Home / Knowledge / News / Apparel/Garments / Alibaba honcho lists reasons why company is thriving
Alibaba honcho lists reasons why company is thriving
07
May '16
Boosted by a 39 per cent year-on-year for the first quarter of 2016, Joe Tsai, Alibaba Group Executive Vice Chairman listed three core reasons why Alibaba is bucking the trend in these challenging times for the global economy.

In a blog post, Tsai wrote that the first of those three reasons is consumption which propels strong growth. According to Tsai, Chinese households today have aggregate net cash reserves of over $4.6 trillion. This accumulated wealth and liquidity is the result of real double-digit wage growth over the past decade. In contrast, household debt in the US was 98 percent of GDP in 2008 and the average American family was in heavy debt. The levered balance sheet of the American consumer and their credit deterioration contributed to the global financial crisis.

“Chinese consumers, with their healthy balance sheets and ability to spend, will propel China's shift from an export-and investment-led economy to a consumption-driven economy. Alibaba rides on top of this secular tide as we enable more products and services, be it domestic or import, to reach the consumer,” he wrote in the blog.

Tsai said the second reason is a strategic perspective on Alibaba's ecosystem

“We have a balanced portfolio of businesses in our ecosystem that are in various stages of growth, profit trajectory and cash generation. Depending on years in gestation, we group these businesses into what I call 'Core Cash Flow,' 'Emerging Traction' and 'Long-term Strategic Bets.'

Under Core Cash Flow, Tsai said Alibaba's core e-commerce business is strong and extremely cash generative. “We achieved 41 per cent year-on-year revenue growth in China retail marketplaces for the quarter, with high and sustainable operating margins. On the strength of our core business, we delivered $8 billion in free cash flow in fiscal 2016. This enables us to invest for the future.”

Under the Emerging Traction head, several of Alibaba's businesses have emerged with high growth traction and expanding operating leverage.

AliCloud is today one of the largest cloud computing businesses in the world. In the latest quarter this business saw 175 per cent year-on-year revenue growth, which is an acceleration of the 126 per cent growth rate from the prior quarter.

“Another Emerging Traction star is mobile internet services, including mobile search and mobile media. In this quarter we have provided a glimpse into the potential of the mobile lifestyle in China in addition to mobile commerce, as revenues from mobile internet services and mobile operating systems grew nearly 50 per cent year-on-year,” Tsai said.


Must ReadView All

Courtesy: Rieter

Textiles | On 22nd Aug 2017

Rieter unveils new generation of RDB-D 50 draw frame

Rieter, a producer of textile machinery and automobile components,...

Courtesy: Alizilla

Textiles | On 22nd Aug 2017

‘New Retail’ strategy Alibaba’s focus in next 15 years

Alibaba executive vice chairman Joe Tsai has said that the next 15...

Courtesy: Eurovet/ Interfiliere Shanghai

Textiles | On 22nd Aug 2017

Interfiliere Shanghai to focus on textile printing

Interfiliere Shanghai, the leading trade show for intimates,...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search