Alibaba 2018 Three Quarter Results: Clothing As The Largest Category

Alibaba group released its financial performance in the third quarter of 2018.

This quarter, Ali's business revenue reached 85 billion 148 million yuan, an increase of 54.5% over the same period.

Net profit was 18 billion 241 million yuan, an increase of 4.8%.

Non-GAAP net profit of 23 billion 453 million yuan, an increase of 6.2% over the same period.

The group's revenue grew 54% this quarter, and core market business continued to show strong profits and cash flow growth.

China

The annual active consumers reached 601 million, an increase of 25 million over last year.

Continue to expand the B2C market, the B2C platform continues to get the share of consumer wallet, reported that the physical commodity increased 30% in the current quarter, thanks to the increase of conversion rate and the increase of traffic volume.

In terms of growth, clothing is the most powerful category, as well as fast moving consumer goods and household goods.

The Commission of luxury goods is down to 5%, according to World Wide Web technology.

To push their competition in the lucrative luxury market to a new level, including giving luxury brand image and price control rights, these platforms will provide customer data and draw Commission on consumption. Alibaba's highest Commission on luxury goods is up to 5%, which is basically the same as that of China's online shopping industry, but far below the level of 12 to 15% drawn by us or European electricity providers.

At present, Jingdong luxury platform Toplife has attracted LVMH rival to open cloud group, and its Paris family and Saint Laurent have been settled.

Alibaba claims that it can acquire large amounts of Chinese consumer data in the world's largest luxury fashion market, and has strong local payment systems.

As early as 2016, Alibaba disclosed the consumption scale of APASS members at least 30 billion yuan per year online shopping.

According to the data, the APASS black card membership is about 1/10000 of the active members of the whole Alibaba, which means that the average black card consumption per year is over 600 thousand.

The luxury market in China has been infiltrated, and the forefront of the market has been occupied. Luxury brands are looking for more opportunities for growth, but are still vigilant against Alibaba and Jingdong.

(author: Sun Huahua)