Taobao 2009 gross margin was 43% in revenue this year 590 million U.S. dollars

International investment banker who once predicted in 2009, Taobao will be publicly listed in 2010. As the most striking C2C/B2C platform Taobao high-profile in recent years an ambitious expansion and management of its market for the industry has not stopped speculation.

For Taobao listing plans, and Taobao relevant person in charge yesterday to the “First Financial Daily” The reply is still: “There is no listing plan.”

The reporters also learned that Alibaba’s Chairman Jack Ma in early March at an internal meeting made it clear that Taobao has not yet listed on the timetable for the time being. The more accurate interpretation is that Taobao will certainly be listed, but there is no timetable.

Goldman Sachs in the March 4 of the analysis was also well-behaved to correct last year’s expectations. “Before we think might be Taobao listed in 2010, but now we believe that in 2011 or after the public offering is more likely.” Goldman Sachs in its report explained, “Taobao will seek to consolidate it with other than fast – increase the competitive position of online retailers, including Dangdang, Jingdong Mall and the new egg net. Specifically, the light of the recent Amazon in the United States a lesson for the relatively more successful eBay, Taobao will choose to further investment to improve service and Logistics to provide consumers with experiences similar to the Amazon. ”

According to Goldman Sachs estimates that in 2009 Taobao 200 billion yuan in trading volume, 0.7% of the total amount of online transactions into the total revenue, while its gross margins in 2009 at 43%.

Divergent views and management evasive in the outside world, between the rapid growth of online trading Taobao Is it just the total amount of buyers and sellers of “Carnival”? The deal’s “Carnival” when can we truly become the investor “Feast”?

Volume of transactions within two years, or super-eBay

EBay was once used as a replica of Taobao, as of the third quarter of 2009, China’s online retail market accounts for 83% of market share, the proportion is even surpassed eBay in the United States market share. “Free fight” breakthrough after eBay eBay Ex few years, the size of encroaching Taobao eBay business globally.

This is not Alibaba in its e-commerce ecosystem bluff, but it is a triumph and a true offensive.

Well-known U.S. investment bank Piper Jaffray on March 2 issued a research report that with the online trading platform for the C2C/B2C Taobao online trading in 2009 totaled more than 200 billion yuan (about 290 billion U.S. dollars) over the previous year, an increase of 101%. And eBay in 2009 the total amount of transactions (including automobile dealers) to 57 billion U.S. dollars, down 4%, excluding motor vehicles amounted to 48 billion U.S. dollars, and in 2008 was flat.

Alibaba Group International vice president of Corporate Relations John Spelich as early as January this year, has said that the Group expects Taobao transaction volume in 2010 will double to 4000 million yuan, is expected to surpass eBay.

“Catch up with eBay” – once the rhetoric now seems to have become a well-thought-Taobao is also determined to a goal.

Investment bank Goldman Sachs, in its March 4 in a research report predicts that even if the 2011 and 2012, respectively, only 50% and 33% of the annual growth rate, Taobao’s transaction total will be in 2011 600 billion yuan (about 87.9 billion U.S. dollars), 2012, 800 billion yuan (about 117.2 billion U.S. dollars). Piper Jaffray analyst is even more bluntly in the report, in accordance with the current growth momentum, Taobao’s online transaction total “will in 2011 overtake eBay”.

Profit Projections

With eBay stores to require customers to pay fees, merchandise Login fees, transaction services fees and so different from the traditional profit model, Taobao localization advantage is that they know that people are reluctant in the absence of any protection under the pre-payment, so that from the Taobao first day is not commodity products log on fees, the risk will be reduced to zero by the seller. EBay and the 100 test in other markets, the charge mode of bad mood was defeated early in China.

2008 Happy Valley Taobao enclosure at the end of “money-burning” strategy, the first clear understanding of their profit model – a limited offer different kinds of small ads, such as merchants on the brand, Banner advertising, Pay per click with the turnover effect advertising, as well as to the seller to provide value-added services, such as store management, and decorated tools. Another revenue now comes from the growing retail stores (B2C) transactions, fees.

Still insist on C2C free shop and commodity trading to always keep amazing Taobao’s market size and growth rate. Search network in the customer’s trading platform to launch products like Baidu and Google keyword bid ranking model, to become Taobao another way of making money.

Piper Jaffray estimated in the report Taobao 90% of the total revenue comes from search engine advertising fee model, while the value-added services accounted for only 10%.

Jefferies & Company investment bank (Jefferies & Co.) Analysts had pointed out that the value-added services and B2C charges in the future will become more important.

Such a large amount of online transactions, but also whether the amount of revenue for Taobao and profit?

Goldman Sachs analyst James Mitchell has previously been estimated, Taobao able to in 2009 0.7% of the total amount of online transactions into the total income, the income of some 200 million U.S. dollars.

In the March 4 date of the report, Goldman Sachs is forecasting that the transaction volume of the total revenue conversion rate (Take rate) will continue to increase to 1.50% in 2012, Taobao’s total revenue in 2010 will be 590 million U.S. dollars, while the 2011 and 2012 and even reached 1.05 billion U.S. dollars respectively, and 17.6 billion dollars.

Goldman Sachs also calculated in the report out of Taobao’s gross margin in 2009 was about 43%, the gross margin is seen Taobao profit situation. Piper Jaffray also estimated, Taobao’s total revenue in 2009 was about 180 million U.S. dollars in 2011, or will increase to 570 million U.S. dollars.

And these figures Taobao and Alibaba Group, had not been made public before, and do not want to disclose.

Taobao real “Feast” is not really started.

Taobao IPO in Hong Kong, the news may be in early 2009 will be wind and water, the major media competing to inquire about, the management is evasive.

In investment circles, including the Royal Bank of Scotland (RBS), Goldman Sachs, Jefferies & Company (Jefferies & Co.), Piper Jaffray and a number of investment bank analysts in 2009, analysis of many articles report that Taobao’s publicly traded will be the general trend. Goldman Sachs analyst James Mitchell in the June 2009 report of the valuation analysis conducted on the Taobao, Taobao he thought worth 8.7 billion U.S. dollars. The Piper Jaffray analysts said in a March 2 this year, the report also estimated that the market value will be Taobao 8.5 billion to 11.5 billion U.S. dollars between.

March 8, Taobao launched a joint major brands and consumer rights protection product counterfeiting activities, this can be seen as an important step in paving the way for its listing. To improve the brand and consumers in the eyes of public confidence, but also to improve the trust of potential investors an important step.