Alibaba almost doubles sales and more than doubles profit

Alibaba almost doubles sales and more than doubles profit

China’s largest e-commerce player Alibaba saw its sales rise by 80% and its profit by an impressive 150% in the last quarter of 2012. Rumours about a pending public offering are getting more persistent.

Profits almost tripled

The news that quarterly sales of Alibaba have risen by 80% to 1.84 billion dollar (almost 1.4 billion euro) and that profits have almost tripled to 642.2 million dollar (about 500 million euro), was published in a document Yahoo! handed to the American exchange watchdog SEC. The Chinese themselves do not communicate about their sales figures, but Yahoo! – that owns 24% of Alibaba – is obligated to do so as a listed company.

 

Alibaba itself does not sell goods, but it runs internet platforms such as Taobao (C2C) and Tmall.com (B2C), a marketplace that connects retailers and brands with online shoppers. The company gets paid via commission on the sales made.

 

As largest e-commerce player of China, Alibaba is in the best position to profit from the current internet boom in China: between 2003 and 2011 internet sales have doubled each year and according to McKinsey & Co sales will triple between 2011 and 2015 to 395 billion dollar (about 300 billion euro).

 

At the end of 2012 China had over 564 million internet users, 10% more than the previous year. The total value of all goods sold by Alibaba this year, should be around 250 billion euro, according to analysts.

 

Soon at the exchange?

The persistent super growth – between September 2010 and September 2011 sales of Alibaba also grew by 81% and the year after by 74% - is big news, because a public listing of Alibaba is written in the stars.

 

Billionaire Jack Ma, chairman of the Alibaba Holding, said last year that a public listing within five years is a possibility, but more and more analysts are predicting the IPO to happen this year or maybe the next year. Alibaba would be worth about 62.5 billion dollar (47.48 billion euro), as calculated by eight investment banks on behalf of Bloomberg.

Questions or comments? Please feel free to contact the editors


Luxury manufacturers can block retailers from selling on Amazon

07/12/2017

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon. The European Court of Justice has ruled on the matter after cosmetics manufacturer Coty filed a complaint.

Surge in mobile sales during Thanksgiving weekend

29/11/2017

During Thanksgiving weekend in the United States, which contains Black Friday and Cyber Monday, there was a big surge in mobile sales. Those two days saw a total sales figure of almost twelve billion dollar (just shy of ten billion euro).

Alibaba reveals its high-tech store of the future

24/11/2017

Amazon Go’s automated supermarkets have not yet arrived, but Alibaba already has its answers ready. The Chinese online retailer has showcased Tmall Supermart, filled with technology: from virtual fitting rooms to facial recognition.

Rakuten bridges gap to Japanese online consumer

30/10/2017

In Alibaba and Amazon’s shadow, Japanese Rakuten Ichiba is quickly developing. Several Western chains are using the platform to sell their products to Japanese online consumers.

Whole Foods contributes to Amazon's enormous turnover increase

27/10/2017

American Amazon’s third quarter turnover grew a lot once more, partially thanks to Whole Foods. This was the first time the chain’s turnover was added to Amazon’s overall turnover.

More than half of American families subscribed at Amazon

21/10/2017

An astonishing ninety million Americans have joined Amazon’s subscription program, Amazon Prime. Considering there are 126 million families in the United States, it is clear that Amazon has a tight grip on its home territory. What can Europe learn from this?

Back to top