The papers have recently been full of unfavorable stories on the consumer mood in China. Therefore, the market was particularly looking forward to Alibaba’s release of its third quarter figures. The group runs the country’s most important online store and marketplaces. Alibaba’s performance is widely considered as an acid test for the general situation as far as consumption in China is concerned.
Sales soared by 32 percent to 22.2 billion yuan renminbi (€3.2 billion) in the three months ended Sept. 30. That is more than anticipated by Bloomberg which expected RMB 21.3 billion (€3.0 billion). Net profit reached RMB 22.7 billion (€3.3 billion).
Major factors for the strong development include recently introduced cloud-based services, strategic partnerships like the one with electrodomestic retailer Suning Commerce Group and vast promotions at Taobao and Tmall, two of the group’s most important sales vehicles. Another factor was higher revenues through increased investments in advertising by its customers.
The gross merchandise volume generated through Alibaba’s websites was as huge as RMB 713 billion (€101.4 billion), up by 28 percent compared with last year’s third quarter. Sales made with mobile purchases nearly tripled and reached RMB 10.5 billion (€1.5 billion).