John Maltman on the Alibaba Quarterly Report
The world’s largest eCommerce business, Alibaba, announced its revenue for this year’s quarter ending on September 30 2018, to be £9,440,386,007 (RMB 85,148 million), a staggering increase of 54% from last year. As pure players come under the spotlight questioning and challenging the way traditional brick-and-mortar stores sell, we’ve been asking what can European eCommerce companies learn from the Chinese online retail behemoth? Here from the eCommerce thought leaders about what enables Alibaba to generate year-on-year growth…
John Maltman, CEO, E Fundamentals
“Alibaba has an incredibly interesting model as they deliver two great services; a strong shopper experience to Chinese customers and highly effective marketing and route to market services for brand owners. Their success has come from evolving their services according to shopper insight and helping brands create personalised strategies and in some cases, unique products tailored to the needs of Chinese shoppers.
There are some lessons that could be adopted in Europe. Increasingly brands are going to start looking at the cost of building a business with a retailer and they’ll want to invest with the one who will deliver the most effective services. Companies like Alibaba are winning because they’ve become synonymous with international trade and offer a flexible service to shoppers and suppliers that generate good returns and enables companies to test and learn quickly and cost effectively. They are becoming the place where brands want to do business.”
Jack Ma, Founder & Chairman, Alibaba Group
In his final letter to shareholders as the Chairman of Alibaba, Jack Ma, warned that the global economy is “in a state of turmoil”, however spoke optimistically about the opportunities going forward, saying, “When it gets difficult to do business, it is precisely the time to fulfill our mission to make it easy to do business anywhere,” he wrote in his final letter as the chairman of Alibaba.
Daniel Zhang, Chief Executive Officer of Alibaba Group
“Alibaba had another strong quarter of rapid growth. In particular, annual active consumers increased by 25 million to reach 601 million in the 12 months ended September 30, 2018. We generated synergies across our businesses, demonstrating the power of the Alibaba digital economy, which will be further showcased during our upcoming 11.11 Global Shopping Festival. Under our New Retail strategy, we are realizing our vision to enable renewed growth for traditional retailers through digitizing their store-based operations, powered by Alibaba’s technology and consumer insights.”
Maggie Wu, Chief Financial Officer of Alibaba Group
“We outpaced all industry peers by again delivering robust revenue growth of 54% this quarter. While the growth of our overall profitability this quarter has been tempered by significant investments in local services, logistics, entertainment and international expansion, our core marketplace business continued to show strong profit and cash flow growth, which enables us to re-invest into strategic areas and our technology.”
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