The Christmas period has proven to be fruitful for Alibaba, with the tech business reporting a 41 percent increase in revenue YOY.
According to Alibaba’s quarterly sales results, the Chinese business has outperformed its global technology peers thanks to its significant growth in active users. The company says it has added 33 million monthly active users to its platforms over the quarter, bringing its total to 699 million. Annual active consumers also reportedly grew by 35 million from the previous quarter, finishing the year at 636 million. It’s believed this growth is a result of successful user acquisition programs, such as referrals made through the Alipay App.
The business has also noted that 70 percent of its annual active consumer growth has come from cities rated as third-tier and lower, as mobile connectivity and e-commerce continues to grow in these regions.
Revenue was also a strong point for Alibaba, with total revenue up 41 percent YOY landing on a total of RMB 117.3 billion (US$17.1 billion). The company’s marketplace performance was equally as strong, with its core commerce adjusted EBITA growing 31 percent YOY to RMB 54.3 billion (US$7.9 billion). From extending its core marketplace leadership for Taobao and Tmall, core commerce in this segment grew 40 percent YOY with 28 percent YOY growth for customer management revenue.
Source: Alibaba Group
The company also noted its business highlights from the quarter, claiming Tmall has become the engagement and distribution platform of choice for global brands, as Valentino, Ermenegildo Zegna and a host of other luxury brands all set up flagship Tmall stores over the quarter. The expansion of its proprietary grocery retail chain, Freshippo (formerly known as Hema) expanded over the quarter to 109 self-operated stores. Alibaba highlighted that the chain has also continued to achieve robust same-store sales growth but didn’t specify exact figures.
This profitable quarter doesn’t come as a surprise, as the business has been reporting strong earnings left, right and centre. In November, the business held its much-anticipated Global Shopping event, with the company reportedly increasing its sales for the day by 27 percent, compared to 2017’s event.
“Today we witnessed the strength and rise of China’s consumption economy and consumers’ continued pursuit to upgrade their everyday lifestyles,” Daniel Zhang, CEO of Alibaba Group said at the time.
During the sale event, Alibaba racked up US$30.8 billion of gross merchandise volume sales in a single day.
Never miss our best stories. Sign up for Power Retail’s free weekly newsletter and find our daily stories on Facebook, Twitter, LinkedIn, and Instagram.