Chinese e-commerce giant Alibaba Group announced its financial results for the quarter ended December 31st, 2019. The company experienced robust growth across its business in the past quarter.
Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group, comments: “Our digital economy reached new heights with another record 11.11 Global Shopping Festival for our merchants and partners. Continued investment in user engagement, especially through social commerce content, contributed to our strong gains in annual active consumers. As a result of its rapid growth, our cloud computing services for the first time generated revenue of over RMB10 billion in a single quarter. In response to the coronavirus, we mobilized Alibaba ecosystem’s powerful forces of commerce and technology to fully support the fight against the outbreak, ensure supply of daily necessities for our communities and introduced practical relief measures for our merchants. No matter past, present or future, we remain true to our mission and we will support our merchants to overcome this challenging time together.”
In November 2019, Alibaba Group listed on the main board of the Hong Kong Stock Exchange. It delivered a strong result for the final quarter of the year. Top-line revenue growth of 38% year-over-year was realised, a total of RMB161,465 (USD 23,193 million). Maggie Wu, Chief Financial Officer of Alibaba Group, adds: “Looking forward, we will remain dedicated to investing in digital infrastructure and services, supporting our customers and partners across the Alibaba Digital Economy, especially during the challenging time.” The marketplace platform saw an increase in annual active consumers on its Chinese retail marketplaces. A total of 711 million visitors, an increase of 18 million, visited the site in a period of 12 months, ending December 31st, 2019. Over 60% of new annual active consumers are residents from less developed areas.
Strong growth for Taobao and Tmall
One of Alibaba’s platforms, Taobao, recorded a strong year. The platform aims at content innovation and personalised recommendations to service existing customers and attract new ones. The feature “Taobao Live”, where merchants and key influencers use live-broadcast to market to their fans and customers, has become one of the fastest-growing and effective selling tools of the marketplace. In December 2019, turnover generated from Taobao Live and the number of active users grew 100% year-over-year.
Tmall, holding a leadership position in the Chinese market, grows as an engagement and distribution platform of choice for brands in China. Online physical goods turnover increased by 24% compared to 2018, with the product category of fast-moving consumer goods and consumer electronics as fastest-growing categories. The platform sees growth in order as well as a higher purchase frequency due to consumer segmentation initiatives.
Singles day results
Global Shopping festival, also known as Singles Day, which is yearly held on the 11th of November, again broke records. It generated RMB268.4 billion (US$38.4 billion) through Alipay on the retail marketplace platforms. This is an increase of 26% compared to the 2018 results. Over 200,000 brands, including 22,000 international brands, participated in this year’s event, among which 15 brands each generated turnover of over RMB1 billion (US$143.0 million) and 299 brands each generated over RMB100 million (US$14.3 million). Consumer demand from less developed areas remained robust, accounting for 54% of the GMV during the festival.