Okay. All right. We're entering the next session, where our CFO and our CEO will present. This will be live broadcasted. Unfortunately, this is the third boring session of the day. I need to talk about the safe harbor. For those watching, this is Ali officially welcome all of you to the 2019 Investor Day. We're here in the Xixi Hotel, very great weather, versus last year was a little tricky. Let me start with the safe harbor for everyone. Presentations and discussion during Investor Day will contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the SEC.
Any forward-looking statements that we make are based on assumptions as of today. We do not undertake any obligation to update these statements except as required under applicable law. Please also note that these presentations and discussions will contain certain financial measures that are not recognized under generally accepted accounting principles in the United States, such as adjusted EBITDA, adjusted EBITDA margin, marketplace-based core commerce adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share or ADS, and free cash flow. More information about these non-GAAP measures and reconciliation of GAAP to non-GAAP measures can be found on the filings with the SEC. Without further ado, let me introduce our CFO, Maggie Wu.
Good afternoon. It's glad to have all of you here again this year. I hope that you find previous days and this morning's presentations helpful. I asked some of my investor friends what do they want to hear from me in my presentation during Investor Day. They just, without thinking, said, "Guidance." In the eyes of some of the investors, Maggie's presentation equals to guidance. This will not be the case this year because we've already given guidance to you. Let me reiterate, our revenue of the group for fiscal 2020 going to be over RMB 500 billion. We remain that guidance unchanged. Okay. Today, I'm gonna talk about two topics, financial perspective as well as investment. Three things to cover, besides the financial updates, strategic investment. I also want to talk about the valuation framework.
Okay, under financial update, there are three things I want to discuss. First is our growth. Second, the efficiency gains. Third, how we think about invest for future. Okay. Here are some financial highlights for the last 12 months. At the end of June, our mobile MAU reached 755 million, and annual active consumer is 674 million. We've added over 200 million net adds for the AAC in the past two years, and 100 million in the past year. If you think about it, total population for China is like 1.37 billion, and it's pretty much one out of every two Chinese are buying things on our platform. Our revenue is $59.8 billion, representing 46% year-on-year. Both our core commerce and cloud computing shows very strong growth.
Other business also growing very nicely. We've generated RMB 16.8 billion adjusted EBITDA profit in the past 12 months, and RMB 15.2 billion free cash flows. These are the powder for us to further invest for longer term growth. Our robust revenue growth has outperformed all of our global technology peers. While we are growing 46%, you can see that other peers are growing at 20-ish or teens. Even though we take out the newly acquired businesses, our growth is still very strong at 37%, where are we ahead of the other peer companies. This is not only the case for past year, but also the case for the past five years. In the last five years, our revenue has grown more than seven times. Talk about profitability. We have a 30% CAGR, the adjusted EBITDA growth. This is for a whole group.
When you look at the marketplace-based core commerce business, it's even growing faster. We use that as a part of that profit to invest back to our business. In fact, historically, we have been investing one-third of our marketplace-based core commerce profit back to the business to develop the logistics, to do the globalization, to invest in local service, as well as the New Retail. For those of you who have attended our 2017 Investor Day, you might still remember that year I give guidance and also I talk about how we're going to use of our incremental profit. I said that we're going to use that money to reinvest back to the business to expand our B2C market leadership. Now let me report back to you. Okay.
In the past two years, if you look at the national statistics, which is the 22%, the blue line, China online physical goods has a 22% growth, 20-ish, right? Tmall GMV has grown over 30%. You can tell that although in this size, we are still growing faster and taking market share in that sector. In fact, we already become the driver for China consumption growth. If you look at fiscal 2019 versus 2018, China retail consumption has grown from RMB 37.1 billion to RMB 38.8 billion, which shows around RMB 1.78 billion growth. This is a net add. When you look at our Alibaba platform, we grow from RMB 4.8 billion to RMB 5.7. The growth is RMB 907 million. If you do the calculation, we are contributing to over 50% of the incremental China consumption growth.
We not only focusing on extending the user base experience on GMV growth, but also very focused on the customer loyalty. This is a slide I showed last year. Our platform, over 100 million consumers who spent over RMB 10,000 per annum, we have seen retention of 98%, very high. Okay. That 100 million number now grow into 130 million, the retention, it still stays at 98%. That tells you the consumer experience. It tells you all of these efforts we've made and the innovation we have and all of the different things we provided on the platform have actually been paid back by the recognition of the consumer. These days, I was asked a lot by the investors on how's the quality of your lower tier city consumers since 70% of new users are from the less developed areas.
Let me share with you on the cohort of the lower-tier city consumers. Longer consumers stay, higher their spendings are. If you look at the data here, for the first-year consumer, these are all for lower-tier cities. They show average RMB 2,300 per annum. For a 3-year consumer in lower-tier cities, the spending level is RMB 6,700. 5-year, RMB 10,600. We're ahead of the other peers. That's the consumption demands and power we see on our platform from the lower-tier city. We just announced that Alibaba Group takes 33% of Ant Financial. Now you should expect to see greater synergy coming from the whole, we call the whole economy, Alibaba Digital Economy. Take this Ant as example. 33% of Ele.me's new users were actually from Alipay app.
If you look at Taobao and Tmall, in the past several months, around 20% of the new users on Taobao and Tmall are actually acquired through Alipay. If you look at the consumer base, we are somewhere close to 700 million. Alipay is even bigger, and there are at least another 200 million, 300 million consumers to further penetrate. Alipay is really good at acquiring consumers offline from lower tier cities. Taobao, Tmall, Ele.me, Youku is really good at retaining these consumers. It's a perfect synergy that we could work together, don't have to spend double marketing dollars, right? We just plan out together to acquire and retain consumers. Synergy is not only coming from Ant Financial group and between Ant Financial group, but also within Alibaba Group. Let me give you an example.
Users on five of these platforms, Taobao, Youku, Gaode, AutoNavi map, Eleme, UC, they are three times more active than single platform users. Daniel will also talk about that in a little bit more detail. When you look at our 88VIP, this is our VIP members of Taobao. They show very high stickiness. Average spending per 88VIP member is about nine times of overall users. We haven't reported the number of the VIP. We'll report back to you at due course when we reach the big milestone. I've talked a lot about consumer side. When you look at the merchants, these are the customer who pay us directly, right? Our platform, the paying merchants, which is the revenue-generating merchants, their retention rate is 63%. This is for more than one year. This is a one-year retention.
You would think 63%, is that high or low? It seems a little bit low because where are those 37% going? Don't forget about we're serving these SMEs whose business is more volatile and have higher churn rate. National statistic shows that the natural churn for this group is somewhere around above 20%. You can tell that that retention rate, our platform is quite high for a merchant. While the overall China online consumption is growing 20%, and if you add in the offline, the consumption is growing like 10%, 50% of our paying merchants actually achieved over 20% year-on-year sales growth. Which means they could find additional value on this platform.
For those of you who attended our previous investor day, you might remember that the angle I would like to talk about value creation to merchants is a financial angle, which is through merchants' P&L. If you look at merchants' P&L, they have all of these items, and we have over 50 businesses right now. Each single one of them are helping to improve the merchants' P&L. Basically, we help them to increase their sales, help them to reduce their cost of entry and logistics, help them to be more efficient in distribution, brand and marketing in the IT side, and also Ant Financial is helping on the financial side of the business. Currently, we've seen 3.5 million of these paying merchants are using these services.
It includes a lot of business you're actually very familiar with, and already in my previous year presentation, I wouldn't go through one by one. Ant Financial now has 28 million active merchants using their services. Alibaba Cloud is number 1 cloud service provider in Asia and number 3 in the world. What's more important is just like our CTO said in the morning session, is that the uniqueness of our Ali Cloud service. We're not only IaaS, PaaS service, we are also DaaS and ABOS. I'll leave to Daniel to talk about the Alibaba Business Operating System later. In China, 59% of the listing companies are using Alibaba Cloud service. Grow up like a 10 percentage point from last year's 49%. Okay, let's take a look at the efficiency gains.
Every RMB 1 revenue we get, our marketing spending is coming down from RMB 0.11 to RMB 0.09 if you use a June quarter number. That is the trend actually. We are the most cost-effective platform who has the lowest consumer acquisition cost. You can compare to the other commerce company, other whatever peer company. When you look at the staff cut, right? The headcounts has been added like 19% last year, and compared to last year, and our total revenue is growing 42%. That gives you a sense of the efficiency gains in productivity. Content cost is one of the biggest costs for the DME. If you look at our spending on content costs, Fan this morning mentioned about his strategy of moving more towards building the self-production capability from just leasing, buying from outside. Our acquisition of licensed copyright decreased.
At the same time, you might think about if this decrease, your self-production might increase, right? What's your overall? Our overall content cost as a percentage of total DME revenue has come down. We haven't really disclosed the content cost absolute dollar amount, but we should be able to share with you that efficiency has been gained on the content cost. These are the three big costs. We see efficiency across the businesses, across different BUs. Overall, when you look at the whole group's profitability, it also shows quite a big improvement. You probably are very familiar with this waterfall, which I show every quarter when we do the earnings release. For example, like this June 2018, we have RMB 37 billion EBITDA generated from our marketplace-based core commerce business.
We spent RMB 4 billion to reinvest back to the local service, logistics, New Retail, et cetera, and that profit gets down to RMB 30 billion. We invest in cloud, and other new Digital Media Entertainment. It gets to RMB 27 billion. That's our adjusted EBITDA for the whole group. When you look at this year number, which is reported a month ago, that the marketplace-based core commerce adjusted EBITA went up to RMB 47 million. The overall group EBITDA was RMB 35 million, which tells you that the EBITDA profit from the core of the core, increased RMB 10 billion, the spending only increased RMB 2 billion. That gives us expanded profit. How we think about Invest for Future.
I was asked by investor so many times that, "Maggie, when are you going to stop investing in these new things, the burning businesses, the local service and DME? Why do you want to get into those? Can you just get rid of them and be more profitable?" Okay. I think it's very hard to imagine if we didn't invest into Taobao, Tmall, Ali Cloud, Alipay 10 years, 15 years ago, where we would be today. The business you've seen today actually are from the investment we made 10 years ago. We invested in DME because there is huge demands. We call it the cultural nourishment demands from our 700 million consumers on Taobao and Tmall. DME business are showing progress. They have been growing the user base and member over 40%.
We invested in this local consumer service because we want to tap into this over a trillion market. This sector consumer shows very high frequency of consumption. This business actually has grown quite well, 40% DME growth year-on-year. We invested into this international commerce retail because we talked about our 2 billion consumer target for 2036. We're very serious about it. Lazada AE plus the other part of SS, they're showing, Lazada is showing over 100% of DAU growth. We invested in Cainiao Logistics because this is just simply the infrastructure, not only for our platform, but also for the commerce of whole China. You heard Wan Ling about the China development, very good development. We have shown 100% plus growth for a lot of things. I wouldn't read out one by one. We also investing in innovation initiatives.
Amap is already become the number one map app in China. They reached over 100 million DAU. Great infrastructure for our multiple services, particularly local service. As well as the logistics. DingTalk, 200 million of the users, and also like Tmall Genie, right? We haven't really talked about that business, but that's already a huge business. It's selling over 10 million devices. This is like an Alexa type of device. That's the financial updates. This year, two months ago, I started to oversee our strategic investment function. Joe is still with me. We are asked that, what are the changes after you oversee this business? I want to talk about three things. First of all, the strategic investment, how we think about it, the themes, et cetera, and then what we emphasize and our portfolio review. Talk about the goals of M&A and investment.
These are what I steal from Joe's slide from last year. These are exactly the same, right? Number one, we want to solidify core business market position. We want to make investment to help on the globalization. We also want to invest in the technology to identify new tech trends and help our business to grow. If you look at all of these investment we made in the past months, they all fall into these three buckets. This is one thing very different between us and the other peer companies, that we don't make a financial investment. We only make strategic investment. Every single investment we make, we have a business sponsor on it. Then we kind of follow up with them on the integration. We do see greater the synergy generated from this investment. Give you some example. The first one, Lazada.
We talked about New Retail. We talked about over 400 stores being digitized and 6.5% of the online revenue being added to that business. Another example is that you've seen we made investment in Easyhome and Hongxing Meikailong. I don't know their English name. This is a very new investment, and we've already so far connected 56 malls to this digital operation system. At the same time, we're working on this same-city online, offered a local delivery and installation service for the two businesses. Lazada, we talked about, they are now already over 50 million of annual active consumer base in Southeast Asia. Their year-over-year order growth is over 120%. Another investment we made is C-SKY. That's a technology investment.
It's a semiconductor. After we made that investment, actually our Ali NPU performance has improved 10 times, and the cost has been reduced by 50%. We are not only invest but also divest, because for some of these investment who has lost the strategic value to us, we just dispose them. So far, we've disposed over 50 investments, and the total net realized gains is about RMB 18 billion. Okay. Valuation. This actually is a challenge for all of you, right? How you value this company. In the past year, I've give you a valuation framework. I want to give you updates on that. We list out all of these business we have and their growth on the revenue, on the EBITDA, on the user base, et cetera. We've also listed our peer companies. You've seen Amazon show on a lot of these categories.
Amazon is a company we respected a lot, and they also have a lot of businesses that are similar to ours. You can do the calculation by yourself. The question is that, we're such a huge business, still growing so fast, and we are positioned on every single key areas of the commerce, right? We have all of this infrastructure being built. Not only logistics, but also payment, but also the map, but also the financial service, et cetera. Many things. How you should look at this business. Today, I want to provide you with another angle. Just give a reference, right? Thinking. How to value Alibaba could be a world-class conjecture, kind of a challenge to you. Okay, our business is if you want to put it in a simple way, it's like a C business plus B business.
It's consumer-facing business and to B, and the business part of face the business. For the C business, we reported 670 million annual active consumer for the China retail business, right? If you really add those other part of business, like local service, like Youku, DME, and these things, and dedupe them, the annual active consumer turns out to be 730 million. If you add our international business, we have 860 million AAC. Okay. What's the value of that? Who would be the most comparable company to us? We think Amazon could be a good comparison. If you look at Amazon, today they have a market cap of somewhere around $900 billion. If you exclude Cloud, they're somewhere around $400 billion-$500 billion. I don't have the exact number. You know better than I do.
Let's say $400 billion to $500 billion. Their consumer base is somewhere around 400 million. If you use that market cap for their commerce business, divided their number of consumers, active consumers, you come out around $1,000 to $1,200 market cap per AAC, use our term. If you apply that to our AAC base, right, 860 million times $1,000, our consumer-faced business should worth $860 billion. This is not a most important thing. Most important thing is that our AAC is so unique. What's unique about it? Our AAC brings profits to us. To be exact, our C-faced business generated 17, I couldn't see, $17 billion plus EBITDA. Profit per AAC is $20. Think about it.
You can barely find another commerce company in this world nowadays could generate profit from their AAC, from their user base. Why can't we do that, right? When you look at all of this value we provided, and we have the lowest user acquisition costs because Taobao, Tmall, and our China retail marketplace is already the shopping destiny for whole Chinese consumers. We have so many efforts made on retaining the consumer, and we provide a broader range of services, the entertainment, the local service, to increase the ARPU, the spending of these consumers. Isn't that something really unique, special, and exciting? We have a B business. Don't forget about that. The last 12 months, B-facing business revenue is $6.8 billion.
I don't know what method you will use, but you know that the market position, all of these investment strengths we have, our Alibaba Cloud and the wholesale platform, you can do the valuation yourself. We have another part, strategic investments. This includes Ant, this includes a lot of things we've invested. I have a list of names here. This part, if you use fair value, today, they are over $83 billion. Hope this is helpful to give you another perspective. Just different angle to look at this because nobody really have the exact answer. We have our belief and strong expectation for this business growth. We're very committed to meet our longer term goals. Therefore, as investor, as you, just do your valuation. Hope my presentations helps you understand the business and financial investment. That's all from me today. Thank you.
Okay. Thank you, Maggie, for that great presentation. We will welcome our Executive Chairman and CEO, Daniel Zhang.
Good afternoon. In the previous sections, our business presidents provided you with a big picture of each of their business. I think this is not only a elaboration of the business, but also show off their personality. I think these two days, like we did in the previous years, is a good opportunity for all of you not only to understand our business, our strategy, but also know more about our people. I was told that this morning session, our , head of our entertainment business, bring you a lot of entertainment, right? It's good news. I'm sure now you have higher confidence that we have the right people in the right business. Now, it's my turn, before the closing session, to give you the big picture of Alibaba Digital Economy. As always, I want to start my presentation by mission.
Our mission actually is same as we had on day one. No change. Today, our customers are entering to a new chapter, a new journey, which is digital era. That's why today we have even higher confidence, and we have increasing clarity on how we can fulfill our mission. The answer is very simple. The answer is digital technology. Our customers need to be empowered by digital technologies to easily to do business anywhere. This is my message to the entire Alibaba team. I always said to them that after 20 years of development, actually today, in this digital era, our mission, our path to fulfill our mission is so clear and so straightforward. Let's do it. This is the big picture of Alibaba Digital Economy. In the previous years, I consistently show this map, this picture to all of you. Actually, this is my favorite map.
Just use one slide, show everything of Alibaba. When we look at this picture, we have actually, our business evolved during the past 20 years. Actually, this picture also evolved in the last 20 years. We start with core commerce. We start with wholesale. Over years, we move to retail. Today, we have many consumer-facing brands, consumer-facing business, in the retail world, including the recent acquired Kaola, and we have add one more animal in our Alibaba big zoo. Over the past few years, we invest and participate the New Retail revolution of the offline retail in China. We work with many retail partners in different sectors and help them not only digitize their business, but also improve their operation via data technology and data insight.
We not only work in the physical goods sector, we moving to other sectors, such as local services and Digital Media and Entertainment. When we look at the evolvement of our business, but we never change one thing, which is we view all these consumer-facing business as one single integrated business instead of these are separate consumer business because we share the same user base. We share the entire customer population in Alibaba ecosystem. We want each our business provide different consumption category, different consumption opportunities to meet the increasing demand of the customers and even create their new demand for our customers. When we look at the infrastructure, the horizontal layers, the horizontal pillars we show in this slide. Logistics, financial and payment, Alibaba marketing platform. Compared to previous years, no change.
This year, we add one more layer in this picture, which is AMAP, our map and navigation services. AMAP today is the number 1 business application, map service application for users. I think all of you can understand why I put this here. It is because today, this map service is not only relevant to individual users, but highly relevant to many location-based services, to enterprises. Today we are going to 5G and going to IoT era. I think going forward, this AMAP infrastructure, this map and navigation service as an infrastructure is super important for future Alibaba Cloud Intelligence, Alibaba Cloud Intelligence platform, which includes our cloud infrastructure, our IoT PaaS platform, our data platform, and our mobility applications, play a very critical role in the entire Alibaba Digital Economy.
Because of this support, all the data, all the personal ID, all the enterprise ID, are highly integrated. When we look at this picture, I have to emphasize once again, as I did in many years, data is the lifeblood of this Alibaba Digital Economy. Is a core of this big picture. Very many business applications, very many business cases, we generate real-time data. Because of the data computing capability, we can create the value from the real-time data generated from various business, and fill this value back to each of the business, even go beyond, so that we build a super closed loop data cycle to form this Digital Economy. You may ask that in Alibaba, you have so many business, even with one big picture, how can I understand even in a more efficient way?
I will say, this time, I just show you that actually in Alibaba, if we forget about each name of this business, we just focus on two flywheels, which is consumer-facing strategy and the businesses. The other is enterprise-facing strategy and the business. Let me start with consumer-facing strategy first. We have three drivers to grow our consumer-facing businesses. First, user growth. Second, category expansion. As I said, we do not view local service, we do not view entertainment as separate business. Instead, we view them as expansion of consumption categories. The third driver is globalization. In the past few years, we continue the rapid growth of our user base. As of June 13, our AAC increased to 674 million and a net add about 98 million in the past one year. We are very happy with this result.
On the international market front of view, we also have a very good start. As of June 30, we have 130 million AAC, which we think is a good starting point for our long globalization journey. If you look at the customer base we have today, 85% of the people from developed areas. We have very high penetration in the metro city areas. On the other side, we still see a high potential in many less developed areas, where we only have 40% penetration. We will continue to invest and grow our user base, especially in the less developed areas. Based on a strategy of differentiated product strategies. When we look at the substance of the product supply, rather than look at the business which supply from which business, what we can see is here, I like to categorize them into 5 types.
We have branded products from our brand partners via our Tmall platform. We have many manufacturers working with us in Taobao on these OEM products, but still sell through a platform model. Today, we are working very hard and with many farmers, with many wholesalers in origins, to sell agricultural products through our digital platform to the people living in urban cities. We have our Tmall Global, in the future, together with Kaola, to have more imported products directly from other markets. As part of the very amazing Taobao platform, which is long-tail, a very, very unique and long-tail products, which meet the niche demand of the customers. We want to match the right product supply with the right user segment to grow and meet the demand of our customers.
At the same time, we have dynamic consumer interface, consumer communities, consumer scenarios to offer our customers the fun of discovery, very different digital features. For example, live streaming. On the way here, I didn't get a chance to look at the live streaming of this conference, but I spent some time on our live streaming in Taobao to see a lady to sell her dress, and a very famous KOL on our platform. Today is another record-breaking day for her. We add people, product, community together. We want to serve our customers better. Just now, we only talk about our China retail marketplace, who cover the physical goods. Today, we have other categories in local services, in DME, in Digital Media and Entertainment. If we compare the overlap of the user base of these individual consumption scenario, actually we see huge opportunity.
Over the 674 million AAC in China in Taobao and Tmall, only 25% of them are the users of Koubei and Ele.me, of the local services. Only 12 of these Taobao/Tmall user, AAC, are the subscribers for Youku. Going forward, our team will work hard, try to penetrate as much as possible the existing user base in Taobao and Tmall, and convert them into a local service user and into a DME user, DME subscriber. On the other hand, we also see very good synergies from because of these new categories, new services we provide on the platform, which enhance our users' engagement and stickiness to the entire Alibaba ecosystem. If we aggregate all these consumer business together, in China, we have unique AAC of 730 million. 730 million in China, and don't forget about Alipay and Ant Financial.
We just announced a good news to all of you, I think with the joint efforts between Ali AJH team and Alipay team, today Alipay has 900 million annual active user in China. If we add all this together, how about the size of the populations of Alibaba Digital Economy in China? Let me give you the answer. It's 960 million. This is the entire user base, customer base we have in China for Alibaba Digital Economy. Now, let me talk a little bit about globalization. We adopt a multi-brand strategies in globalization, in international markets. For both wholesale and the retail businesses. Today, we have a couple of business in international markets. We have Lazada. I think Pierre did a good job and show you for the first time how he think about Lazada, how we doing Lazada.
Lazada today cover six countries in Southeast Asia and enjoy very robust user growth and show very strong user engagement. We have local to local business in Lazada in Southeast Asia, which is local seller to local buyer, but also we have very robust China to Southeast Asia supply. Today, we are also start to work on the cross-border intra-ASEAN market. For example, motoring products from Indo, from Malaysia, to other countries. The second business we have in international market is AliExpress, which start from the China cross-border export to the world. Over time, we start to acquire more and more local sellers, for example, from Europe, from Italy, from Spain, to sell their products through our platform to other markets. We have Daraz in South Asia, which cover couple of interesting countries, Bangladesh, Pakistan, so on and so forth, which also have a total population over 400 million.
We are very happy to incubate and to work with the founder of a very interesting business, Trendyol, which is in Turkey. He start with a vertical apparel e-commerce platform. Today, it's already evolved to a European supply hub for the apparel products. That's what we have in retail marketplaces, in retail world, in the international market. We have our alibaba.com, actually, which is the first business in Alibaba big family, starting from 20 years ago, which is a wholesale platform, international wholesale platform to help the Chinese SMEs sell to the world. Actually today, we have many SMEs from other market. From Indo, from Japan, from Brazil. They are finding trading opportunities via this platform in the world. This is about commerce landscape, the commerce picture we have in international market. Together with the commerce footprints, we are working very hard on the logistics network.
We are in the process of building a global fulfillment delivery network, with the combined efforts of Cainiao, of Lazada, of Trendyol, of Daraz, of all these business. Payment. In the international market, payment penetration is so critical for us to grow the online shopping. Our Alipay have already worked with many local partners in different markets to develop the local e-wallet. Online shopping is not the only payment use case, but very important use case, also for this payment penetration. At the same time, our team, together with partners, working closely with many offline, brick motor stores, payment use cases to promote this e-wallet. We add commerce, logistic, payment together and form a one integrated picture of our international business map. We will continue to grow our international business.
As I said, I strongly believe that this is a long journey, but we have a good start with 130 million AAC already. We will continue to grow our user base and, again, like what we did in China, to expand the consumption category, to have people more engaged and more stick with our platform. As I said before, in China for today, for the entire Alibaba Group, we have a unique AAC of 730 million, if we aggregate all the consumer-facing business together. We have 130 million AAC outside China. This is where we are today. 860 million global annual active user in Alibaba Group. Next one is about New Retail. In recent years, we make continuous efforts in New Retail. Via this effort, we want to expand the addressable market of Alibaba.
We are trying to help the entire retail consumption in China, which the size of this is 38 trillion RMB, to go digital. We strongly believe in this digital era, there is no distinction between online and offline. Online and offline cannot be distinguished by webpage or location. Actually, instead, they are distinguished by, do they digitalize their business or capture the business data or not? That's our strong view. We work with many retail partners in different sectors, starting with helping them to digitalize their existing business, then empower them with data technology to create the value from the data insights back and invest back to their existing business and to help them to grow. We have our new town, like a Hema, and at the same time, we are still working with many existing retailers in each of the sectors.
Starting from the shopping mall model, the online Tmall and offline Tmall, shopping mall model integrate together. The consumer electronics, home improvements, and restaurants, and the farmers. Finally, our LST provide a new digital opportunity for the millions of mom-and-pop stores in China, across China. As I said, we cannot distinguish online and offline just by webpage and location. Today, we see a highly integrated operation, online and offline. If the offline store, their orders, their products, their product offerings, their payment, their customers, their in-store traffics are digitalized, then actually you generate data same as you have operation on a website, on a mobile app. Today, what we do via our New Retail efforts is trying to help people to digitalize their customer base across the channel, in omni-channel, and manage their customers in omni-channel.
At the same time, because of the digitalized customer behavior, we have a real-time insights about the customer needs, that we can help our merchants to quickly respond the change in customer needs, also help them to improve their retail operations. This is what we do in New Retail. Before we finish this consumer-facing strategy, I want to share with you a very interesting phenomenon. If you read this slide carefully, you will realize that we are approaching to the status of living at Alibaba, which we shared with you many years ago. We said, if we look at Alibaba long journey, we start with meet at Alibaba, work at Alibaba. We are going to live at Alibaba, we are very happy to see that we are approaching to this.
We just show you the top five most frequent used app in Alibaba Digital Economy. You see that if people use five apps, then every month they spend 27 days with us. I hope in near term, we can reach 30 days a month. Okay. Now let's move to the other very important main Alibaba Group growth flywheel, 2B enterprise-facing strategy. When we talk about Alibaba Group's enterprise-facing strategy, we still have to think about what we do with our consumers. As I said, we build a consumer strategy. We build a strong consumer platform. We serve and grow our consumer base, and meet their needs. The key point is that as a platform, how we fulfill, meet their needs, meet our customer needs, is not our own effort. Instead, we work with our sellers, work with our partners.
We help them to sell the products, render their services to our mutual customers. online sales and distribution actually is the starting point of our enterprise-facing strategy. over time, in our China retail marketplaces, after many years' efforts, we start to roll out our service to many areas, to digital marketing, to channel management, to even data-driven product innovation. Actually today, I'm not sure whether you know or not, we have very famous Tmall Hey Box, which is a new IP in Tmall platform. All the local multinational brands want to work with us, not only to launch new product on our platform, but also to incubate and to develop new products via the insight we share with them from Tmall platform. over time, we built a life cycle management of customers and also the life cycle management of products.
All these activities are driven by data technology. Via these efforts, we are in the process of digitalization of the entire value chain of commerce. We realize that actually what we do is not only a marketplace, only to serve the consumers. If we look at this from enterprise perspective, actually we are rendering a business as a service. In order to improve the operating efficiency, to better utilize the data generated from this digital platform, from this digital business, we invest a lot in the past 10 years on the technology, on the data capability, and on the cloud infrastructure. We build all this for our own development, for the development of the Alibaba commerce ecosystem.
Over years, we realize actually this data capability, this cloud infrastructure, is not only relevant to Alibaba, not only relevant the third party's business on Alibaba, but also are highly relevant to all the business who want to achieve a successful digital transformation. That's why today we are thinking about how can we move this together with technology and commerce ecosystem to build a new model. Before we move to the new model, let's look at what happened on the tech side in Alibaba. This is a classic tech picture. Very simple, but very straightforward. I think all the world share the same picture. When people talk about cloud, people start with IaaS, talk about PaaS and the SaaS.
Because of Alibaba's Digital Economy, e-commerce, and digital commerce ecosystem, we invest a lot on the data capability as Jeff Zhang, our CTO and President of Alibaba Cloud Intelligence shared with you this morning. We strongly believe that data capability is the core of Alibaba Cloud Intelligence. Of course, we work with the partners in SaaS ecosystem. Today, we are in the process of marriage these two, Alibaba commerce ecosystem and Cloud Infrastructure, Alibaba Cloud Intelligence together. We strongly believe that this marriage will bring Alibaba a very unique value proposition, and we name this marriage as Alibaba Business Operating System. Today, I define this methodology together with my team. I said, going forward, for Alibaba Cloud, for Alibaba Business Operating System, it's not only about us PaaS and the SaaS, it's about us PaaS, this real Cloud IT infrastructure, plus the data platform and data as a service.
Most importantly, I think we are so unique in the world is that we also provide business as a service. Each of our retail businesses in different sectors actually play a role of business as a service. We start this journey by retail because we have such a strong retail marketplaces in China. We start with retail business as a service. When we work with many brand companies, retailers today, to help them to go to digital, it's not only about can we provide you the virtual server services? Can you provide you a cloud-based storage? Can we provide you this Cloud IT infrastructure? Instead, we help them to build a data middle platform. We help them to apply all of these technologies into the real business applications through our Alibaba retail marketplaces.
This retail business as a service is a starting point of our ABOS, Alibaba Business Operating System. As you can imagine, this also applicable to many other industries in finance, in financial services, in logistics, in transportation, local services, and DME. For Alibaba, we want to provide the holistic data-driven solutions, data infra, data platform, and a business applications. In the sectors, we have strong business application. We have strong business platform. Of course, we are very, very happy to work with third parties. In other areas where we don't have business applications. Let me just give you example how we do this. We talked a lot about retail. Let's use another example in other category. Here, Xixi Hotel. Xixi Hotel is very beautiful view. West Lake, right?
I hope on top of this meeting, you have flexible time to go along the lakeside, and you can experience the real beauty of Hangzhou, of this city. Why I talk about this destination, this West Lake, is because today, we are working with the local partners to digitalize this West Lake, digitalize the travel business. How to manage, how to monitor on a real-time basis the traffic around the West Lake, the boat on the West Lake. Can we give people, give tourists a real-time information about which car parks you should go when you drive here? Rather than people drive to the destination and found that car parks is full. Because today, for all of the map services, people can only find the nearest car parks, but they don't know the real-time occupancy of the car parks.
By this way, we try to develop applications together with many partners to do these smart things. I call this smart travel, a smart destination. On top of the ABOS, Alibaba Business Operating System, which we want to cover many sectors. In ABOS, on top of these business applications, logistics still play a very important role. As our Daniel President shared with you, we are making great progress in grow our logistics network. We have already digitalized the parcel delivery network in China. We built this last mile drop-off and pick-up network. We built a crowdsourced parcel delivery system, which we believe very important to be the user interface, in logistics business. We are working on build a hybrid fulfill and delivery network. We do have some hub and spoke fulfillment network.
Many of you, I think, I believe, are familiar with this model. Why I like to use the word hybrid is because we add our on-demand delivery network, driven by our food delivery business, to this hybrid network, so that we can do not only the same-day delivery, next-day delivery, but also we can do the on-demand delivery, and we can do a complete whole cold chain across the country. On the international front, we are working to build an international fulfillment delivery network. Same as logistics, we also believe that payment and financial services are very important pillar in Alibaba Business Operating System. When you look at this picture, you may understand the core relationship, the core synergies between Alibaba Group and Ant Financial. Alibaba Group create more and more business application, payment use cases, which enable people to pay.
Ant Financial, especially the digital wallet, when they well penetrated through online, through offline in many payment use cases, people also give the business applications many new user referral. On the other side, with the development of the digital business, we create opportunities for consumer credits. We create opportunity for micro-lending. Now in September, let me give you one example. If you ask many sellers on our platform, now they are applying for the working capital loan to prepare for upcoming November 11. It's a real ecosystem in this digital landscape. Now, I want to put all I talked together, show you the whole picture of Alibaba Business Operating System.
The four pillars are consumer-driven, business-driven, life cycle management of the products, life cycle management of the consumers, and supported by the finance and payment pillar, supported by the logistic pillar and also, of course, by the cloud infrastructure. Once again, this cloud is not only the cloud IT, is not only about server, is not about storage, is not about the CDN. It's far more than that. It's about cloud and intelligence, and the ability not only to generate data. When we talk about digital world, I will always say there are two key things. The first thing is the ability to generate data so that we can talk about the big data.
We always have to emphasize the other very important thing, is if you have more and more data, then it's so important to have the ability to compute the data, to create a high value but with lower cost and on a real-time. That's how we position our ABOS in this digital era. Okay. Before conclude my presentation, I want to bring you some fun. This is an overview, a track record of Alibaba's innovation in the last 20 years. You see, we are very active. We are so busy. Every year, we generate new stuff or we acquire new stuff. Never stop. We never stop innovation because we believe that to enrich this ecosystem, the key thing is about innovation.
I always said to many partners, and recently, this quote always used by many medias, I said, "If we don't think about kill our existing business, then we must be killed by someone else." That's the driver for us to continue our innovation. I think in the next 20 years and in the long journey to the 102 years, we will continue to do that. Finally, let me re-emphasize our goal, which I share with entire Alibaba family in our 20 years anniversary party. We want to live 102 years. We still have 82 years to go. We need a long-term goal and we need a near-term goal. Let's start with next five years. We set a near-term goal.
We want to achieve annual active consumer over 1 billion, at least 1 billion annual active consumers in China, which contribute at least RMB 10 trillion GMV in China. We have very famous long-term goal, which is by 2036, we want to serve 2 billion consumers around the world, create 100 million jobs, and help 10 million SMEs to be profitable. That's the end of my presentation. Thank you.