annual transaction volumes cross 3 trillion yuan, but
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[March 21, 2016]
SHANGHAI (Reuters) - Chinese
e-commerce company Alibaba Group Holding Ltd said on Monday its total
transaction volume had surpassed 3 trillion yuan ($463 billion) in the
fiscal year through end-March, highlighting a milestone even as growth
With less than two weeks left in the fiscal year, the figure
represents growth of about 23 percent from the 2.44 trillion yuan in
gross merchandise volume (GMV) Alibaba reported for the previous
year - a significant downshift from the 46 percent GMV growth it had
in the year to March 31, 2015.
Alibaba has sought to bring more foreign sellers onto its e-commerce
platforms and penetrate China's huge and largely untapped rural
consumer market as Chinese economic growth has slowed to a 25-year
In a post on the company's external blog, Executive Vice Chairman
Joe Tsai wrote that the company's growing GMV reflected China's
shift away from investment and export-led growth toward consumption
and services, with Alibaba "at the heart OF this new economy".
For analysts, GMV is an important measure of Alibaba's growth. But
Tsai suggested that GMV, which has tripled since 2012, was becoming
less important as a measure of the company's success.
"Growth is meaningless unless it is sustainable. Thus, we have
turned our focus to quality growth and broadening domestic
consumption," he wrote.
"While GMV is a proxy for scale, our focus on quality and
sustainable growth means how we measure success is no longer
dependent on a simplistic view of GMV growth," he wrote.
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In January, Alibaba said GMV rose 23 percent in the third quarter
from the same quarter of the previous year to 964 billion yuan - its
slowest quarterly growth rate in more than three years.
Alibaba's growth has been criticized over the years, with some
brands saying the company does not do enough to end the widespread
sale of counterfeit products on its platforms, and the problem of
(Reporting by John Ruwitch; Editing by Muralikumar Anantharaman)
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