The quarterly results to the end of June for Alibaba (sales up 4%, including down by 1% for retail) and Temu (sales up 86%) worried financial markets. Rising competition from TikTok and other pure-players, combined with a slowdown in Chinese consumer spending, prompted both players to review strategies.
Following disappointing Q2 results, Alibaba decided on August 28 to convert the Hong Kong stock market listing (since 2019) to a primary listing. The company’s aim is to strengthen the presence on Asian markets. The move comes against a backdrop of a slowing Chinese economy and falling consumer spending. In the three months to the end of June, Alibaba’s total sales rose by 4% to US$34 billion, a slight increase year-on-year of 2%). Net margin fell by 29% year-on-year, to US$3.4 billion....
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Article authors
Morgane Monteiro
Journalist
Journaliste économique pour mind Retail depuis 2024, j’analyse la transformation digitale du commerce.