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Globe and Mail
21 hours ago
- Business
- Globe and Mail
What Makes E-Commerce the Biggest Driver of Alibaba's Revenue Growth?
Alibaba 's BABA e-commerce business continues to be the company's biggest strength. Its main platforms, Taobao and Tmall, help drive strong customer management revenues, which grew 12% year over year in the fourth quarter of fiscal 2025, driven by the improvement of take rates. Better tools and shopping incentives have improved user activity and order frequency, helping the company recover its core business despite a tough macro environment. Alibaba sees e-commerce as key to future growth, both in China and globally. With stronger monetization tools and better AI-driven search and recommendations, the company plans to grow consumption quality rather than just volume. Its global platforms, like AliExpress and Lazada, are also expected to benefit from rising cross-border demand. Alibaba is combining its food delivery platform, and Fliggy, its travel services platform, with its core e-commerce business, realigning resources around its main revenue engine and building a stronger delivery network. In April, the company also launched a new rapid delivery feature on Taobao, which the company called a strategic upgrade, as it helps it evolve from an e-commerce platform into a broader consumer-focused platform. In the fiscal fourth quarter, Taobao and Tmall Group earned RMB 93.2 billion ($12.9 billion) in revenues, up 4% year over year, and made up 47% of total company revenues. International commerce, including AliExpress and Lazada, earned RMB 27.4 billion ($3.8 billion), up 45% year over year, with AliExpress alone growing 22%. Together, domestic and global e-commerce remain Alibaba's strongest growth drivers. BABA Faces Stiff Competition in the E-Commerce Space As Alibaba sharpens its focus on e-commerce, it faces growing competition from domestic rivals JD and PDD Holdings Inc. Sponsored ADR PDD, both of which are rapidly expanding in China's digital retail market. is driving growth through strong category execution and ecosystem integration. Its RMB 200 billion 'export to domestic' program and food delivery momentum are boosting engagement. In the first quarter of 2025, JD Retail revenues grew 16.3% year over year. PDD Holdings continues to scale its group buying model while expanding merchant support. In the first quarter of 2025, online marketing services revenues rose 15% year over year, driven by PDD Holdings' enhanced tools to improve reach and performance. BABA's Share Price Performance, Valuation and Estimates BABA shares have gained 34.4% in the year-to-date (YTD) period, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector's growth of 5.7% and 2.8%, respectively. BABA's YTD Price Performance From a valuation standpoint, BABA stock is currently trading at a forward 12-month Price/Earnings ratio of 10.39X compared with the industry's 24.70X. BABA has a Value Score of B. BABA Valuation The Zacks Consensus Estimate for first-quarter fiscal 2026 earnings is pegged at $2.48 per share, which has remained steady over the past 30 days, indicating 9.73% year-over-year growth. The consensus mark for fiscal 2026 earnings is pegged at $10.47 per share, which has remained steady over the past 30 days. The estimate indicates 16.2% year-over-year growth. Alibaba currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (JD): Free Stock Analysis Report PDD Holdings Inc. Sponsored ADR (PDD): Free Stock Analysis Report This article originally published on Zacks Investment Research (
IOL News
21 hours ago
- Business
- IOL News
Seoul asks Temu, AliExpress to pull children's products over safety concerns
Their rapid rise has triggered growing scrutiny over business practices and product safety, including in South Korea. Their rapid rise has triggered growing scrutiny over business practices and product safety, including in South Korea. Chinese e-commerce titans like Shein, Temu and AliExpress have seen a surge in global popularity in recent years, drawing in consumers with a wide range of trendy, ultra-low-cost fashion and accessories -- positioning them as major rivals to US giant Amazon. The Seoul city government has asked online retail giants Temu and AliExpress to suspend sales of certain children's products over safety concerns, saying Friday that some goods far exceeded local limits for hazardous substances. The Seoul city government said Friday it recently inspected 35 children's products sold on Temu and AliExpress -- including umbrellas, raincoats and rain boots -- and found that 11 failed to meet South Korea's safety standards or contained hazardous substances above local limits. In six of the umbrellas, phthalate-based plasticisers -- chemicals used to make plastics more flexible -- were found at levels far exceeding safety standards, the city said in a statement. Some of those products exceeded the domestic safety limit by up to 443.5 times for the chemical, while two items were found to contain lead at levels up to 27.7 times higher than the locally acceptable level. Based on the inspection results, the Seoul government said it "has requested that online platforms suspend sales of the non-compliant products". It also noted that "prolonged exposure to harmful substances can affect children's growth and health", and highlighted the need to carefully review product information before making purchases. The Seoul government told AFP the retailers have no legal obligations to comply with their request. But Temu said it "immediately initiated an internal review" after receiving notice from the city government, and that it was "in the process of removing the said items". "We are continuously improving on our quality control system to prevent, detect, and remove non-compliant products," a Temu spokesperson told AFP. AliExpress did not immediately reply to a request for comment. Phthalate-based plasticisers can cause endocrine disorders, while lead exposure above safety limits can impair reproductive functions and increase the risk of cancer, according to Seoul authorities. Last year, the city government said women's accessories sold by Shein, AliExpress and Temu contained toxic substances sometimes hundreds of times above acceptable levels. The European Union last year added Shein to its list of digital firms that are big enough to come under stricter safety rules -- including measures to protect customers from unsafe products, especially those that could be harmful to minors. AFP
Time of India
a day ago
- Business
- Time of India
Seoul asks Temu, AliExpress to pull children's products over safety concerns
The Seoul city government has asked online retail giants Temu and AliExpress to suspend sales of certain children's products over safety concerns, saying Friday that some goods far exceeded local limits for hazardous substances. Chinese e-commerce titans like Shein , Temu and AliExpress have seen a surge in global popularity in recent years, drawing in consumers with a wide range of trendy, ultra-low-cost fashion and accessories -- positioning them as major rivals to US giant Amazon . Their rapid rise has triggered growing scrutiny over business practices and product safety, including in South Korea. The Seoul city government said Friday it recently inspected 35 children's products sold on Temu and AliExpress -- including umbrellas, raincoats and rain boots -- and found that 11 failed to meet South Korea's safety standards or contained hazardous substances above local limits. In six of the umbrellas, phthalate-based plasticisers -- chemicals used to make plastics more flexible -- were found at levels far exceeding safety standards, the city said in a statement. Some of those products exceeded the domestic safety limit by up to 443.5 times for the chemical, while two items were found to contain lead at levels up to 27.7 times higher than the locally acceptable level. Based on the inspection results, the Seoul government said it "has requested that online platforms suspend sales of the non-compliant products". It also noted that "prolonged exposure to harmful substances can affect children's growth and health", and highlighted the need to carefully review product information before making purchases. The Seoul government told AFP the retailers have no legal obligations to comply with their request. But Temu said it "immediately initiated an internal review" after receiving notice from the city government, and that it was "in the process of removing the said items". "We are continuously improving on our quality control system to prevent, detect, and remove non-compliant products," a Temu spokesperson told AFP. AliExpress did not immediately reply to a request for comment. Phthalate-based plasticisers can cause endocrine disorders, while lead exposure above safety limits can impair reproductive functions and increase the risk of cancer, according to Seoul authorities. Last year, the city government said women's accessories sold by Shein, AliExpress and Temu contained toxic substances sometimes hundreds of times above acceptable levels. The European Union last year added Shein to its list of digital firms that are big enough to come under stricter safety rules -- including measures to protect customers from unsafe products, especially those that could be harmful to minors.
The Independent
a day ago
- Business
- The Independent
E-tailers eye Europe to boost sales
Chinese cross-border online retailers are strengthening efforts to expand into Europe to attract new customers and bolster sales. Eyeing the growing demand for online shopping in European countries, particularly among younger shoppers, Chinese e-commerce players are providing cost-effective products to local consumers by leveraging efficient logistics and supply chain networks, according to industry experts. AliExpress, Chinese tech company Alibaba Group's cross-border e-commerce platform, recently opened its services to local merchants in Poland. Over the past year, AliExpress has appealed to a batch of well-known Polish companies, and this strategic move will further bolster the platform's business growth in the local market. AliExpress said some local merchants can enjoy benefits like zero deposit and commission-free services for the first three months, and directly sell their products to consumers from Poland and countries around the world. Data from market research company Euromonitor International showed that AliExpress and Polish online shopping platform Allegro are the two most popular e-commerce platforms in Poland, the largest e-commerce market in Central and Eastern Europe. To better support the operations of local merchants, AliExpress has partnered with more than 10 leading overseas warehouse service providers to roll out 'certified warehouses' covering the United States, Spain, France, Germany, the United Kingdom, and Poland. The certified warehouses will provide faster deliveries and smoother shopping experiences for overseas buyers. According to global research firm Statista, the revenue of Europe's e-commerce market is expected to reach $707.9 billion (£526.88 billion) in 2025, with a compound annual growth rate of 7.95 per cent, and the figure is projected to touch $961.27 billion (£715.47 billion) by 2029. Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation, said European nations have high consumption capacities and efficient and convenient logistics infrastructure, while local shoppers have developed mature online shopping habits, providing an ideal market environment for the development of cross-border e-commerce. 'As European consumers have shown surging demand for online purchasing in the post-pandemic era, Chinese e-commerce platforms could further expand their footprint there by offering commodities with high cost-effectiveness and localised operation and services,' Hong said. Temu, a cross-border e-commerce app owned by Chinese online discounter PDD Holdings, is expanding its presence in European countries in an attempt to diversify its customer base. According to Consumer Edge, a data insights and market intelligence company, Temu's growth in the European Union surged more than 60 per cent year-on-year in early May, with France leading the charge at nearly 100 per cent growth. TikTok Shop, the e-commerce marketplace of popular short-video app TikTok, which is owned by Chinese tech company ByteDance, has made inroads into Europe with its rollout in Germany, France and Italy.
The Sun
a day ago
- Business
- The Sun
Seoul urges Temu, AliExpress to remove unsafe children's products
SEOUL: The Seoul city government has asked online retail giants Temu and AliExpress to suspend sales of certain children's products over safety concerns, saying Friday that some goods far exceeded local limits for hazardous substances. Chinese e-commerce titans like Shein, Temu and AliExpress have seen a surge in global popularity in recent years, drawing in consumers with a wide range of trendy, ultra-low-cost fashion and accessories -- positioning them as major rivals to US giant Amazon. Their rapid rise has triggered growing scrutiny over business practices and product safety, including in South Korea. The Seoul city government said Friday it recently inspected 35 children's products sold on Temu and AliExpress -- including umbrellas, raincoats and rain boots -- and found that 11 failed to meet South Korea's safety standards or contained hazardous substances above local limits. In six of the umbrellas, phthalate-based plasticisers -- chemicals used to make plastics more flexible -- were found at levels far exceeding safety standards, the city said in a statement. Some of those products exceeded the domestic safety limit by up to 443.5 times for the chemical, while two items were found to contain lead at levels up to 27.7 times higher than the locally acceptable level. Based on the inspection results, the Seoul government said it 'has requested that online platforms suspend sales of the non-compliant products'. It also noted that 'prolonged exposure to harmful substances can affect children's growth and health', and highlighted the need to carefully review product information before making purchases. The Seoul government told AFP the retailers have no legal obligations to comply with their request. But Temu said it 'immediately initiated an internal review' after receiving notice from the city government, and that it was 'in the process of removing the said items'. 'We are continuously improving on our quality control system to prevent, detect, and remove non-compliant products,' a Temu spokesperson told AFP. AliExpress did not immediately reply to a request for comment. Phthalate-based plasticisers can cause endocrine disorders, while lead exposure above safety limits can impair reproductive functions and increase the risk of cancer, according to Seoul authorities. Last year, the city government said women's accessories sold by Shein, AliExpress and Temu contained toxic substances sometimes hundreds of times above acceptable levels. The European Union last year added Shein to its list of digital firms that are big enough to come under stricter safety rules -- including measures to protect customers from unsafe products, especially those that could be harmful to minors.
