The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BEIJING, China — Alibaba Group Holding Ltd. broke out revenue from other segments of its business for the first time in its latest earnings report, following an investigation by the US Securities and Exchange Commission. The percentage of revenue from activities excluding its core e-commerce jumped to 15 percent from 8 percent a year earlier. Chief executive officer Jack Ma's diversification strategy is starting to pay off, as Alibaba's revenue accelerated at the fastest pace since its IPO. Ma has spent billions of dollars buying video websites Youku Tudou and web browser UCWeb and pushed into cloud computing to generate new growth.
Source: Bloomberg
By Selina Wang; editors: Jillian Ward and Molly Schuetz.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.