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CIW / China Retail & E-Commerce / Alibaba’s China e-commerce customers grew to 674 million in Q2 2019

Alibaba’s China e-commerce customers grew to 674 million in Q2 2019

August 15, 2019 By CIW Team

In June 2019, Alibaba’s China retail marketplaces had 755 million mobile MAUs, representing a quarterly net increase of 34 million. Annual active consumers on Alibaba’s China retail marketplaces was 674 million for the 12 months ended June 30, 2019, compared to 654 million for the 12 months ended March 31, 2019.

Alibaba revenues from core commerce reached RMB 99,544 million in Q2 2019 while JD’s revenue grew by 23% with a profit.

Alibaba Taobao in Q2 2019

Fast-growing consumer community, adding users and strengthening engagement in less developed areas. The increase in annual active consumers reflects strong user acquisition programs, such as referrals through the Alipay app and another record-breaking 6.18 Mid-Year Shopping Festival, which deepened Alibaba’s penetration into less developed areas.

During the quarter, over 70% of the increase in annual active consumers was from less developed areas, demonstrating the success of Alibaba’s initiatives to cater to a broader base of users, such as using simpler interfaces for first-time or less-frequent users.

Alibaba Tmall in Q2 2019

The leading consumer engagement and distribution platform for brands in China. Tmall continues to gain wallet share and grow faster than the sector average. Physical goods GMV, excluding unpaid orders, grew 34% year-over-year in the quarter ended June 30, 2019.

The growth in physical goods GMV was driven by both increases in the number of users and average spend, reflecting strength in fastmoving consumer goods (FMCG), apparel, consumer electronics, and home furnishing categories.

In June 2019, Alibaba’s China retail marketplaces achieved Alibaba’s largest-ever 6.18 Mid-Year Shopping Festival in scale and reach.

During the promotional period from June 1 to June 18, Tmall physical goods GMV, excluding unpaid orders, was up 38% year-over-year. The successful promotional event saw robust consumption demand that supported solid sales and greater penetration into less developed areas for brands and merchants, as over 120 brands each generated more than RMB100 million in GMV.

Alibaba New Retail Development Q2 2019

Digital transformation of brick-and-mortar retailing. Through digitizing all aspects of store-based retail operations using Alibaba’s solutions such as consumer insight technology, on-demand delivery, inventory tracking, supply chain management and mobile payment, Alibaba enables traditional retailers to deliver an unrivaled consumer experience and improve their operating efficiencies.

Alibaba’s self-owned-and-operated grocery retail chain Freshippo (known as “Hema” in Chinese) continues to achieve robust same-store sales growth, expand its footprint, optimize its stores and introduce new initiatives to improve the customer experience.

As of June 30, 2019, there were 150 self-operated Freshippo stores in China in 17 cities. Local consumer services – Food delivery business enjoys improving operating efficiency and robust GMV growth.

During the quarter, Alibaba achieved strong growth in daily on-demand GMV driven by robust order growth and increasing average order size. Alibaba will continue to focus on delivering value to restaurants and other local service merchants through digitization enabled by Alibaba’s technology, as well as extending the coverage of Alibaba’s products and services to less developed areas.

Cainiao Network

Cainiao Network has developed robust import fulfillment solutions for Tmall Global utilizing a combination of bonded warehouses in China and direct shipment from foreign countries. In June 2019, Cainiao Network’s import fulfillment solutions served over 97% of Tmall Global’s packages.

During the 6.18 Mid-Year Shopping Festival, Cainiao’s bonded warehouse facilitated the shipment of tens of millions of packages imported by Tmall Global, representing year-over-year growth of over 60%.

Strong order growth in Southeast Asia

Lazada showed solid operational improvement after strengthening its third-party marketplace business, management team and technology infrastructure. For the third consecutive quarter, Lazada achieved over 100% year-over-year order growth, reflecting Alibaba’s operational focus on user loyalty and purchase frequency.

Lazada continues to focus on maintaining strong user growth and user engagement. During the quarter, Lazada executed effective user acquisition programs with mobile DAUs doubling year-over-year.

Check out Alibaba’s performance in cloud computing and digital entertainment here.

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Filed Under: China Retail & E-Commerce Tagged With: 618, alibaba, cainiao, q2 2019, taobao, tmall

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