China Ecommerce Keeps Growing

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Despite fears that revenue growth would slow as China’s economy cools down, ecommerce giants including Alibaba continue to post impressive year-on-year growth.

In the latter’s case the latest quarter-on-quarter increase was 45%. This must be music in the ears of ecommerceoutgoing CEO Jonathan Lu and new incumbent Daniel Zhang. This is a clear vote of confidence in the new leader.

Following the initial announcement Alibaba share values jumped 7.5% in New York to close at $86. This suggests that they could soon claw back the residual 2015 aggregated stock drop that now stands at 17% adjusted. Founder chairperson Jack Ma who singled out Zhang following his success with the November 11 ‘singles day’ ecommerce initiative, will be pleased with his decision to appoint young talent.

“Daniel is a proven international business leader and innovator with a strong track record of delivering results,” he said at the time of the announcement, “and this reflects our commitment to continuing to develop strong leadership from within,” he said.

Key May Be Alibaba’s Foreign Ecommerce Leg

Alibaba’s tactic of diversifying its ecommerce operation beyond China boundaries may have had something to do with its impressive last quarter results. It has enjoyed success targeting Russian, Indian and Brazilian consumers through AliExpress and this trajectory seems set to continue. Jack Ma’s eventual goal is 50% of sales inside China and 50% without. This will provide a balanced strategic base when negotiating with the country’s ecommerce regulators.

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Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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