Alibaba’s results for the quarter ended December 31, 2016 show that the Chinese online commerce company continues to grow at an impressive rate, with total revenue of RMB53.2 billion (US$7.7 billion), an increase of 54% year-over-year. Revenue from its core e-commerce business, however, increased at a more moderate 42% year-over-year, while its strongest revenue growth during the quarter came from non-core businesses such as cloud computing and media and entertainment.
The results indicate that Alibaba may be facing a problem that was once considered impossible: a lack of new Chinese customers for its core e-commerce businesses. Active annual buyers stood at 443 million in December, up 8.8% year-on-year, and up only four million users from the prior quarter, or less than 1%.
Those buyers may be spending more money per purchase, thus suppor...
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