Alibaba Records 14% Increase In Sales Driven By Global Markets
Alibaba, the largest online retailer in China, reported 14% quarterly revenue growth on Thursday, August 10, as its online marketplace Taobao and Tmall Group performed well.
CEO Daniel Zhang commented during the results call: “We reported a very good quarter. … Our overseas digital commerce business and we are happy to see that our strategies after a couple of quarters efforts as we see a strong sign of success. And we strongly believe this is a sustainable trend.”
With its headquarters in Hangzhou, China, the company reported a 14% increase in revenue year over year to RMB234 billion ($32.3 billion) in the three months ending June 30. Taobao and Tmall Group’s two most significant operations had a 12% increase in revenue to RMB114.95 billion ($16 billion).
The industry titan in eCommerce declared earlier this summer that it intended to introduce its Tmall website in Europe.
Daily active users on the Taobao app for online shopping increased by over 7% in July after rising by 6.5% year over year in June. The company’s drive into international markets also paid off; according to the supplemental investor’s report, sales from global commerce retail increased 60% to RMB17.14 billion ($2.4 billion) in the June quarter.
The business has been concentrating on cloud computing as well. said Zhang,
“Cloud is relevant to all the industries. If you ask me which industries we prioritize, I would say, actually, first of all, I think the internet companies, I think because all the internet companies are digital native companies and they’re supposed to be — grow their business on the cloud.”
The company’s cloud division reported a 4% increase in revenue to RMB25.12 billion. They claimed to have observed “strong demand” in the cloud computing industry for services linked to training AI models.
In the June quarter, Alibaba also reported significant growth for its local services, including investments in enhancing the user experience on the Tmall supermarket and the expansion of half-day delivery services to 20 locations across China. Local service group revenues increased by 30%.
Additionally, Alibaba intends to seek an IPO for its eCommerce division in the United States.
