Alibaba 2019 Q1 sales up by 51%YoY

Date : 16 May 2019

Alibaba Group announced financial results for the quarter ended 31st March 2019.

Strong performance with growing user base

The group reported strong performance for the quarter. Daniel Zhang, Chief Executive Officer of Alibaba Group commented that “Alibaba is becoming synonymous with everyday consumption in China, growing our base to 654 million annual active consumers and extending our penetration in less-developed cities. Our cloud and data technology and tremendous traction in New Retail have enabled us to continuously transform the way businesses operate in China and other emerging markets, which will contribute to our long-term growth.”

Top line figures for the quarter ended 31st March 2019 are:

  • Revenue: Up by +51%YoY, reaching CYN93.5bn (US$13.9bn)
  • Core commerce (Taobao & Tmall): sales reached CYN78.9bn (US$11.8bn) in 2019 Q1, up by +54%YoY
  • Annual active users: reached 654 million, an increase of 18 million from the 12-month period ended 31st December 2018
  • Mobile monthly active users (MAUs): increased by 22 million over December 2018, reaching 721 million in March 2019

Highlights of the group’s business and strategic updates are summarised below.

Taobao offers new shopping experience

  • A new Taobao app interface was launched in fiscal year 2019, which segments shoppers based on their shopping behaviour and then provides them with personalised recommendations
  • The new interface includes curated posts, videos and live broadcasts. The overall result is better user engagement, higher purchase conversion and more annual active users

Tmall establishes itself as a platform of choice for brands

  • Tmall paid physical goods gross merchandise value (GMV) up 33% YoY, driven by strong performance of fast-moving consumer goods (FMCG), apparel, electronics and home furnishing categories by identifying new consumption tends
  • Making use of its large data set and wide customer reach, the retailer provides brands with marketing solutions such as pre-launch campaign along the full purchase journey from discovery to purchase

New Retail transforming brick-and-mortar retailing

  • Digitised 470 Sun Art stores by end of March 2019, allowing customers to shop via the Taobao app and get goods delivered through on-demand delivery platform Ele.me
  • Freshippo (Hema) continued to achieve robust same-store sales growth and expand network, reaching 135 stores in China

Gaining market share in lower tier cities

  • Acquired on-demand delivery platform Ele.me and integrated it with service guide platform Koubei in 2018 to provide local services
  •  The local services are integrated with the Alibaba ecosystem, allowing it penetrating into less developed cities. Around 30% Ele.me platform’s total orders are from Alipay and Taobao apps

Building foundation for long-term international growth

  • Cross-boarder and international retail business continue to grow. Up to date, Lazada and AliExpress have a total of more than 120 million annual active users
  • In 2018, Lazada scaled back direct sales of low margin categories such as electronics to be better positioned for less capital-intensive long-term growth
  • Lazada continues to invest in logistics as delivery speed and convenience are key competitive advantages in the Southeast Asian market

 

 

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