, which
would impact Cainiao’s valuation.

The investment also signals Alibaba’s intention to boost

control over China’s domestic warehousing and delivery
market, increasingly competitive as firms seek to make use
of troves of logistics data about the country’s Internet-
savvy shoppers.