Aladdin Had a Genie. Alibaba Has Mobile Genius.

Posted May 21, 2015

Since Going Public, Alibaba Has Been Taking Off Like a Rocket, Climbing from 91 Million Active Users Each Month to 217 Million

If you’re anything like us you may have on occasion confused Aladdin with Ali Baba. After all, they both begin with “A.” So here’s an easy device for telling them apart. Aladdin is the dude with the lamp who became a huge success when he rubbed it and the genie inside fulfilled all his wishes. Ali Baba? He’s the guy who outwitted forty thieves and became a huge success with two words, “open” and “sesame.” Also, he had a company named after him.

Now, how do you tell apart Alibaba, the company, from competitors like Amazon and eBay? That’s one of the points of an article about Alibaba on pymnts.com. The following has been excerpted from the pymnts.com piece and edited to fit our format. You may find the complete story by clicking on this link.

Leading in a global, mobile market

“Alibaba is very much a mobile company,” Joseph Tsai, Alibaba executive vice chairman said in the company’s third-quarter earnings call, confirming Alibaba’s position in the mobile commerce space. Of course, Alibaba has one huge advantage at their side: China’s population is more likely to have a smartphone than a computer to shop from – smartphone penetration in China is estimated to be around 45 percent.

Alipay the 21st century version of “Open sesame?”

Alibaba also has another tool in their mobile commerce book — and that’s Alipay, the mobile payment option that has north of 300 million users. Last quarter, Alibaba executives wouldn’t break out how many Alipay transactions are made, but they did reveal that Alipay accounts for 78 percent of transactions made on its eCommerce platforms.

Mobile apps has mobile sales trending up

“We believe that the continued trend towards mobile provides us with a unique advantage to deliver a better consumer experience, as well as more value to merchants, because mobile users shop more frequently and we can serve them more targeted search results. We believe the increasing use of our mobile apps will field significant future growth in our China commerce retail business,” Tsai said in the company’s Q3 earnings call.

Exceeding expectations

In Alibaba’s Q4 earnings call last week (April 7), CFO Maggie Wu also gave some indication of how Alibaba’s mobile commerce statistics have grown and how they expect it to be a major part of the company’s mobile strategy. While computers used to be the dominant force for online commerce (and very much is for most eCommerce companies still), Alibaba is seeing a rapid shift toward mobile.

“It already accounts for more than half of our total GMV. So that growth on mobile business pretty much exceeds everybody’s expectations, and that trend is continuing,” she said, later noting that the “mobile take rate should approach PC or even higher than PC.”

ThreatMetrix

ThreatMetrix

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