By Francesco Pagano, Senior Partner, Jakala
Ms. Cindy Chow (CC) is a Senior Director of Finance at Alibaba, the largest e-commerce platform in China (operates also through platforms like Taobao and Tmall). She is also the Executive Director and CEO of The Alibaba Entrepreneurs Fund, which focuses on investing in AI-driven startups across various sectors. The fund has invested over US $ 90 million in over 75 startups and attracted over US $ 2.8 billion in co-investment funding. We (FP) sat down with her during Viva Tech in Paris, to discuss about the future of commerce and retail, in light of what AI does and can do. Here is our exchange.
Q: Who are you and what do you do for a living?
My name is Cindy Chow, and I am currently the Executive Director and Chief Executive Officer of the Alibaba Hong Kong Entrepreneurs Fund (AEF). AEF is a mission-driven initiative launched by Alibaba Group in 2015, to revitalize the development of innovation and technology. AEF’s mission is to help Hong Kong entrepreneurs and young people realize their dreams and visions for a new Hong Kong, which is vibrant and engaged regionally and globally. As part of its investment program, AEF provides entrepreneurs with investment capital and strategic guidance to help them grow their businesses and penetrate the mainland Chinese and global markets, by utilizing Alibaba’s Ecosystem.
Q: What’s the future of e-commerce, and commerce/retail in general, given the impact that AI will have on operations, workforce, marketing?
Generative AI not only optimizes existing workflows but also unlocks novel monetization strategies and revenue streams. For instance, AI-powered predictive recommendation engines enhance e-commerce platforms’ customer lifetime value (LTV) through hyper-personalized conversions, directly improving gross merchandise value (GMV) and repeat purchase ratios.
As a venture capitalist, I focus on how companies or startups can leverage AI to significantly enhance productivity and develop new application scenarios to become industry disruptors. To capture the values that AI is bringing, we launched the US $ 150 million AEF NextGen Fund last year, which targets AI-driven startups with proven product-market fit. AI is transforming global business, and with a global investment mandate, our fund is well positioned to benefit from the opportunities in various sectors where AI adoption is accelerating.
Q: Also, are there any other exponential technologies that you are looking at, besides AI?
AI applications remain our primary focus. While foundational models provide the base, real value is created at the application layer – where entrepreneurs can develop targeted solutions for specific industries and use cases. This is where we see the most immediate opportunities for disruption and scalable impact.
Q: How are you dealing with the new context of trade and import fees, started in the US? Any tips and resilience ideas to share with the retail world?
In navigating today’s challenging economic environment, we strongly recommend companies to prioritize two fundamental strategies:
First, relentlessly refine their business model to ensure both scalability and sustainable unit economics – this discipline separates resilient companies from the rest.
Second, pursue market diversification with strategic precision, whether through Greater Bay Area integration, the opening up of the Middle East marketing, or capturing the Southeast Asia’s growth opportunities.
China may not be in the news as often as other regions and enterprises based in EMEA and especially in the US. The Chinese are diving into AI, as a way to know fans and please them with ultra personalized offering and swift, smooth customer service. We tend to look West to follow the progress on AI. East is where surprises may come, with or despite more reasonable investments and less loud product shows and releases.
