Alibaba growth slows right before IPO | RetailDetail

Alibaba growth slows right before IPO

Alibaba growth slows right before IPO

Yahoo has released financial results for Alibaba's quarter ending on 30 September. Although the Chinese company' growth has slowed down, its turnover still increased with a massive 51% and is now higher than eBay's and Amazon's combined.

Larger than eBay and Amazon put together

In the quarter up to 30 September 2013, Alibaba had a 51 % turnover growth compared to the year before, reaching 1.3 billion euro. The quarter before that, the company managed a 61 % turnover growth and going back another quarter, it even reached 71 %. Its turnover has surpassed that of Amazon and eBay combined. It is 2 % of China’s gross domestic product.


Its gross profit growth dropped to 58 %, compared to 74 % the previous quarter. Gross profit reached 920 million euro.


Alibaba is "black box"

The slower growth is not good news for Alibaba, on the eve of an IPO. What makes matters worse is that these numbers, which Yahoo releases with a quarter’s delay, are the only source of financial information about the Chinese ecommerce giant. “The company is a bit of a black box”, Brian Wieser (a Pivotal Research analyst) told the Financial Times. The IPO would nevertheless be worth 44 billion euro at least.


Will Tao, from iResearch, thinks the slower growth is inevitable: “Every large company will eventually have to accept slower growth.” The Chinese economy also slowed down, which indubitably had its effect on Alibaba.


Alibaba refused to elaborate on the numbers, but a source close to the company defended the numbers: “It is still growing faster than any other company its size.”


Questions or comments? Please feel free to contact the editors

German Otto Group continues to soar


German online company Otto Group saw its turnover grow 10.9 % to 7.76 billion euro in the past fiscal year. The former mail order company will continue to invest in start-ups and technology.

Decent profit increase for


Chinese online retailer has grown strongly in 2017: turnover grew nearly 50 % and it was profitable again. The company also expects to exceed a 30 % growth pace in 2018’s first quarter.

Rakuten ditches Priceminister brand


Rakuten has decided to get rid of its French brand Priceminister and absorb it into Rakuten, similar to what it did tot British acquires Eastern European competitors


Fast food supplier acquired its Bulgarian competitor BGmenu and its Romanian competitor Oliviera in yet another step towards its goal of being the European market leader.

Colruyt joins PostNL's grocery service


The mailman will deliver groceries every two weeks from now on: PostNL will collaborate with new grocery service Stockon in the Netherlands. A remarkable fact is that its private label brands are Boni, which is Belgian supermarket chain Colruyt’s private label.

Strong growth for Chinese e-commerce once again


There was another strong increase in the Chinese online market last year: compared to 2016, it achieved an astonishing 32 % growth. In that regard, China is performing exceptionally online.

Back to top