Alibaba has taken a beating in recent months. In the quarter ending in December, profits plummeted, while the only growth in retail was driven by flash delivery in China and (to a small extent) by international operations.
Promotions with no effect
Profits at the Chinese e-commerce giant fell by a whopping 66% in the third quarter, which ended on December 31, despite modest revenue growth of 1.7%. It is also striking that in the Chinese domestic market, e-commerce grew solely thanks to “quick commerce” (+56%), the instant delivery service that is rapidly gaining traction in China and is the subject of fierce competition. Internationally, including AliExpress in Europe, there was 3% retail growth.
