I Visited Alibaba, The $100 Billion Chinese Internet Company Where 24,000 People Are Making Marissa Mayer Look Good
Marissa Mayer took over Yahoo in July 2012.
![I Visited Alibaba, The $100 Billion Chinese Internet Company Where 24,000 People Are Making Marissa Mayer Look Good](/_next/image?url=https%3A%2F%2Fstaticbiassets.in%2Fthumb%2Fmsid-26484943%2Cwidth-700%2Cheight-525%2Cimgsize-684846%2Fmarissa-mayer-took-over-yahoo-in-july-2012-.jpg&w=3840&q=75)
Since then, the stock has exploded. But, really, much of the credit goes to Alibaba – a Yahoo investment in China that has performed exceptionally well.
![Since then, the stock has exploded. But, really, much of the credit goes to Alibaba – a Yahoo investment in China that has performed exceptionally well.](https://staticbiassets.in/thumb/msid-26484945,width-700,height-525,imgsize-71510/since-then-the-stock-has-exploded-but-really-much-of-the-credit-goes-to-alibaba-a-yahoo-investment-in-china-that-has-performed-exceptionally-well-.jpg)
But what's Alibaba?
![But what](https://staticbiassets.in/thumb/msid-26484948,width-700,height-525,imgsize-273420/but-whats-alibaba.jpg)
Alibaba was founded in 1999 by this guy, Jack Ma.
![Alibaba was founded in 1999 by this guy, Jack Ma.](https://staticbiassets.in/thumb/msid-26484949,width-700,height-525,imgsize-108864/alibaba-was-founded-in-1999-by-this-guy-jack-ma-.jpg)
Alibaba is based in Hangzhou, a two hour flight from my base in Beijing
![Alibaba is based in Hangzhou, a two hour flight from my base in Beijing](https://staticbiassets.in/thumb/msid-26484951,width-700,height-525,imgsize-186665/alibaba-is-based-in-hangzhou-a-two-hour-flight-from-my-base-in-beijing.jpg)
In China, Hangzhou is best known as a tourist destination, thanks to a beautiful lake called West Lake.
![In China, Hangzhou is best known as a tourist destination, thanks to a beautiful lake called West Lake.](https://staticbiassets.in/thumb/msid-26484952,width-700,height-525,imgsize-177900/in-china-hangzhou-is-best-known-as-a-tourist-destination-thanks-to-a-beautiful-lake-called-west-lake-.jpg)
I flew to Hangzhou on a Monday morning.
![I flew to Hangzhou on a Monday morning.](https://staticbiassets.in/thumb/msid-26484953,width-700,height-525,imgsize-182216/i-flew-to-hangzhou-on-a-monday-morning-.jpg)
Hangzhou has three million people, making it a small city for China. On the drive from the airport to the campus, I saw a homes like this one.
![Hangzhou has three million people, making it a small city for China. On the drive from the airport to the campus, I saw a homes like this one.](https://staticbiassets.in/thumb/msid-26484956,width-700,height-525,imgsize-169895/hangzhou-has-three-million-people-making-it-a-small-city-for-china-on-the-drive-from-the-airport-to-the-campus-i-saw-a-homes-like-this-one-.jpg)
After a 25 minute drive, I arrived on campus. Check out the cool parking structures out front.
![After a 25 minute drive, I arrived on campus. Check out the cool parking structures out front.](https://staticbiassets.in/thumb/msid-26484957,width-700,height-525,imgsize-230048/after-a-25-minute-drive-i-arrived-on-campus-check-out-the-cool-parking-structures-out-front-.jpg)
Just like in Silicon Valley, lots of employees come to work on bikes.
![Just like in Silicon Valley, lots of employees come to work on bikes.](https://staticbiassets.in/thumb/msid-26484960,width-700,height-525,imgsize-248847/just-like-in-silicon-valley-lots-of-employees-come-to-work-on-bikes-.jpg)
As we entered the campus through a shadowed passageway, I wondered what it would look like…
![As we entered the campus through a shadowed passageway, I wondered what it would look like…](https://staticbiassets.in/thumb/msid-26484965,width-700,height-525,imgsize-187278/as-we-entered-the-campus-through-a-shadowed-passageway-i-wondered-what-it-would-look-like.jpg)
…it turned out to be a huge, massive complex.
![…it turned out to be a huge, massive complex.](https://staticbiassets.in/thumb/msid-26484968,width-700,height-525,imgsize-243927/it-turned-out-to-be-a-huge-massive-complex-.jpg)
There were little trucks ferrying things about.
![There were little trucks ferrying things about.](https://staticbiassets.in/thumb/msid-26484969,width-700,height-525,imgsize-274199/there-were-little-trucks-ferrying-things-about-.jpg)
There were little trams for moving people around, too.
![There were little trams for moving people around, too.](https://staticbiassets.in/thumb/msid-26484975,width-700,height-525,imgsize-219384/there-were-little-trams-for-moving-people-around-too-.jpg)
The place was similar to Yahoo's Sunnyvale campus or the Googleplex in Mountain View, except…
![The place was similar to Yahoo](https://staticbiassets.in/thumb/msid-26484977,width-700,height-525,imgsize-270625/the-place-was-similar-to-yahoos-sunnyvale-campus-or-the-googleplex-in-mountain-view-except.jpg)
…everything felt new…
![…everything felt new…](https://staticbiassets.in/thumb/msid-26484981,width-700,height-525,imgsize-185063/everything-felt-new.jpg)
…or still under construction.
![…or still under construction.](https://staticbiassets.in/thumb/msid-26484989,width-700,height-525,imgsize-250202/or-still-under-construction-.jpg)
Clearly, the place is growing fast.
![Clearly, the place is growing fast.](https://staticbiassets.in/thumb/msid-26484992,width-700,height-525,imgsize-276587/clearly-the-place-is-growing-fast-.jpg)
In the middle of the campus, there is an estuary with walking paths through it.
![In the middle of the campus, there is an estuary with walking paths through it.](https://staticbiassets.in/thumb/msid-26484998,width-700,height-525,imgsize-286505/in-the-middle-of-the-campus-there-is-an-estuary-with-walking-paths-through-it-.jpg)
We took this one.
![We took this one.](https://staticbiassets.in/thumb/msid-26485003,width-700,height-525,imgsize-153478/we-took-this-one-.jpg)
In the middle of November, the temperature was in the 70s.
![In the middle of November, the temperature was in the 70s.](https://staticbiassets.in/thumb/msid-26485010,width-700,height-525,imgsize-473527/in-the-middle-of-november-the-temperature-was-in-the-70s-.jpg)
Just like Google with its Android statues, Alibaba has its own corporate mascots all over campus.
![Just like Google with its Android statues, Alibaba has its own corporate mascots all over campus.](https://staticbiassets.in/thumb/msid-26485013,width-700,height-525,imgsize-347875/just-like-google-with-its-android-statues-alibaba-has-its-own-corporate-mascots-all-over-campus-.jpg)
Here's one.
![Here](https://staticbiassets.in/thumb/msid-26485015,width-700,height-525,imgsize-384099/heres-one-.jpg)
Here's another.
![Here](https://staticbiassets.in/thumb/msid-26485016,width-700,height-525,imgsize-356142/heres-another-.jpg)
When we finally entered a building, we found this Lambourgini replica, built entirely from parts bought on Taobao.
![When we finally entered a building, we found this Lambourgini replica, built entirely from parts bought on Taobao.](https://staticbiassets.in/thumb/msid-26485017,width-700,height-525,imgsize-229723/when-we-finally-entered-a-building-we-found-this-lambourgini-replica-built-entirely-from-parts-bought-on-taobao-.jpg)
My guide took me to a top floor to get a view of the whole campus.
![My guide took me to a top floor to get a view of the whole campus.](https://staticbiassets.in/thumb/msid-26485018,width-700,height-525,imgsize-237589/my-guide-took-me-to-a-top-floor-to-get-a-view-of-the-whole-campus-.jpg)
24,000 people work for Alibaba – more than Yahoo and Facebook combined.
![24,000 people work for Alibaba – more than Yahoo and Facebook combined.](https://staticbiassets.in/thumb/msid-26485019,width-700,height-525,imgsize-339450/24000-people-work-for-alibaba-more-than-yahoo-and-facebook-combined-.jpg)
We went to a room with this big array of monitors, giving live updates on traffic
![We went to a room with this big array of monitors, giving live updates on traffic](https://staticbiassets.in/thumb/msid-26485021,width-700,height-525,imgsize-217202/we-went-to-a-room-with-this-big-array-of-monitors-giving-live-updates-on-traffic.jpg)
Obviously, I don't know what most of the monitors were showing.
![Obviously, I don](https://staticbiassets.in/thumb/msid-26485022,width-700,height-525,imgsize-182621/obviously-i-dont-know-what-most-of-the-monitors-were-showing-.jpg)
Here's a closer look at one, which seemed to show where in China usage was coming from.
![Here](https://staticbiassets.in/thumb/msid-26485023,width-700,height-525,imgsize-156988/heres-a-closer-look-at-one-which-seemed-to-show-where-in-china-usage-was-coming-from-.jpg)
These are some of the brands using Tmall to sell goods
![These are some of the brands using Tmall to sell goods](https://staticbiassets.in/thumb/msid-26485024,width-700,height-525,imgsize-190508/these-are-some-of-the-brands-using-tmall-to-sell-goods.jpg)
We left the building, and walked through this pleasant courtyard.
![We left the building, and walked through this pleasant courtyard.](https://staticbiassets.in/thumb/msid-26485026,width-700,height-525,imgsize-374087/we-left-the-building-and-walked-through-this-pleasant-courtyard-.jpg)
Then we went into the middle building on this picture.
![Then we went into the middle building on this picture.](https://staticbiassets.in/thumb/msid-26485027,width-700,height-525,imgsize-269980/then-we-went-into-the-middle-building-on-this-picture-.jpg)
The floors are so shiny because there was a guy constantly mopping them.
![The floors are so shiny because there was a guy constantly mopping them.](https://staticbiassets.in/thumb/msid-26485028,width-700,height-525,imgsize-322135/the-floors-are-so-shiny-because-there-was-a-guy-constantly-mopping-them-.jpg)
Inside this building, there was a very popular Starbucks
![Inside this building, there was a very popular Starbucks](https://staticbiassets.in/thumb/msid-26485029,width-700,height-525,imgsize-229529/inside-this-building-there-was-a-very-popular-starbucks.jpg)
It looked like any Starbucks in the world.
![It looked like any Starbucks in the world.](https://staticbiassets.in/thumb/msid-26485030,width-700,height-525,imgsize-202243/it-looked-like-any-starbucks-in-the-world-.jpg)
There was also a gift shop…
![There was also a gift shop…](https://staticbiassets.in/thumb/msid-26485032,width-700,height-525,imgsize-211744/there-was-also-a-gift-shop.jpg)
…and this florist.
![…and this florist.](https://staticbiassets.in/thumb/msid-26485033,width-700,height-525,imgsize-361564/and-this-florist-.jpg)
Finally, we saw some Alibaba employees at work. The place was quiet.
![Finally, we saw some Alibaba employees at work. The place was quiet.](https://staticbiassets.in/thumb/msid-26485035,width-700,height-525,imgsize-235736/finally-we-saw-some-alibaba-employees-at-work-the-place-was-quiet-.jpg)
On the walls, there were photos from company events – like the annual wedding ceremony held at Alibaba HQ…
![On the walls, there were photos from company events – like the annual wedding ceremony held at Alibaba HQ…](https://staticbiassets.in/thumb/msid-26485036,width-700,height-525,imgsize-177411/on-the-walls-there-were-photos-from-company-events-like-the-annual-wedding-ceremony-held-at-alibaba-hq.jpg)
…or scenes from the company's annual employee talent show, held at a local stadium.
![…or scenes from the company](https://staticbiassets.in/thumb/msid-26485037,width-700,height-525,imgsize-157656/or-scenes-from-the-companys-annual-employee-talent-show-held-at-a-local-stadium-.jpg)
Big company-wide events are much more common in China than the US.
![Big company-wide events are much more common in China than the US.](https://staticbiassets.in/thumb/msid-26485038,width-700,height-525,imgsize-190224/big-company-wide-events-are-much-more-common-in-china-than-the-us-.jpg)
Here's another shot from the talent show. It's a big deal.
![Here](https://staticbiassets.in/thumb/msid-26485039,width-700,height-525,imgsize-177424/heres-another-shot-from-the-talent-show-its-a-big-deal-.jpg)
Employees rehearse for weeks.
![Employees rehearse for weeks.](https://staticbiassets.in/thumb/msid-26485041,width-700,height-525,imgsize-161659/employees-rehearse-for-weeks-.jpg)
This is a photo from when Jack Ma stepped down from the CEO job earlier this year.
![This is a photo from when Jack Ma stepped down from the CEO job earlier this year.](https://staticbiassets.in/thumb/msid-26485043,width-700,height-525,imgsize-174718/this-is-a-photo-from-when-jack-ma-stepped-down-from-the-ceo-job-earlier-this-year-.jpg)
Finally, I sat with a few executives and learned about the company.
![Finally, I sat with a few executives and learned about the company.](https://staticbiassets.in/thumb/msid-26485045,width-700,height-525,imgsize-289428/finally-i-sat-with-a-few-executives-and-learned-about-the-company-.jpg)
Alibaba's main businesses are Taobao, a site where almost anyone can buy and sell goods…
![Alibaba](https://staticbiassets.in/thumb/msid-26485046,width-700,height-525,imgsize-268916/alibabas-main-businesses-are-taobao-a-site-where-almost-anyone-can-buy-and-sell-goods.jpg)
…and Tmall, where offline brands can set up stores to sell to Chinese consumers.
![…and Tmall, where offline brands can set up stores to sell to Chinese consumers.](https://staticbiassets.in/thumb/msid-26485047,width-700,height-525,imgsize-331901/and-tmall-where-offline-brands-can-set-up-stores-to-sell-to-chinese-consumers-.jpg)
There are two secrets to its success. The first is that Taobao is entirely free to use. There are no fees for buyers or sellers.
![There are two secrets to its success. The first is that Taobao is entirely free to use. There are no fees for buyers or sellers.](https://staticbiassets.in/thumb/msid-26485048,width-700,height-525,imgsize-211687/there-are-two-secrets-to-its-success-the-first-is-that-taobao-is-entirely-free-to-use-there-are-no-fees-for-buyers-or-sellers-.jpg)
The second is that Alibaba blocks China's most popular search engine, Baidu, from searching Taobao and Tmall
![The second is that Alibaba blocks China](https://staticbiassets.in/thumb/msid-26485049,width-700,height-525,imgsize-218140/the-second-is-that-alibaba-blocks-chinas-most-popular-search-engine-baidu-from-searching-taobao-and-tmall.jpg)
That means if Chinese consumers want to shop, they start with searches on Taobao and Tmall.
![That means if Chinese consumers want to shop, they start with searches on Taobao and Tmall.](https://staticbiassets.in/thumb/msid-26485051,width-700,height-525,imgsize-60059/that-means-if-chinese-consumers-want-to-shop-they-start-with-searches-on-taobao-and-tmall-.jpg)
Then, Alibaba monetizes those eyeballs, by selling search ads on Taobao and Tmall.
![Then, Alibaba monetizes those eyeballs, by selling search ads on Taobao and Tmall.](https://staticbiassets.in/thumb/msid-26485053,width-700,height-525,imgsize-250308/then-alibaba-monetizes-those-eyeballs-by-selling-search-ads-on-taobao-and-tmall-.jpg)
In a way, Taobao/Tmall is more like Google than eBay or Amazon. (Google makes all its money from commercial searches.)
![In a way, Taobao/Tmall is more like Google than eBay or Amazon. (Google makes all its money from commercial searches.)](https://staticbiassets.in/thumb/msid-26485054,width-700,height-525,imgsize-197322/tmall-is-more-like-google-than-ebay-or-amazon-google-makes-all-its-money-from-commercial-searches-.jpg)
Alibaba's biggest vulnerability is mobile. Until recently, it was developing mostly for the Web. Now it's building its own mobile OS and all products are mobile first.
![Alibaba](https://staticbiassets.in/thumb/msid-26485055,width-700,height-525,imgsize-128291/alibabas-biggest-vulnerability-is-mobile-until-recently-it-was-developing-mostly-for-the-web-now-its-building-its-own-mobile-os-and-all-products-are-mobile-first-.jpg)
That was it for my tour of Alibaba. This was my last view of the place.
![That was it for my tour of Alibaba. This was my last view of the place.](https://staticbiassets.in/thumb/msid-26485056,width-700,height-525,imgsize-196097/that-was-it-for-my-tour-of-alibaba-this-was-my-last-view-of-the-place-.jpg)
Now read about how I got to China
![Now read about how I got to China](https://staticbiassets.in/thumb/msid-26485057,width-700,height-525,imgsize-163634/now-read-about-how-i-got-to-china.jpg)
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