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Alibaba announces Q3 2019 results: extending luxury brands engagements

Heidi Law| Monday, November 05 2019

Alibaba Group announced financial results for the third quarter of 2019. The group delivered robust revenue growth of 54 percent in the quarter, with core marketplace business continuing to show strong profit and cash flow growth. Annual active consumers on the China retail marketplace reached 601 million, an increase of 25 million compared with last year.

Tmall expands B2C market

The B2C platform continued to gain consumer wallet share, reporting a growth in physical goods of 30 percent in the quarter, driven by improvements in conversion rates and increases in traffic. In terms of growth, apparel is among the strongest categories, alongside fast-moving consumer goods and home furnishings.

Tmall is also delivering strong performance as a leading brand-engagement and distribution platform in China. During the third quarter, Qeelin (a member of the Kering Group), Stella McCartney, Theory and Sergio Rossi has launched flagships stores on Tmall. They have also joined the Tmall Luxury Pavilion, a customised premium shopping experience.

Partnership with Richemont

A new partnership with the Swiss luxury group is announced in October. Retail offerings of the online luxury retailer Yoox Net-A-Porter (YNAP) group, will become available to the Chinese consumers. A joint venture will be established to launch two mobile apps for Net-A-Porter and Mr Porter, offering multi-brand, in-season online stores targeted at the Chinese consumers. Alibaba will provide the technology infrastructure, payments and logistics support to the joint venture.






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