Alibaba Quarterly Revenue Surges 61% As It Pushes Ahead With 'New Retail' Strategy
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Chinese e-commerce giant Alibaba Group raised its outlook for full-year revenue growth after reporting its fastest pace of sales since its record 2014 initial public offering — an indicator of strong Chinese consumer spending.
With sales growth of 61 percent booked for the September quarter, billionaire Chairman Jack Ma is now pushing deeper into shaking up China’s old-school retail sector. Alibaba, China’s biggest company, is enlisting half a million mom-and-pop shops as part of a drive to woo customers both online and in-store as it opens its wallet to boost services to merchants on its platform. That’s on top of an avowed $30 billion spending plan for everything from artificial intelligence and cloud computing to logistics.
Cloud computing revenue doubled in the September quarter, cementing its place as one of Alibaba’s fastest-growing businesses, in direct competition with Amazon.com Inc. and Tencent Holdings Ltd. But in the long run, it’s staking the future on its bread-and-butter operation of catering to consumers.
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