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Alibaba's Biggest Shopping Extravaganza Falls Prey To China's Covid Measures

  • China’s Covid controls disrupted Alibaba Group Holding Limited’s BABA ability to deliver packages dragging down the e-commerce giant’s sales in a competitive market, CNBC reports.
  • “The resurgence of Covid has affected one area after another, resulting in abnormal or suspended logistic service in different places,” Alibaba CEO Daniel Zhang said during a quarterly earnings call. “This hurt merchant operations and consumer logistics experience.”
  • Disruptions affected nearly 15% of delivery areas in China starting in October and through the 11.11 shopping festival campaign period.
  • Also Read: China Resorts To Retired Soldiers To Drive iPhone Production At Biggest Foxconn Facility
  • This year, Alibaba declined for the first time to share the total gross merchandise value for its Singles Day shopping extravaganza that ended November 11.
  • The company only said sales were “in line” with last year, which recorded the equivalent of $84.54 billion GMV.
  • Rival JD.Com, Inc JD did not share GMV for its Singles Day promotional period this year.
  • Alibaba’s Taobao and Tmall online shopping platforms saw GMV fall by the low single-digits from a year ago.
  • While Zhang noted logistics disruptions through November 11, he said the company was “seeing improvements.”
  • Last week, China trimmed quarantine times and signaled a broader easing in its stringent Covid controls.
  • Price Action: BABA shares are down by 2.07% at $82.52 premarket on the last check Friday.

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