Significant revenue growth for Alibaba in 2018 fiscal year
The dramatic jump has beaten analysts' estimates by a wide margin, as the internet behemoth strives to consolidate position in the fierce business-to-customer segment.
Alibaba's chief executive officer Daniel Zhang, who addressed the Investor Day in Hangzhouon Thursday, said the growing stickiness of users coupled with data technologies, which facilitate online shopping, would drive sales to a record high and boost gross merchandise to a volume of $1 trillion by 2020.
Zhang added the figure range compared with the 56 percent growth posted for the 2017 fiscal year,which ended on March 31. At the same event last year, the firm predicted a growth of 48 percent in revenue.
Given the already-bulky customer base , the projection has surpassed the expectation of investors. For instance, Citi Research modeled the 2018 fiscal revenue to grow 34.7 percent year-on-year, according to the South China Morning Post.
The Alibaba's Tmall site, which currently stood as the world's largest e-commerce company, had further been challenged by JD.com Inc at home. It reported its first quarterly earnings of 239 million yuan ($35.2) for the three months of the year, since it listed in 2014.
Alibaba's core commerce segment, which includedits iconic Tmall and Taobao marketplaces, have further brought in 60 percent of the company's online embryo's profitability in the last year.
The company had also branchedout overseasand secured 80 million annual active users outside of China via its indigenous foreign marketplace,Ali Express and Lazada Group, which had been acquired by the Southeast Asian e-commerce group last year. ■