In September 2019, Alibaba’s China retail marketplaces had 785 million mobile MAUs, representing a quarterly net increase of 30 million. Annual active consumers on Alibaba’s China retail marketplaces reached 693 million for the 12 months ended September 30, 2019, compared to 674 million for the 12 months ended June 30, 2019.
Taobao in Q3 2019
Taobao continues to redefine the shopping experience through content innovation, product enrichment and personalized recommendation. By leveraging data technology and business innovation, Taobao has incubated new community-based and content-driven features.
As of the end of the fiscal year 2019, Idle Fish (a.k.a. Xianyu), Alibaba’s active C2C community and marketplace, had 1.3 million interest-based communities and 60 million active sellers of long-tail products including second-hand, recycled, refurbished and for-rent products.
In the six months ended September 30, 2019, Taobao app’s DAU growth accelerated. The increase in annual active consumers on Alibaba’s China Retail marketplaces also reflected Alibaba’s continuing penetration into both developed and less developed areas in China.
Tmall in Q3 2019
In the fiscal year 2019, over 50% of Tmall merchants leveraged live streaming to engage with their customers. Each of these features generated over RMB100 billion in annual GMV in the fiscal year 2019.
Tmall physical goods GMV, excluding unpaid orders, grew 26% year-over-year in the quarter ended September 30, 2019, with strong growth in fast-moving consumer goods (FMCG) and consumer electronics.
Alibaba’s consumer segmentation initiatives have been well received by users, as evidenced by accelerating order growth from higher purchase frequency.
This year, the festival will focus on catalyzing demand for new brands and products, as well as supporting the ongoing consumption upgrade across China.
Over 200,000 brands, including more than 22,000 brands on Tmall Global, will participate in this event, with millions of new products available to consumers. Read more about this year’s Double 11 here.
Cross-border e-commerce platform Kaola
In September 2019, Alibaba acquired NetEase’s import e-commerce platform Kaola. Alibaba see great opportunities in user, revenue and cost synergies for the combined Tmall Global and Kaola businesses.
China’s import consumption market is still at an early growth stage, and the two businesses will be able to provide greater choices and better value for consumers. The Tmall Global and Kaola platforms have relatively low consumer overlap, and Alibaba plan for the Kaola app to continue to operate independently while integrating the technology, consumer insight, and middle office functions to achieve optimization.
As part of Alibaba, Kaola will benefit from advanced data technology infrastructure and an unrivaled consumer scale.
As of June 30, 2019, annual active users of Alipay and its local e-wallet partners increased to approximately 1.2 billion globally, of which about 900 million were users from China.
Alibaba New Retail
Alibaba’s owned-and-operated grocery retail chain Freshippo (known as “Hema” in Chinese) continues to achieve robust same-store sales growth, implement multi-format retail strategies and introduce new initiatives to improve user experience and customer loyalty.
In order to support its rapid growth, Alibaba Hema Fresh strengthened its direct procurement of agricultural products and built a nationwide cold chain logistics network.
As of September 30, 2019, there were 170 self-operated Freshippo stores in China, primarily located in tier 1 and tier 2 cities. While Alibaba continues to invest in the growth of this business, self-operated stores that have been in operation for over 12 months have achieved positive combined adjusted EBITDA during the quarter ended September 2019.
Transforming Old – Alibaba is making good progress in transforming Alibaba’s grocery retail partners through Alibaba’s Taoxianda business, which enables consumers to place orders through the Taobao app and receive delivery through an on-demand logistics platform that leverages the delivery network of Alibaba’s local consumer services business.
Alibaba had digitally connected 485 of SunArt’s hypermarket stores as of the end of August 2019 and drove online grocery orders to 6.5% of its overall revenue during August 2019.
Alibaba continues to sign up new grocery partners and had enabled the digitization of over 800 offline retail stores across 278 cities as of August 2019.
During the quarter, Alibaba continued to achieve strong growth in daily GMV driven by robust order growth and increasing user order frequency. Alibaba is focusing on delivering value to restaurants and local service merchants by offering digital technology solutions and value-added services of the Alibaba Digital Economy.
Alibaba also continues to penetrate into less developed areas with strong growth potential. During the quarter, GMV from less developed areas grew 45% year-over-year.
Alibaba is leveraging assets in the Alibaba Digital Economy to further benefit Alibaba’s local consumer services business.
In Q3 2019, about 39% of new food delivery customers came from the Alipay mobile app. The potential for Alibaba’s local consumer services to further penetrate users in other parts of the Alibaba Digital Economy is significant as only 25% of annual active consumers from Alibaba’s China retail marketplaces have tried these services.
Alibaba’s Global E-commerce highlights in Q3 2019
Alibaba’s Southeast Asian e-commerce platform Lazada continues to witness growth momentum. For the fourth consecutive quarter, Lazada achieved over 100% year-over-year order growth, reflecting strong consumer demand in the apparel and accessories and FMCG categories.
For the quarter, mobile DAUs continued to double year-over-year, driven by effective user acquisition and engagement programs.
Lazada leverages its proprietary logistics infrastructure to achieve fast and efficient order delivery, lowering logistics costs and enabling a better delivery experience for consumers.