There Goes The Chinese Consumer: Alibaba Is Latest Company To Warn About Slowing Growth

Hours after the Wall Street Journal published a story speculating about who would be next to upend an equity rally with a warning about faltering sales in China (after Apple's quarterly revenue guidance cut rattled  markets during the opening days of the year) - citing Starbucks, Nike, Texas Instruments and a host of chipmakers and luxury retailers as potential culprits - the answer has arrived perhaps more swiftly than the paper's editors had expected. And the answer is: None of these.

(Click on image to enlarge)


As it turns out, the latest warning about "near-term headwinds" in the Chinese market comes from a company that's so deeply interwoven into the fabric of the Chinese economy, even the hint of a sales slowdown should be enough to trigger anxieties about slowing global growth - even as its CEO tries to put a positive spin on things. And that company is: Alibaba.

According to a separate story published by WSJ Monday afternoon, as the ramp in equities spurred by Trump's positive trade talk faded into the close, the president of the Chinese e-commerce giant reportedly said during a presentation at the National Retail Federation's trade show in New York that he's still confident in the long-term potential of the Chinese economy despite data showing a deepening slowdown.

"This is a market that requires patience," Alibaba President J. Michael Evans said in a presentation at the National Retail Federation’s annual trade show in New York on Monday. "But if you think about where the country is going in the long-term…The future I think looks very good, notwithstanding some troubling headwinds."

As WSJ reminds us, Alibaba, whose Taobao and Tmall marketplaces are some of the most widely used e-commerce platforms by Chinese consumers and merchants, cut its full-year revenue forecast by 4% to 6% back in November over concerns about the slowing Chinese economy's impact on sales growth, as well as the possibility that the burgeoning trade war could also hurt sales.

1 2 3
View single page >> |

Disclosure: Copyright ©2009-2018 Media, LTD; All Rights Reserved. Zero Hedge is intended for Mature Audiences. Familiarize yourself with our legal and use policies every time ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.