cainiao business model

For more information, please visit . We aim to deliver anywhere in China within 24 hours, and globally within 72 hours. CAINIAO-Demand Forecast & Storage Planning Project. James Zhao, general manager, Cainiao global supply chain, joined the business in 2014 after 12 years in a number of product and marketing management roles at eBay, FedEx, and TravelSky. ME Modern Economy 2152-7245 Scientific Research Publishing 10.4236/me.2018.911111 ME-88500 Articles Business&Economics A Study on the Profit Model of Cainiao Logistics Based on Resource Sharing Pattern Jing Chen 1 1 School of Business Administration, South China University of Technology, Guangzhou, China 12 11 2018 09 11 1765 1775 26, October . The key components of a business model should include relating to your target customers, the market, organization strengths and challenges, essential elements of the product, and how it will be sold. Alibaba boasts greener 11.11 shopping event help cut computing usage by half. By official estimates, China's logistics labor force will fall by 25% before 2050, a shift already underway with the rapid rise of e-commerce. Alibaba's Cainiao Network 高级战略专家 at Cainiao Network Wellesley, Massachusetts . Join Cainiao at the largest annual Global Smart Logistics Summit from 9-10 June 2021 and find out how a smart logistics network can deliver greater business resilience and success in today's . . 4.5. "Cainiao is planning to deploy nearly 3,000 self-pick-up facilities in Spain, France, and Poland by March 2022, working with local partners to improve the logistics experience for European consumers," he said, adding that . It is a business within Alibaba Group. asia/cainiao-business-model (accessed July 23, 2018). "They're realizing that it's much more capital-intensive than they expected to build this out," said Christopher Balding, an associate professor at the HSBC School of Business at Peking University in Shenzhen. Taobao was developed as a third-party ecommerce platform between sellers and buyers, and gradually became a sound ecommerce ecosystem through the introduction of Alipay. We take a collaborative approach to logistics. Background. Xiong Wei said that Cainiao is promoting a self-pick up model in Europe to provide better services for local consumers. Cainiao will be working closely with Hainan to provide holistic smart logistics services to merchants from around the world. The business model of Alibaba is made up of three web portals namely Taobao, Alibaba.com and Tmall. The network comprising Cainiao Hubs, also known as cHubs, will cover a total land area close to 2.5 million square meters. more in the business and . Cainiao, a start-up, is disrupting the logistics industry. The business model involves partnering with those logistics providers, both in China and abroad, and linking them together through Cainiao's software and online network. Instead, Cainiao, in which Alibaba owns a 47 percent stake, provides a data-driven logistics platform to about 90 Chinese and international logistics companies. B. Lyu, G., Chen, L. and Huo, B. BUSINESS The rise of platform-based companies is a phenomenon commonly observed in the last decade. The total number of users that used Cainiao Guoguo's services from September 2018 to August 2019. The business model of cainiao logistics. model building, alternative . Cainiao is expected to operate about 1,300 chartered flights by the end of 2020. This company is on to take on the online marketplace globally. Their business models have huge differences, but in logistics, Alibaba's Cainiao Network and JD Logistics have both thrown traditional e-commerce logistics business models away and created market-specific solutions. the business model canvas covers the four main areas of any venture: customers, offering, infrastructure, and financial viability. Cainiao has developed a "swarm intelligence" AI model in which a large number of robots work collaboratively while bidding to make optimal use of warehouse resources. Cainiao has developed a "swarm intelligence" AI model in which a large number of robots work collaboratively while bidding to make optimal use of warehouse resources. First and foremost, the company sells goods directly. Crowdsourcing model App for delivery personnel Leveraging existing delivery capacity 100%+ Package Volume YoY Growth(2) 100Mn+ Annual Users(1) App for consumers Notes: 1. "ONE PLATFORM TO RULE THEM ALL: FORMATION OF CAINIAO'S BUSINESS MODEL (PII)". These subsidiaries are well integrated that they make Alibaba a big ecosystem. asia/cainiao-business-model (accessed July 23, 2018). Alibaba ( BABA) Alibaba Group Holding Ltd. is a Chinese e-commerce giant, founded by Jack Ma, that operates various online marketplaces that cater to different market segments. 4. China's largest e-commerce company agreed to increase its stake in Cainiao Smart Logistics Network Ltd. to 51 percent via a 5.3 billion yuan ($800 . Since Cainiao's founding in 2013, we have embraced this u nique . When Cainiao Network was established, it positioned itself as an internet company with an asset-light business model, insisting it would not provide courier services, buy trucks or recruit any delivery staff. Cainiao also hopes to put cHubs in a prime position to establish an innovative supply chain infrastructure while supporting local B2B and B2C businesses in their local distribution, supply chain . It extends e-commerce network and increase online retail transactions. AFP. Special thanks to . Other than these there are other subsidiaries such as 1688, Aliexpress, Ant Finance, Alibaba Cloud, Alimama and Cainiao network. Ecommerce IQ. Analysis of Profit Mod el . It offers a ten-day delivery service at $5 in major European countries, helping many Chinese merchants find new opportunities in previously unfamiliar markets. Express cabinets have quietly risen, but the business model is still unclear or may become capital to enter the market 2021-10-18T22:45:31.034Z Reading tips The emergence of smart express cabinets can provide users with a 24-hour self-service pickup service, which seems to allow the "last mile" problem to be solved effectively. School of Business Administration, South China University of Technology, Guangzhou, China . However, this business of trust is about to be disrupted and transformed with the advent of blockchain technology. Its founders include Jack Ma and his team of 17 friends and students. Amazon's Business Model . The new brand will work closely with Alibaba's logistics unit Cainiao and food delivery service Ele.me . Ecommerce IQ. . Since its founding in 2013, Cainiao has embraced the business model to rapidly establish industry partnerships and adopted a digital-first approach to scale its logistics services for businesses and consumers. Translating their aspiration into reality. Alibaba's latest move shows that community group buying remains a hot business model . * Amazon dominates the American shopping space, while Alibaba does the same in China. At its core, Alibaba is a marketplace, while JD.com is a retailer. and strong analytical competency with business intelligence and data visualization applications. Supply chain management literature recognizes that interorganizational networks provide resources that convey critical benefits, such as capital, competitive advantage and efficient strategy implementation. Cainiao has been launching direct routes to major regions across the globe. . Cainiao Network is a Logistics data platform operator dedicated to meeting the current and future logistics demands of China's online and mobile commerce sector. The purpose of this paper is to leverage network theory and identify technological innovations as the antecedents for organizations to achieve stronger interorganizational networks. One Platform to Rule Them All: 5 Pillars of Cainiao Business Model | eIQ However, over the years Alibaba increased its stake in its logistics affiliate and Alibaba is now a controlling shareholder . Cainiao has a partnership network of 15 companies with over 1.5 million delivery employees across the country. Established in 2013, Cainiao Network is dedicated to meeting Alibaba Group's logistics vision of fulfilling consumer orders within 24 hours in China and within 72 hours anywhere else in the world. Alibaba's e-commerce business model is marketplace-based and facilitates transactions between buyers and sellers. Last month, it announced a partnership with BEST Inc. to launch an end-to-end logistics service between Malaysia and China to shorten delivery time for cross-border e-commerce parcels. "ONE PLATFORM TO RULE THEM ALL: JACK MA'S PLAN TO DOMINATE LOGISTICS (PIV)" Photo by alizila.com. It has 617 million monthly active users and generated $23 billion in revenues in 2017. Stage 1: The Birth of Cainiao to Serve The Motherland. TCS, Building on belief. But a more interesting take on that is the data-sharing model as recently discussed in a Harvard Business Review article on effective digital collaborations, where companies undertake data sharing via horizontal partnerships.. Business Model. (e.g.,- Cainiao's unique business model, the . Revenue for the segment grew 15.4% compared to the . Answer: * Amazon and Alibaba are both e-commerce giants operating largely without physical stores. The purpose of this paper is to leverage network theory and identify technological innovations as the antecedents for organizations to achieve stronger interorganizational networks. Building on their ambition and optimism to transform their business for the better. The impediment to the growth of e-commerce is no longer consumer demand, which has soared in the past year as . CYNTHIA LUO. Cainiao Network, Alibaba's logistics arm, is an example of 224 dispatch destinations and more than 20 core cities. Often touted as the largest online retailer in the world, Amazon operates a business model with many moving parts. Cainiao Network Overview (As of September 2016) Who We Are Cainiao Network Technology Co., Ltd ("Cainiao"), founded by an Alibaba-led consortium in 2013, is a 47%-owned logistics affiliate of Alibaba Group. The business model involves partnering with those logistics providers, both in China and abroad, and linking them together through Cainiao's software and online network. An aerial view of a port in Qingdao, east China's Shandong province. There are nine building blocks that describe and assess a business model: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key . The logistics arm of Alibaba Group. BEST Inc. Partners with Cainiao to Launch Cross-border Logistics Services from China to Thailand, Vietnam and Cambodia; . Cainiao's expansive warehouse and delivery footprint is also a plus since Alibaba does not hold their own inventory. Cainiao Network, the logistics arm of Alibaba Group, announced a long-term plan to establish its smart warehouse network in Southeast Asia, including Vietnam, Indonesia, Malaysia and Singapore. At Alibaba, our e-commerce platform accumulated massive amount of data from both buyers and sellers. To realize this vision, Cainiao Network continues to build and operates a global fulfillment network together with its logistics partners. by leveraging technology and business model innovation to create a smarter . Alibaba holds a controlling interest in logistics operator Cainiao, which was set up in 2013 and is a collaboration including warehousing, trucking and the last mile. It is the world's largest eCommerce company and is a mashup of Amazon, PayPal and ebay with an even broader scope. The company's . Revenue however also tripled, to 9.4 billion yuan. A . We help them make a meaningful difference. A Study on the Profit Model of Cainiao Logistics Based on Resource Sharing Pattern . Logistic (Cainiao) It is a key element of e-commerce. Alibaba's Business Model - How the eCommerce Giant Makes Money. (2019), " The impact of logistics platforms and location on logistics resource integration and operational . As more partners join the network, its efficiency improves as all transactions in the logistics ecosystem are captured, analyzed and used in one data exchange to make informed decisions, e.g. By Tricia McKinnon. Supply chain management literature recognizes that interorganizational networks provide resources that convey critical benefits, such as capital, competitive advantage and efficient strategy implementation. Furthermore, Alibaba has six more subsidiaries: AliExpress, 1688, Alimama, Alibaba Cloud, Ant Financial, and Cainiao Network. With such a targeted approach, customs authorities expect Hainan's duty-free business this year to hit $9 billion, which would be up by 80% on 2020, while $15.5 billion is the goal for 2022. It's essentially a massive, asset-light, data-sharing platform, with Alibaba owning very little of the infrastructure. Our innovative data platform drives efficiency in Three primary web portals make up the Alibaba Business model: Alibaba.com, Taobao, and Tmall. In the 12 months to March, this network claims to have delivered 8.6 billion packages . Cainiao seems like an incredibly complimentary business model since their business proposition is centered around streamlining China's fragmented package delivery system using data and digital intelligence. an application softw are development ba se of 3PL, is worth learning. DECEMBER 8, 2016. Source: By author. Business Model Canvas for Alibaba C2C represented by Taobao Alibaba e-commerce ecosystem for all necessary supports System with more than 400 million real-name register users Worldwide licenses The platform itself as a marketplace bao Platform itself (website and mobile app) Social and online media Partner program Cost Structure IT costs and system development Staff costs Customer acquisition . DECEMBER 9, 2016. Connect with us: Facebook Twitter Stocktwits Discord Patreon. The company first started in 1999 in Zhejiang, China. This is a huge hit for e-commerce providers, so many companies choose to build self-electric logistics warehousing. The domestic independent logistics cost is 4.5 to 5 yuan, while the cost of 3PL is 10, of which the customer experience is difficult to control. The two companies are catering to different-sized populations and have different overall business models, but the contrast is still striking. Since . Platform companies' rise is a phenomenon most commonly observed in this decade. Alibaba is a Chinese multinational technology company that operates in the e-commerce market. This model was very effective in China, also because Cainiao uses network effects more than other logistics companies. Cainiao made a net loss of 2.2 billion yuan in calendar 2016, tripling from 2015. 2. Unlike Amazon and JD.com, Alibaba does not purchase and resell inventory nor does it own or operate its own fulfilment and distribution centres. There are 6 other areas in which subsidiaries of Alibaba Business Model which include Aliexpress, 1688, Alimama, Alibaba Cloud, Ant Financial, and Cainiao Network. June 2019 versus June 2018. Cainiao's innovative and asset light model shows how businesses can be resilient in times of crises. All of them connect buyers and sellers in various ways. Alibaba Business Model and How it Makes Money. Regarding its specific business model, Cainiao Network is an extension of Alibaba's Taobao model, both commercially as well as conceptually. Capitalizing on Cainiao's broader plans to create a nationwide network of community post stations across 100 cities, job opportunities were created to support aspiring entrepreneurs in setting up their very own Cainiao-branded Community Post stations.Aspiring entrepreneurs can benefit from a lower barrier of entry and ability to leverage Cainiao's brand recognition to launch their first . Cainiao will also set up 100,000 pickup stations through "Cainiao Post," a last-mile delivery business of Cainiao, to increase delivery options. The company has taken a . As a platform business, Cainiao does not own nor operate any aircraft but instead works with airline partners: "We have always had air cargo service via our . A mix of free and paid services, the freemium model is mostly used by tech companies in the Software as a Service (SaaS) or apps business model. By official estimates, China's logistics labor force will fall by 25% before 2050, a shift already underway with the rapid rise of e-commerce. Alibaba's revenue from Cainiao rose 48% annually to 4.8 billion yuan ($666 million) last quarter and accounted for 4% of its top line -- but that's also low-margin revenue. The company says next-day delivery of groceries is set to expand to 50 cities by the end of this year, and same-day delivery of groceries to 15 cities . Cainiao's Office. HANGZHOU, China, Aug. 2, 2021 /PRNewswire/ -- BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading integrated smart supply chain solutions and logistics services provider in China, today launched its full-chain, direct logistics service to ship parcels from China to Thailand, Vietnam and Cambodia.The services will be operated in partnership with Cainiao Smart Logistics Network . Cainiao plans to connect 100 million smart devices to its IoT technologies between 2020 and 2022, including its warehouses, delivery robots and algorithm-backed management systems. "Smart Platform" and asset-light business model. It aspires to do 72-hour delivery to anywhere in the world and ensures delivery within 24 hours to any region of the country to reduce waiting hours. BEST's mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. BEST's mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. The advantages of this model over e-commerce companies that own and operate their own delivery networks is reflected in the speed with which Cainiao is rolling out FCMG delivery in China. To grow business and acquire customers, companies offer free (lite) versions to customers but for a limited time or with limited features. Specific Business Model. Alimama. Abstract The fourth-party logistics (4PL) based on resource sharing pattern is inevita- 1.1 Disrupting the Business of Trust - The Emergence of Blockchain Technology For centuries, businesses and in some cases entire industries have been built on the simple principle of trust between multiple parties. HANGZHOU, China, Aug. 1, 2021 /PRNewswire/ — BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading integrated smart supply chain solutions and logistics services provider in China, today launched its full-chain, direct logistics service to ship parcels from China to Thailand, Vietnam and Cambodia.The services will be operated in partnership with Cainiao Smart Logistics Network . Cainiao's cargo aircraft. So their contribution is felt by their customers and the communities they serve. HANGZHOU, China — Alibaba Group Holding Ltd. will buy control of unprofitable delivery business Cainiao for about $800 million and spend billions of dollars more to expand a shipping network that spans the world's largest e-commerce market. All these subsidiaries work to make Alibaba a big ecosystem. The online retailer and courier have opened 60 locker locations in the French capital, mostly in central business districts and main tourist areas such as the Palace of Versailles and the Tour Montparnasse, Hangzhou-based Cainiao said in a statement yesterday. Freemium business model. As part of the partnership, Cainiao will be leveraging its global logistics capabilities and technology to establish Hainan as a trade center and pilot model for the digital economy. It is the sellers responsibility for organising delivery to the buyer either direct . At its core, Alibaba is a marketplace, while JD.com is a retailer. At TCS, we go beyond helping businesses transform through technology. This news comes after BEST's partnership with Cainiao Network last year to launch cross . A business model should answer important questions about your business and set out a strong vision for the business. | Founded in 2013, Cainiao . Cainiao real estate business model t hat acts as . Digital media and entertainment is Alibaba's third-largest source of revenue at $1.3 billion, or about 4% of total revenue, as of Q1 FY 2022. Alibaba said it reduced carbon emissions by 26,000 tons during this year's 11.11 Global Shopping Festival. One Platform to Rule Them All: 5 Pillars of Cainiao Business Model. Jing Chen. Instead, Cainiao, in which Alibaba owns a 47 percent stake, provides a data-driven logistics platform to about 90 Chinese and international logistics companies. Jack Ma launched Alibaba in 1999. . India's Tata group is in talks with three states to invest up to $300 million to set up a semiconductor assembly and test unit, two sources familiar with the matter said, as part of the . There are 6 other areas in which subsidiaries of Alibaba Business Model which include Aliexpress, 1688, Alimama, Alibaba Cloud, Ant Financial, and Cainiao Network. They expect to set up 650 across the country by the end of the year. * Amazon sells products directly while also serving as an intermediary for other sellers, taking a cut of the. Their business models have huge differences, but in logistics, Alibaba's Cainiao Network and JD Logistics have both thrown traditional e-commerce logistics business models away and created market-specific solutions. Cainiao Network | 68,410 followers on LinkedIn. Part of Tianchi Datamining Competition Sponsored by Cainiao. The company provides retail, internet, and technology services. All these subsidiaries work to make Alibaba a big ecosystem. Big Data Platform: To strengthen its logistic services under its "asset-light" business strategy, Alibaba invested $807 million, to increase its stake in logistics platform firm Cainiao Smart Logistics to 51 in Sep 2017 [6]. Alibaba's Cainiao Network A crucial part of our e-commerce business is to help sellers to better plan their supply chain with those data. 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On their ambition and optimism to transform their business for the better to leverage network theory and technological...