Alibaba’s annual active consumers increased by 25 million and reached 601 million in the 12 months ended September 30, 2018. Alibaba delivered robust revenue growth of 54% for quarter Q3 2018. Taobao mobile app saw a total of 666 million MAUs.
Performance Highlights for Q3 2018
- Alibaba’s revenue was RMB85,148 million (US$12,398 million), an increase of 54% year-over-year.
- Revenue from core commerce increased 56% year-over-year to RMB72,475 million (US$10,553 million).
- Revenue from cloud computing increased 90% year-over-year to RMB5,667 million (US$825 million).
- Revenue from digital media and entertainment increased 24% year-over-year to RMB5,940 million (US$865 million).
- Revenue from innovation initiatives and others increased 20% year-over-year to RMB1,066 million (US$155 million).
- Annual active consumers on Alibaba’s China retail marketplaces reached 601 million, an increase of 25 million from the 12-month period ended June 30, 2018
- Mobile MAUs on China retail marketplaces reached 666 million in September 2018, an increase of 32 million over June 2018
- Net income attributable to ordinary shareholders was RMB20,033 million (US$2,917 million), and net income was RMB18,241 million (US$2,656 million), representing a year-on-year increase of 13% and 5%, respectively.
FT suggested five things to watch: global ambitions, higher revenues, cloud computing, Ant Financial, and Jack Ma.
Alibaba Marketplaces Highlights in Q3 2018
Alibaba rolled out a new user interface on the Taobao App, with the aim to further customize the shopping experience by segmenting users based on their shopping behavior, and including more recommendation feeds to enhance product and content discovery.
In turn, the new interface enhances the ability of merchants to target, engage and retain consumers.
In September 2018, the Taobao app continued to experience strong user growth, with a quarterly net increase of 32 million MAUs on Alibaba’s China retail marketplaces to a total of 666 million MAUs. Annual active consumers increased 25 million to 601 million for the 12 months ended September 30, 2018.
Excluding unpaid orders, physical goods GMV on Tmall grew 30% year-over-year in the quarter ended September 30, 2018. The strong growth was driven by continuous improvement in conversion rates and increases in traffic, reflecting strength in the fast-moving consumer goods (FMCG), home furnishings and apparel categories.
During the quarter, brands such as Qeelin (a member of Kering Group), Stella McCartney, Theory and Sergio Rossi launched flagship stores on Tmall and joined the Tmall Luxury Pavilion, Alibaba’s customized premium shopping experience for consumers.
In October, Alibaba announced a partnership with Swiss luxury group Richemont, the parent company of luxury brands including Cartier, to launch a China joint venture with Richemont-owned Yoox Net-a-Porter (YNAP), the world’s leading online retailer for luxury goods. This partnership will bring Chinese consumers unprecedented access to the world’s leading luxury brands.
Under the partnership, YNAP and Alibaba will establish a joint venture to launch two mobile apps for YNAP’s NET-A-PORTER and MR PORTER multi-brand online stores for consumers in China. In addition, the JV will launch NET-A-PORTER and MR PORTER online stores on the Tmall Luxury Pavilion. The JV will focus on serving consumers in China and will also serve Chinese consumers traveling abroad.
As of September 30, 2018, there were 77 Alibaba’s self-operated Hema grocery/restaurant stores in China, primarily located in tier 1 and tier 2 cities. Consumers are fully embracing Hema’s 30-minute on-demand delivery service that delivers fresh foods and groceries for their busy urban lifestyle.
In October 2018, Alibaba combined the operation of food delivery service Ele.me and online restaurant guide business Koubei under a single management team.
Ele.me served over 167 million annual active consumers in 676 cities in China for the 12 months ended June 30, 2018. Together, Ele.me and Koubei served 3.5 million registered merchants as of June 30, 2018. The combination of Ele.me and Koubei will accelerate the integration of consumer insights and restaurant management with enhanced operating efficiency.
Revenue from Alibaba’s international commerce retail business reached RMB4,464 million (US$650 million) in the quarter ended September 30, 2018, representing 55% year-on-year growth.
Sales of China’s fast-moving consumer goods grew by 6.3% year-on-year in Q3 2018. E-commerce saw sales growing by 43.6% in Q3 2018…read more »