BABA - AliExpress Fuels Alibaba International's Revenue Growth By Giving Shoppers A 'Choice' | Benzinga
Key Takeaways:
- Alibaba International’s "Choice” service accounted for over 70% of its AliExpress B2C platform’s total orders, becoming a key growth driver
- Upgrading business models, supply chain arrangements, product innovation and continued investment are keys to rapid growth, said CEO Fan Jiang
By Teri Yu and Doug Young
Watch out, Amazon Prime. A new kid on the block is quickly gaining traction on the global e-commerce scene, as the year-old AliExpress Choice service becomes a major new growth driver for Alibaba International Digital Commerce (Alibaba International).
The international arm of Chinese e-commerce giant Alibaba Group (NYSE: BABA) reported accelerating growth in its latest quarter through March, posting its seventh consecutive quarter of strong gains. The unit has become one of the fastest growing segments among its parent company’s different businesses.
Alibaba International’s quarterly revenue jumped 45% year-on-year to $3.8 billion in the three months to March, according to the parent company’s latest quarterly results released on Tuesday. The growth came on the back of solid order and revenue gains for AliExpress, the company’s international retail platform that sells mostly under a cross-border model to a wide number of markets worldwide. Combined orders across Alibaba International’s marketplaces grew 20% year-on-year during the quarter.
Alibaba International’s annual revenue for its fiscal year through March rose 46% to a record $14.2 billion year-on-year, accounting for over 10% of Alibaba Group’s total. Besides AliExpress, its other major assets include Southeast Asian-focused Lazada, as well as Turkey-based Trendyol, which focuses on Europe and the Middle East.
"Our focus on upgrading our business models and supply chain arrangements, product innovation and continued investments in key markets are behind the success of the rapid and quality growth of Alibaba International,” said Alibaba International CEO Fan Jiang.
The company said it would increase its investments in key markets in a bid to improve customer experience, expand its customer base and strengthen its market position.
Among its various assets, AliExpress has emerged as one of the company’s biggest rising stars. The B2C marketplace was launched by Alibaba back in 2010 and now services more ...