Alibaba Group’s Chief Strategy Officer, Zeng Ming, told reporters on Saturday, September 8 that his firm is forecasting their sales to exceed those of both Amazon and eBay combined. China’s largest ecommerce seller has been growing at break neck speed over the years. The company’s forecasts for the next 5 to 7 years show that they intend on achieving $473 billion (3 trillion yuan) in sales from AliBaba’s Taobao units.
Since there are no concrete figures of how much the Taobao units of Ali Baba are worth, there is little exactitude in knowing what percentage of the overall business mix it represents for the Chinese company. However, last year Jack Ma, the creator of Ali Baba, stated that the value of transactions for the Taobao units in 2012 would touch 1 trillion yuan. Whatever part the Taobao section plays in Alibaba Group’s overall profits it is quite clear that it is a major contributor and a source of pride for the company.
The Chief Strategy Officer did not go into too much details about how his form would outpace America’s largest e-commerce seller and auction site but he did say that, “From their annual reports we did a rough calculation and we were similar last year but we are growing faster than them this year, so this year we are probably larger than them. The gap is just going to get bigger and bigger when we grow faster.”
Ali Baba has found itself in the news a lot lately because of the stop and go negotiations with Yahoo to buy back shares. The talks were finally concluded in May after two years and Ali Baba has successfully minimized the votes of foreign companies in its business. The US based Yahoo Inc and Japanese Softbank Corp. will play reduced roles as Ali Baba tries to keep control of its business private.
Source: Reuters
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