Alibaba In­dia Ecom­merce Curbs Losses

Shoes & Accessories - - The Month That Was -

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.