HONG KONG – China's leading e-commerce Alibaba Group Holding has stressed that online merchants should be linked to offline buyers to expire growth.
While Alibaba is trying to release profits between Wednesday and October, looking for investors and analysts are looking to see whether China's economic adjustment can be sustained, a 6.6% year-on-year fall since last year, since 1990.
Alibaba's creator Jack Ma Yun used the new "retail trade" name to describe online retail and retail trade (2017), and executives approached the approaching company's earnings questions. solutions
"In the next five years, you will see that everything in the retail sector is more digitalized," said Joseph Tsai, founder and Deputy Director Alibaba last week in Reuters.
Alibaba offered a technology month to transform the brick and mortar store. Daniel Zhang Yong, CEO, has said that "all companies need a new way of operating" in the digital era of the economy.
The company has registered unpaid profits for the months of July and September, because analysts' expectations are lacking in income and net income. In November, Alibab reduced the forecasts of 2018 by 4% and 6%, estimated at 375 million and 383 million yuan (55.6 million $ 56.8 million dollars).
The e-commerce marketed by Pinduoduo, which uses social communication information for consumers, is leading the market demand. New York eMarketer's research company forecast Alibaba's online market share falls almost 5 percent to 2019 with 53.3%.
But Tsai has rejected the idea that the company's slowdown in the growth of the Chinese economy will slow down, because people are worried about "Alibabes growth in the context of China."
Alibaba's Online Solitaire Day Online Purchase Agreement, on November 11, has re-established the registration of sales until it reaches 213.5 million yuan. However, compared to the previous year, the increase was slower.
New retail trade news could have a long-term boost, even though the initial hefty costs have been, Tsai said in reference to Alibaba's online supermarket Hema Xiansheng. The premium grocery chain returns Alibaba's cash rather than the online business, he said.
A typical Hema store needs around one year, even if it is broken, and online applications are approximately 60% through Jefferies's mediation research. Women contribute 25-45 years to the most sales, with a 80% reduction rate.
Hema has opened more than 100 stores throughout China, and Tsai said the expansion of the national network is still "a long way".
The application of data analysis technologies allows merchants to include their customers, including their purchasing histories, at any moment in a store, Tsai said.
Analysts are afraid of the large investments in the retail trade model weighing on the profit margins of Alibaba.
The model calls for "investment in marketing, [capital expenses] and purchases to consolidate its market positions in the coming years, "analysts at Fitch Ratings wrote in a final report, but Alibaba has an effective effect on its e-commerce business to finance this new ambition.
Alibaba's smaller competitor JD.com also has open stores that combine online and outdoor experiences. The company launched a supermarket chain called supermarket 7Fresh last year and, in the next three or five years, 1,000 stores were opened, according to Wang Xiaosong Chief Executive Officer in September.