China's e-commerce giant Alibaba is cementing its position
Jul 08, 2019 (China Knowledge) - Alibaba now is China's only e-commerce company operating in the black. In the last fiscal year, Alibaba’s net profit reached to a new high, which totaled RMB 87.6 bln. By comparison, JD.com has suffered a net loss of RMB 2.4 bln with Pinduoduo eroding its market share, and Pinduoduo also suffered a net loss of RMB 10.2 bln, due to offering heavy discounts.
Alibaba Group Holding is cementing its leading position by using events like the 618 shopping festival. The 618 shopping festival was initiated by JD.com and is now held over the first 18 days of June.
Previously, Alibaba did not campaign hard during the shopping festival, but this year it was set to beat JD.com both in pricing and discount items. Alibaba has not disclosed its 618 results, but it is predicted that Alibaba’s sales has reached close to those of JD.com, which totaled RMB 201.5 bln, up 26% YoY.
Meanwhile, JD.com's outlook remains gloomy. Its founder and CEO Liu Qiangdong's arrest over rape allegations in the U.S. last August greatly impacted the company's business. It is also battling with China's third-largest online retailer Pinduoduo, which has been winning market share by offering heavy discount. Meanwhile, the company’s management is undergoing turmoil which is said to worsen JD.com's predicament.
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