Core Viewpoint - Morgan Stanley believes Alibaba is building an "integrated e-commerce ecosystem" to improve profitability in its food delivery and flash purchase businesses through four key drivers: user structure optimization, order structure adjustment, fulfillment efficiency enhancement, and monetization capability improvement [1][3]. Group 1: Key Drivers for Profitability Improvement - User structure optimization focuses on enhancing the retention rate and lifecycle value of repeat customers, supported by strong new user retention [5]. - Order structure optimization aims to reduce the GMV share of low-margin categories like milk tea by introducing more Tmall brand merchants to the flash purchase platform [6][7]. - Fulfillment efficiency enhancement leverages a network of 2 million delivery riders and high urban density to optimize delivery costs [8]. - Monetization capability improvement seeks to attract a large user base to the flash purchase platform, capitalizing on rapidly growing traffic for commercialization [9][10]. Group 2: "Taobao Big Member System" - The "Taobao Big Member System" is a foundational loyalty program that integrates multiple domestic businesses, allowing users to accumulate "Taoqi values" through cross-scenario consumption and interactions [11]. - Achieving a high membership level is key to unlocking significant discounts and exclusive privileges, enabling Alibaba to flexibly adjust investment intensity across different businesses [12]. - The overall growth strategy of the ecosystem allows Alibaba to maintain flexibility in competition, even if individual businesses face investment pressures [13]. Group 3: Gaode Map's Role - Gaode Map, with 170 million daily active users, serves as a natural entry point into China's local service market [14]. - The investment intensity for Gaode's local service strategy is expected to be lower than that for food delivery and flash purchase businesses, with monetization opportunities including advertising, coupons, and ride-hailing services [15]. - Gaode's user base and technological advantages provide Alibaba with a differentiated competitive edge in the local life service sector, potentially becoming a new growth engine [16]. Group 4: Organizational Changes - Alibaba's management emphasizes enhancing execution through organizational streamlining, reducing the number of partners by nearly half, and fostering entrepreneurial leadership talent [17][18]. - The reduction in partner numbers reflects Alibaba's management philosophy of "simplifying complexity," aiming to improve decision-making efficiency and execution capability [18]. - These organizational changes support Alibaba's strategic execution consistency and efficiency in building the "integrated e-commerce ecosystem" [19].