1) Ok, Chinese tech watercooler news - On 6th March, the Alibaba intranet got a ~5,000-word post from an employee who quit the next day.

His blistering and funny critique of Alibaba’s culture failings has been causing a ruckus. Zhihu, Mai Mai and intranets have been blowing up
2) Fractions are appearing inside Alibaba, taking different sides of the argument (there is a donkey fraction).

It is a really funny, post and here are some choice excerpts:
3) "When we joined Alibaba, we all had expectations. No matter what we thought about Alibaba afterwards. On the outside, we all had some admiration for the company. This caused my first confusion as I entered Alibaba. Such a sizable company, but why the constant anxiety?"
4) "My confusion in Alibaba is that for a company that publicise its authenticity every day, I’ve never heard a word of truth. I think it's amusing. I don't know whether the management is too old or too lazy to think. Why can't we talk about these things openly and fairly?"
5) "but we have to talk about helping you grow, helping you progress and even about transferring talents to society?
In short, you do 361. We don't object; we can’t object, right? Either we stay and accept, or we leave. I think everything is fine.
6) "The company just needs to come and say we’re looking for workaholics, and we’re an anxious company. Our goal is not to make employees comfortable because comfort will make the company lag behind. Our ideal is to surpass Amazon to become the fifth-largest economy globally"
7) "You may wonder, what the difference is? From your perspective, you’re deceiving me in order to exploit me, and I’m exploiting you. Aren't we all exploiting each other? There is still a big difference."
8) "Maybe most of the senior management is post-70s or post-80s and they don’t understand the post-90s and the coming 00s. These younger people grew up under the wind of free culture. We don't like this kind of official and polite manner. "
9) "You assume I am a donkey pulling the grinding mill. You whip me to keep me going. I think it is normal. No one thinks it is abnormal. I am a donkey. You are the master. I want to be lazy, that’s normal for a donkey. You don't want me to be lazy, that’s normal for a human."
10) "You keep me fed, so you are allowed to whip me to force me to work harder. That’s understandable. But the question is, you can’t whip me while asking me to love you at the same time right?"
11) "Twenty years ago, Ali was just starting. Then, Ali was an actual start-up. It faced all the risk of start-up companies such as not being able to pay wages. When the company started, it must have calculated the outflows for this month, the next month ad infinitum. "
12) "During then Ali recruited the type of person who would still work if they didn’t get paid for half a year. The type of person who Mr Ma refers to as ‘It’s ok if you don't approve of Mr Ma, but you must approve of what Mr Ma wants to do. You must approve of Alibaba.’"
13) "But the times have changed, the Qing Dynasty has died.

Ali has been developing for 20 years, and China's economy has been developing for 20 years. At that time, the people who worked for you had starving elders. Now 80% of people who work for you have well fed parents."
14)"Now if you ask a person, come work for a great company, they have a very strong culture and can help you reach your potential. But they wouldn’t be paying you any wages for half a year. Do you think you’ll get any response?"
15)"So 20 years ago, you bought a donkey. You must make sure that the donkey loves you. Because you can't make sure the donkey will be getting a stable meal, so if the donkey doesn't love you when you can’t feed the donkey, it’ll run away. "
16) "But 20 years later, you buy a donkey, all you need to do is feed it. All the donkeys in the market are smart, and there are many markets. It’ll go where there’s good food. All these places give the donkey the same food and the same whipping."
17) " But the difference is that you are forcing people to say they love you. The other places are straight forward, you don’t have to love me and I don’t have to love you. Just work for me and I’ll provide the meal. You are donkeys. Which mode is Alibaba doing?"
The rest of the post gets even more incredible as the guy goes on a diatribe against compensation, benefits and Jack Ma's obsession with elephants over his own employees.

Premium subscribers get first dibs on my translation lillianli.substack.com/p/premium-spec…

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More from @lillianmli

10 Mar
1) AliCloud is finally profitable 12 years after its inception. Posting topline rev of $1.78bn and EBITDA of $3.7m in Q3 2020. In comparison, it took AWS 20 years to reach profitability.

However, interesting times ahead - some facts and thoughts on the state of cloud in China:
2) Don't get me wrong, Alicloud is doing well. Gartner rated them as being the global top 3 for IaaS in market share in 2020.

It just took them billions of investment to get there and unclear how much more billions in the future Image
3) Alicloud will invest an additional RMB 200 billion in the next three years. Tencent will invest RMB 500 billion in the next five years to build multiple million-level servers. Baidu will scale to 5 million units in 10 years, equivalent to an investment of RMB 300 billion
Read 10 tweets
8 Mar
1) Let's talk about the story of Youzan, an e-commerce back-end SaaS platform for omnichannel retail, implied market cap of $12.2Bn.

Their founder is legendary, high-school dropout turned artist turned Alipay PM turned founder.

Imo it's the Chinese Salesforce, not Shopify
2) So while Youzan's founder is called Ning Zhu, he goes by the moniker White Crow (白鸦 aka Bai Ya). In homage to a parable where a white crow chooses freedom and starving to death over a lifetime of cushy cage-dwelling.
3) He grew up in the poorest county in Henan. After dropping out of secondary school, he worked a series of odd jobs, including peddling clothes and construction work but eventually returned to education and got a degree in art and design.
Read 15 tweets
5 Mar
1) Let's talk about my framing for e-commerce product strategy.

It answers why in Chinese tech there is a fanatic fixation on internet traffic. Why every consumer app become a super-app.

Ubiquitous in Chinese tech but also prevalent in Facebook, Shopify and Google' strategy.
2) Every player is always working on owning the awareness-to-fulfilment funnel (or customer journey). This is a descriptive product strategy that builds on a foundational ethos of "owning the user".
3) Relative to western consumer tech companies, who tend to focus on “serving a function” as their core mission, Chinese companies tend to focus on “owning the user” as their core mission (though the initial wedge into the consumer is always through a function.
Read 12 tweets
24 Jan
1) Let's talk about how to think about applying a successful Chinese tech trend to your tech ecosystem.

Let's deconstruct the elements of what made livestreaming take off in China, and what is easily replicable and what isn't
2) So I've discussed before that I view livestreaming as both an entertainment product as well as a distribution channel. So when people are asking whether livestreaming can take off, they are really asking two questions about monetisation.
3) - Will people tip livestreamers?
- Will people buy things from a livestream?

The answer to both these questions involves understanding the technological, institutional and cultural underpinnings of Chinese tech. Yeah, bummer we gotta know all that.
Read 20 tweets
23 Jan
1) Let's talk about the stealthiest player in the short-video war and the implication on Bilibili, Kuaishou and Bytedance as well as the longer direction of travel for western social media in the future.

I'm talking about WeChat video
2) WeChat Video was launched silently last January and broke through 200m DAU by June 2020 and is estimated by third parties to be at 350m DAU currently.

By comparison Kuaishou took 5 years to reach 300m DAU in June 2020.
3) WeChat's video feature is a response to other short videos platforms (Douyin / TikTok being the biggest one) and though it had a late start, it has some distinct advantages.

An existing collection of brands and influencers who built their house on WeChat official accounts
Read 9 tweets
22 Jan
1) Let’s talk about the three things I found interesting and weird about the Chinese VC ecosystem

- Corporate Venture Capital regimes supreme
- Much shorter fund time horizons
- LPs are mostly government
1) Corporate VCs (CVC) are the corporate venture arm of established firms. In the west they often get a bad name since they’ve had a history of blocking sales of startup to their competitors or applying a corporate mindset to venture.
2) Google venture seems to be the exception to the rule, but often western founders typically want a CVC to follow in a round. When they are leading its a bad signal.

The opposite is true (at least by rule of thumb) in China. Startups think of CVCs as credible
Read 12 tweets

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