Alibaba’s e-Commerce Business stands as the Core Revenue Generator
China’s leading eCommerce company, Alibaba, successfully beat the analyst estimates gaining an increase of approximately fifty six percent in its revenue for the first quarter, driven by rigorous online sales. The report published on Thursday, August 17, 2017, shows that Alibaba Group Holding Ltd, which stands as one of the most valuable firms in Asia, has continued to draw the lion’s share of its core revenue via eCommerce, despite constant and robust growth in its cloud and entertainment business. Sales on the eCommerce platform of the company made roughly eighty six percent of total revenue in three months up to June 30, 2017. The count has consistently grown from seventy-three percent in the last year.
Alibaba’s stock prices are raised by more than eighty one percent in the current year, maintained by company’s predictions about strong year-long revenue growth of approximately 45 to 49 percent. Daniel Zhang, the Chief Executive of Alibaba confirmed that the firm invested US$ 1.1 billion in Tokopedia- a retailer in Southeast Asia, which added to its growing network of possessions and assets in the province.
In June 2017, Alibaba had further invested US$ 1 billion in Lazada Group, which is an eCommerce platform based in Singapore. The company also tried to target new merchant companies in the United States and in Russia, to widen their plan and boost revenue thus attracting new customers beyond China. In a telephonic conversation with the analysts on August, Alibaba executives stated that the company is expecting a more sensible contribution from various offline initiatives as an element of its alleged “new retail” plan.
However, as per the analysts, Alibaba still needs to prove the exact value of numerous recent large-scale investments done offline in recent times, which includes an infusion of $2.6 billion into Intime Retail Group Co Ltd- a department store chain.
You may be interested
Smart Nanotechnology Enlivens Wooden Ships and ArtifactsMohit Joshi - January 28, 2019
Scientists developed an innovative approach using ‘smart’ nanocomposites to conserve 16th-century British warship, the Mary Rose, and its artifacts. Shipwrecks are preserved in sediments under cold water,…
Researchers Discovered New Properties of Ferroelectric CrystalMohit Joshi - January 25, 2019
Researchers discovered new properties of ferroelectric crystal, according to a study published on July 10, 2018. This study was conducted by a team of researchers from China.…
Researchers Develop Novel Antibody to Knockdown of Protein in VertebratesMohit Joshi - January 24, 2019
Researchers from Technische Universität Dresden developed a synthetic antibody that improves functional analysis of proteins. A research led by Dr. Jörg Mansfeld of the Biotechnology Center of…