By the end of the fiscal year of 2020, Alibaba aims to achieve a gross merchandise volume (GMV) of $1 trillion. Along with this forecast the Chinese e-commerce giant also intends to create 100 million jobs and serve 2 billion customers. The latest trend of new retail, the integration of online and offline commerce, is the niche market Alibaba has positioned itself in as an innovator and enabler.
Alibaba evolved beyond its China e-commerce roots by moving into digital media and entertainment, cross-border e-commerce, local services, digital marketing and other areas. They are enabling merchants and brands to manage consumers during their entire life cycle, from when they became aware and interested in products, then purchase and into loyalty.
The company’s last fiscal year generated nearly $550 billion in gross merchandise volume, of the total value of sales on its marketplaces. If GMV were GDP, that would make Alibaba the 22nd-largest economy globally, just behind Argentina. As for FY 2018, the guidance forecasting revenue growth of 45 percent to 49 percent could be a very realistic prediction.
Over the past two years, Alibaba has put $21 billion worth of its capital toward mergers, acquisitions and investments, to remain at the top of their game. The Chinese market certainly knows how to maintain its customer base to ensure maximum lifelong profitability.