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An Overview of Alibaba's Mobile Audience – Market Realist – Market Realist

An Overview of Alibaba's Mobile Audience – Market Realist – Market Realist

Alibaba’s Post-Earnings Update: Cloud, Mobile Users, Brand Rights PART 9 OF 16

Mobile MAUs grow by 22 million

With the rise of mobile as a popular platform for online shopping, it’s important to understand how Alibaba (BABA) is faring on the mobile front. This view could provide vital clues about the company’s prospects.

Alibaba has consistently increased its mobile audience. The company finished fiscal 1Q18 with 529 million mobile MAUs (monthly active users). This figure implies that the company added 22 million mobile MAUs during the quarter, as it ended fiscal 4Q17 with 507 million mobile MAUs. On a year-over-year basis, Alibaba’s mobile MAUs increased by 102 million, as the company had 427 million mobile MAUs at the end of fiscal 1Q17.

App upgrade supports growth in mobile MAUs

Alibaba (BABA) attributed the gain in its mobile MAUs in fiscal 1Q18 to the strength of the Taobao App, which received a facelift earlier this year. A new Taobao user interface rolled out in May, and it came loaded with updated personalization technology that contributed to improving the user experience and engagement.

Low-cost handsets and increasing Internet penetration are some of the factors driving mobile commerce, or consumer shopping on mobile devices. e-Commerce providers such as Amazon (AMZN), eBay (EBAY), and JD.com (JD) are booking a growing portion of their sales on mobile devices.

Mobile commerce in China

China (MCHI) is one of the markets where the popularity of mobile commerce is growing rapidly. According to eMarketer, Chinese consumers could spend nearly $1.5 trillion on mobile commerce by 2019. As a result, mobile commerce is expected to claim 71.5% of the country’s total e-commerce sales and almost a quarter of the country’s overall retail sales by 2019, as illustrated in the chart above. Alibaba is positioning itself to ride the mobile commerce trend.

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