Chinese ecommerce giant, Alibaba has posted its strongest revenue growth for the past four quarters. Growth in their international division has picked up strongly, however it is China has that driven the group’s success. Whilst bricks and mortar retailers are notoriously struggling in the challenging Chinese market, ecommerce sales are continuing to grow in the country. Chinese consumer’s spending on FMCG grew just 2% in the first quarter of 2016, compared to a year ago; whereas spending on consumer goods via ecommerce channels has risen 48.1%.
Alibaba’s success has been put down to 3 main factors:
Whilst there is no denying Alibaba’s success in China, the company have not seen the same success internationally, and have now adopted a more selective approach to their expansion.