Alibaba: Between the Challenge of Chinese Statism and Hope in the Global Market

(By Taylor and Maurizio, with the collaboration of Maximiliano Mauvecin). In a more internal and competitive analysis, Alibaba, a giant that if it were in the USA, Ireland, Germany, El Salvador, or any free country, could today be among the top 3 strongest companies in the world. E-commerce is advancing rapidly, and Alibaba Group Holding Limited has become an iconic name. However, the recent turbulence in its finances and market performance has raised concerns among investors and analysts. As the company faces significant operational challenges, from the slowdown of e-commerce in China to uncertainty in its international expansion strategy, it is crucial to understand the current context and future implications for this giant of digital commerce.

Image description

Summary and Tips IN

 

  • IG: @infonegociosmiami

 

This article explores five key challenges that Alibaba currently faces: the stagnation of e-commerce in China, the weak growth of its cloud services, the sustainability of its international expansion, the withdrawal of the IPO from its logistics division, and the increase in its market multiples.

Key Challenges for Alibaba

  1. E-commerce Performance in China: A Worrying Growth

The e-commerce segment in China, which includes platforms like Taobao and Tmall, is the main revenue generator for Alibaba. However, its performance has been disappointing. In the last quarter of fiscal year 2024, the company reported only 4% growth compared to the previous year, reflecting a decline from the 6% growth in the first nine months of the same year. This stagnation occurs in a context where competition, especially from companies like PDD Holdings with its Temu platform, intensifies, making it even harder for Alibaba to regain its momentum.

  1. Cloud Services: Stagnant Growth Despite Incentives

Despite efforts to incentivize the use of its cloud services, including price reductions on over 100 products, Alibaba has not seen a significant increase in sales. Revenue growth from its Cloud Intelligence Group remained at a modest 3% during the last quarter of FY24. Although the company has expressed its intention to prioritize high-quality revenue and AI-related products, the lack of improvement in EBITDA margins raises questions about the effectiveness of this strategy.

  1. International E-commerce: Can Growth Be Sustained?

 

 

Alibaba's international segment, which includes its international digital commerce unit, has shown impressive growth of 46%. However, this growth raises questions about its sustainability. Trade tensions between China and the United States, along with concerns about labor practices and national security, could limit Alibaba's ability to expand into Western markets. The recent decision not to spin off its cloud services division also reflects a cautious strategy in the face of an uncertain international environment.

  1. Logistics: The Withdrawal of the Cainiao IPO

Alibaba's logistics division, Cainiao Smart Logistics Network, has also experienced healthy revenue growth of 28%. However, the recent cancellation of its IPO has generated concern. Although it was justified as a measure to foster synergies with the e-commerce division, the reality is that this decision could be related to an unfavorable market environment and the pursuit of a better valuation in the future. Such changes in the company's structure could indicate a lack of clarity in Alibaba's overall strategy.

  1. Market Multiples: An Uncertain Landscape

Although Alibaba's market multiples appear competitive compared to five-year averages, the recent increase in its price-to-earnings (P/E) ratio raises questions. With a 96% contraction in net income in the last quarter of FY24, and an expectation of a decrease in earnings per share for FY25, analysts are cautious. If current trends continue, Alibaba's multiples could lose attractiveness, further complicating its financial outlook.

Conclusion: An Uncertain Future

Despite Alibaba's efforts to communicate with its investors and offer a long-term vision, the current challenges are undeniable.

The company faces a complex environment, with financial performance failing to recover and an international strategy threatened by external factors, where the Chinese state has yet to take the step that all entrepreneurs in the country and the rest of the world hope it will take, towards freedom and respect for private and individual property.

This would not only enhance its leadership in quantitative terms but would also dramatically improve trust, relationships, experience, and ultimately, the most important aspects: the quality and value of its economy, empathy, and security in what is most decisive and meaningful for the human being—full freedom.

 

Registrate sin cargo, ahora, aquí.

Tu opinión enriquece este artículo:

Cantón 2025 como espejo del Comercio 2030: tres tendencias que redefinen el juego para el mercado global y local (parte III)

(Cobertura exclusiva desde China) La Feria de Cantón no es un supermercado gigante. Es una universidad de comercio global condensada en 15 días. Los importadores exitosos invierten tanto tiempo en observar tendencias, analizar competencia y entender procesos de fabricación como en negociar precios. Pero también, la importancia estratégica para occidente es crear el mega mundo de marcas, ya no de producto, sino de vivencias, experiencias, valor que Asia no puede generar en fábricas.

La Gran Feria del Dragón 2025: Cómo China reinventó el Comercio Global y Qué Significa para Miami y anglolatina. (Parte 1)

(Una serie de notas exclusivas cocreadas con Maximiliano Mauvecin, experto en comercio exterior, Esteban Bovo y Claudio Sanchez empresarios comerciales y productores latinos, desde China, junto con Maqueda y Maurizio) La Feria de Cantón 2025 y la Nueva Geopolítica del Retail: Lecciones para Emprendedores Latinos desde el Epicentro Manufacturero del Mundo, ¿por qué el mundo  hoy se divide en producción y en valor? ¿Qué aprovechar de China?¿Cómo competir con China?

La Gran Paradoja para Anglolatina: Cuando "Comprar en China" Deja de Ser la Respuesta (Parte 2)

(Cobertura exclusiva  desde China) El Descubrimiento Inquietante de los Importadores 2025 .La experiencia documentada por Nuve (empresa especializada en venta por nuevos canales de producto)  y el equipo de Infonegocios en Cantón revela una verdad incómoda que está sacudiendo al sector: muchos productos chinos ya están disponibles en Latinoamérica y Miami a precios competitivos, y algunos incluso más baratos que importando directo.

El Proyecto “Galáctico” 2026: Inter Miami busca blindar el arco para el año del Freedom Park (los nombres que suenan en Brickell)

(Por Ortega-Taylor) En el ajedrez estratégico del fútbol moderno, cada pieza cuenta. Y mientras Lionel Messi acapara titulares con su renovación hasta 2028, el Inter Miami ejecuta en silencio una ingeniería de plantel que podría redefinir los estándares competitivos de la MLS. La última ficha en ese tablero tiene nombre propio: Pedro Gallese, el guardameta de 35 años que defiende los colores de Perú y que actualmente milita en Orlando City, clásico rival de las Garzas.

(Tiempo de lectura: 4 minutos)

El contexto hiper competitivo: una MLS que no perdona (cuando fútbol es además real estate, marcas y crossing marketing)

(Por Taylor y Ortega, con Maurizio) Muchas cosas se han vuelto extremadamente competitivas en Miami. La MLS de 2026 no será la misma que recibió a Messi en 2023. La liga ha experimentado una metamorfosis competitiva acelerada: fichajes de alto perfil desde Europa y Sudamérica, inversiones millonarias en academias juveniles, y una infraestructura que cada vez se asemeja más a las grandes ligas del mundo.

(Tiempo de lectura: 4 minutos)

Desde China te contamos las dos grandes estrategias de todo negocio 2025-2030 en la era de la hiperproducción y saturación de mercado

Desde la Feria de Canton, un equipo de empresarios y analistas proponen esa clara visión. ¿Qué más necesitas para cambiar drásticamente el racional de tu directorio, de tus objetivos, de tu equipo de planificación, de tu disminuido, totalmente, área integral de marca, marketing, branding y comunicación?. ¿Tu foco ha sido vender? ¿Creas y expandes valor o eres un canal de venta de productos producidos en China?

(Tiempo de lectura alto valor estratégico: 4 minutos)

La Feria de Cantón 2025 y la hiper producción China, cómo competir en Miami y Anglolatina (parte IV)

(Una serie de notas exclusivas desde China, cocreadas con Maximiliano Mauvecin, experto en comercio exterior, Esteban Bovo y Claudio Sanchez empresarios comerciales y productores latinos, desde China, junto con Maqueda y Maurizio) Es un campo de entrenamiento estratégico donde los emprendedores latinos pueden aprender a navegar la complejidad del comercio global, identificar tendencias antes que se masifiquen, y construir las alianzas que determinarán quiénes prosperan y quiénes desaparecen en la próxima década.

(Tiempo de lectura alto valor estratégico: 4 minutos)