WEBVTT - Alibaba.com President Kuo Zhang Talks Revenue Outlook

0:00:02.440 --> 0:00:08.719
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News. Quashin, president of the

0:00:08.760 --> 0:00:13.640
<v Speaker 1>business to business marketplace Alabama dot Com, spoke exclusively with

0:00:13.760 --> 0:00:19.759
<v Speaker 1>Bloomberg TVs Annabelle Drulers. They discussed China's economy, tariff impacts

0:00:19.880 --> 0:00:23.239
<v Speaker 1>on the SMEs that use the platform, as well as

0:00:23.280 --> 0:00:27.200
<v Speaker 1>the company's expansion plans and AI usage.

0:00:27.600 --> 0:00:31.240
<v Speaker 2>Let's just talk about the outlook for China's economy in

0:00:31.280 --> 0:00:33.320
<v Speaker 2>particular and what you're seeing, because I think what we

0:00:33.320 --> 0:00:36.440
<v Speaker 2>were discussing is that there's been quite a divergence or

0:00:36.440 --> 0:00:38.920
<v Speaker 2>a little bit of a divergence that's coming out now

0:00:38.960 --> 0:00:41.800
<v Speaker 2>between what we're seeing in the private readings and the

0:00:41.800 --> 0:00:45.920
<v Speaker 2>official readings for PMI in terms of the private survey

0:00:45.960 --> 0:00:49.120
<v Speaker 2>is looking a little bit more optimistic from the latest numbers,

0:00:49.120 --> 0:00:51.600
<v Speaker 2>and that's the one that really tracks the smaller businesses

0:00:51.600 --> 0:00:54.280
<v Speaker 2>and attracts the exporters in particular, and that's really what

0:00:54.920 --> 0:00:57.600
<v Speaker 2>you're seeing as well, as president of Alibaba dot Com.

0:00:57.640 --> 0:01:00.200
<v Speaker 2>So based on the businesses that you're dealing with with,

0:01:00.240 --> 0:01:03.320
<v Speaker 2>what would you say is the overall health and outlook

0:01:03.760 --> 0:01:04.720
<v Speaker 2>at this point in time.

0:01:05.120 --> 0:01:08.880
<v Speaker 3>So Alibaba dot Com, actually we serve around two hundred

0:01:08.920 --> 0:01:14.200
<v Speaker 3>thousand Smese suppliers in China and also globally. And what

0:01:14.280 --> 0:01:16.600
<v Speaker 3>do we see this year nervous last year? I think

0:01:16.680 --> 0:01:19.679
<v Speaker 3>several things. The first one is more and more Smese.

0:01:19.760 --> 0:01:23.680
<v Speaker 3>It's willing to participate in the global trade, so they

0:01:23.720 --> 0:01:27.319
<v Speaker 3>are more willing to sell globally. So one example is

0:01:27.360 --> 0:01:30.760
<v Speaker 3>that so there's a small city in EU, you know,

0:01:30.959 --> 0:01:35.000
<v Speaker 3>all commodities actually setting and distributing in you. And for

0:01:35.080 --> 0:01:39.280
<v Speaker 3>the first to the first quarter of this fiscal year,

0:01:39.760 --> 0:01:44.640
<v Speaker 3>so customers in you who join Alibaba dot Com actually

0:01:44.680 --> 0:01:47.000
<v Speaker 3>grow seventy percent comparis last year.

0:01:47.280 --> 0:01:52.160
<v Speaker 2>Where are you really aiming to expand than Alibaba dot Com?

0:01:52.200 --> 0:01:53.600
<v Speaker 2>Which markets are you going after?

0:01:56.320 --> 0:01:59.320
<v Speaker 3>So let's say from the buyer side and the supplier side,

0:01:59.400 --> 0:02:03.840
<v Speaker 3>So from from supplies side, actually we expand the supplies.

0:02:04.240 --> 0:02:06.400
<v Speaker 3>So now it's not only in China, but it also

0:02:06.680 --> 0:02:10.639
<v Speaker 3>expand globally as well, like in Southeast Asia, in career,

0:02:11.120 --> 0:02:15.560
<v Speaker 3>in Europe, in Mexico and the North America and LUSI.

0:02:15.680 --> 0:02:19.200
<v Speaker 3>Actually we do acquisition in Europe Colle visible, which is

0:02:19.240 --> 0:02:22.480
<v Speaker 3>the biggest kind of marketplace in Europe VOV for the

0:02:22.560 --> 0:02:25.920
<v Speaker 3>Dutch language area and Europeages for the rest of Europe.

0:02:26.160 --> 0:02:29.760
<v Speaker 3>So now we are supporting them from the technology perspective

0:02:29.800 --> 0:02:33.079
<v Speaker 3>to enable them to boost from the yellow pages to

0:02:33.160 --> 0:02:37.600
<v Speaker 3>transactions to the kind of like like the guarantee services

0:02:37.639 --> 0:02:41.840
<v Speaker 3>that we're provided to help the intro business kind of trade,

0:02:42.040 --> 0:02:44.679
<v Speaker 3>and Aliba dot Com can help the global asms do

0:02:44.919 --> 0:02:47.600
<v Speaker 3>the cross border trade. So this this is what I'm

0:02:47.639 --> 0:02:50.639
<v Speaker 3>going to expand and for the buyers that actually it

0:02:50.720 --> 0:02:54.560
<v Speaker 3>is the global buyers. The buyers which is booming now

0:02:54.680 --> 0:02:57.240
<v Speaker 3>is in US and Europe and also in Latin America,

0:02:57.320 --> 0:03:01.720
<v Speaker 3>and soisition is kind of for deraping countries and different

0:03:01.760 --> 0:03:07.720
<v Speaker 3>countries actually help the different type of demands for different categories.

0:03:09.040 --> 0:03:11.520
<v Speaker 2>The value proposition I think from a buyer is pretty clear.

0:03:11.600 --> 0:03:14.600
<v Speaker 2>You can say, but perhaps a product for a cheaper price.

0:03:15.160 --> 0:03:17.040
<v Speaker 2>What do you think then that there are concerns around

0:03:17.040 --> 0:03:20.359
<v Speaker 2>over capacity, for instance, from a lot of different European countries,

0:03:20.400 --> 0:03:22.959
<v Speaker 2>how do you respond to those concerns Because that sort

0:03:22.960 --> 0:03:26.400
<v Speaker 2>of does speak quite closely to the Alibaba dot Com

0:03:26.400 --> 0:03:30.640
<v Speaker 2>model of being able to connect more supplies to new

0:03:30.760 --> 0:03:34.200
<v Speaker 2>markets and offer good products for lower prices.

0:03:35.000 --> 0:03:38.200
<v Speaker 3>So in one way that we are kind of enriched

0:03:38.240 --> 0:03:44.880
<v Speaker 3>our selections. There's multiple supplies, like supplies in Europe. So

0:03:44.960 --> 0:03:48.760
<v Speaker 3>we see there's a great supplies for fashion in France,

0:03:49.320 --> 0:03:52.560
<v Speaker 3>like wires in Italy and the machineries in Germany and

0:03:52.840 --> 0:03:55.800
<v Speaker 3>Italy as well, so there's a lot of SMEs actually

0:03:55.840 --> 0:03:58.600
<v Speaker 3>doing a great job on Alababa dot com and as well,

0:03:58.640 --> 0:04:03.840
<v Speaker 3>as we mentioned before that we do acquisition investment on Visible,

0:04:04.680 --> 0:04:07.720
<v Speaker 3>we do that not only for it's not only for

0:04:07.760 --> 0:04:11.360
<v Speaker 3>a kind of financial investment. We are going to use

0:04:11.440 --> 0:04:14.400
<v Speaker 3>our technology at the no House to kind of boost

0:04:14.600 --> 0:04:18.719
<v Speaker 3>their technology engine to help the small and medium business

0:04:19.360 --> 0:04:23.400
<v Speaker 3>within the Europe to do the kind of intra Europe collaboration.

0:04:23.800 --> 0:04:26.119
<v Speaker 3>So I think there's a one part. The second part

0:04:26.279 --> 0:04:31.279
<v Speaker 3>is the fundamental rule for global trade is supply and demand.

0:04:32.120 --> 0:04:35.840
<v Speaker 3>So if there is a demand require for kind of

0:04:36.040 --> 0:04:40.080
<v Speaker 3>quality product with a better price, and what we are

0:04:40.120 --> 0:04:43.599
<v Speaker 3>going to provide is to lower the barrier for both sides.

0:04:44.240 --> 0:04:47.720
<v Speaker 3>So the same is them selfs entrepreneurs themselves can survive

0:04:47.800 --> 0:04:49.960
<v Speaker 3>and get enough margin out of that that can make

0:04:50.000 --> 0:04:50.479
<v Speaker 3>a business.

0:04:50.880 --> 0:04:53.080
<v Speaker 2>Earlier this year we did some reporting from the Canton

0:04:53.200 --> 0:04:55.240
<v Speaker 2>Trade Fair and some of the different people that we

0:04:55.240 --> 0:04:57.799
<v Speaker 2>were speaking to this so that even with the risk

0:04:57.880 --> 0:05:01.200
<v Speaker 2>of some very hefty tariffs and that referring to the

0:05:01.320 --> 0:05:04.839
<v Speaker 2>possible Trump tariffs if you were elected president again, but

0:05:04.880 --> 0:05:07.479
<v Speaker 2>they would be able to withstand them given that the

0:05:07.560 --> 0:05:11.200
<v Speaker 2>price is so competitive that's coming from China, and the

0:05:11.279 --> 0:05:14.240
<v Speaker 2>quality as well is also so high that it still

0:05:14.279 --> 0:05:19.279
<v Speaker 2>is a very competitive and compelling way or area or

0:05:19.279 --> 0:05:23.360
<v Speaker 2>country to purchase from. What's your view on how much

0:05:23.520 --> 0:05:26.040
<v Speaker 2>Chinese companies in the SMEs that are on the platform,

0:05:26.080 --> 0:05:28.760
<v Speaker 2>how much can they withstand that risk of extra levees

0:05:28.760 --> 0:05:29.960
<v Speaker 2>being applied to their products?

0:05:30.080 --> 0:05:35.479
<v Speaker 3>Okay, all entrepreneurs, from their eyes, there are many problems

0:05:35.480 --> 0:05:38.280
<v Speaker 3>that they need to serve. So what a product I'm

0:05:38.320 --> 0:05:42.400
<v Speaker 3>going to provide, what type of employees A'm going to hair?

0:05:43.080 --> 0:05:47.680
<v Speaker 3>And what about the kind of how to say the

0:05:47.800 --> 0:05:52.720
<v Speaker 3>economics pax and pariff is only one part.

0:05:52.520 --> 0:05:53.159
<v Speaker 1>Of the tax.

0:05:54.040 --> 0:05:57.320
<v Speaker 3>So when we see the global supply and demand, we're

0:05:57.320 --> 0:06:00.880
<v Speaker 3>starting from the fundamental ones and how to the efficiency

0:06:01.240 --> 0:06:03.680
<v Speaker 3>and how to help them to build up their own

0:06:03.720 --> 0:06:06.280
<v Speaker 3>business based on the global supply chain which is more

0:06:06.320 --> 0:06:09.560
<v Speaker 3>competitive for the Assamese. So that's just what do.

0:06:09.440 --> 0:06:10.440
<v Speaker 2>We do today.

0:06:10.760 --> 0:06:14.960
<v Speaker 1>That's Alabama dot Com president Qua Juang speaking with Bloomberg

0:06:15.040 --> 0:06:19.800
<v Speaker 1>TVs Annabelle Rulers to hear more conversations like this, Subscribe

0:06:19.839 --> 0:06:21.760
<v Speaker 1>to the Bloomberg Talks podcast.