Alibaba India Ecommerce Curbs Losses
Alibaba India Ecommerce Pvt. Ltd., Indian B2B arm of Alibaba, has reported its revenues for FY18 as $3.6 Mn, a 73% increase since last financial year.
The company further reported a net loss of $4.05K during the same fiscal; this is 89% decrease from the last financial year. The company’s total expenses for the fiscal were reported as $3.6 Mn.
The B2B arm set in 2010 enables Indian sellers to list their export businesses and makes revenue by providing online services to these merchants.
In India, the Chinese ecommerce giant also operates Aliexpress – a B2C ecommerce marketplace. The platform is comparatively less popular than Indian locals like Flipkart, Snapdeal, Shopclues as well as the foreign counterpart – Amazon India.
A major reason here is slow delivery, wherein an order takes a minimum of three weeks to reach its Indian consumer as it is sourced directly from China.
Chinese ecommerce giant Alibaba has been actively investing in India since 2015. So far it has invested more than $2 Bn in companies like One97 Communications, Snapdeal, Zomato, Bigbasket, Xpressbees among others.
Overall, Alibaba’s revenue stood at $9.9 Bn in the 2018 March quarter, an increase of 61% year-over-year.
Alibaba, the king of China’s ecommerce industry, has made a late and silent entry in Indian ecommerce without much fanfare and marketing activities, even as promotions for first-time customers or discounts continue to fare much more than its Indian competitors.
At the time when Alibaba, Walmart and Amazon have geared up their arsenals to explore Indian ecommerce industry, Alibaba has a long way to go to beat the same-day deliveries of Amazon and Flipkart( acquired by Walmart), the deepening presence in Tier II and III cities, huge warehouses and delivery fleets and a lot more understanding of the market.