Chinese e-commerce giant Alibaba Group revealed that their second-quarter net profit grew more than seven times to $3.7bn whilst its revenue increased 32% to $2.49bn. The company’s figures were eagerly awaited due to the arising concerns about the health of China’s economy. China’s GDP rose 6.9% in the three months to September, the country’s slowest quarterly expansion of its economy since the first quarter of 2009. Alibaba’s revenue growth is higher than 28% registered in the first quarter, but less than the 53.7% growth post in the year-earlier period. Their Gross Merchandise Volume (GMV) on their retail marketplaces rose 28% to $112bn, slower than the 34% growth seen in the previous quarter and the 48% growth registered in the same period last year. They are “winning in mobile”, as 62% of the total was mobile GMV.
Alibaba is expanding their omnichannel retailing, partnering with many brick-and-mortar stores where consumers can order goods online ahead of Alibaba’s Singles’ Day on Nov. 11, a major discounting and publicity blitz, and pick up their orders offline. Singles’ Day is now the biggest shopping event of the year, overshadowing Black Friday and Cyber Monday in terms of dollars.
They are also expanding their offices in London and opening an office in Milan, stressing the importance of globalisation.