The Chinese online retailer will probably reach a market value of over $ 1 trillion in less than a decade, according to one of its early investors.
Although the Amazon competitor is currently “only” about 440 million US dollars worth, but Alibaba is still far from its peak.
According to “Bloomberg”, this opinion is at least shared by John Ho, founder and Chief Investment Officer of Janchor Partners Ltd, a fund that has been involved in Alibaba since 2012 .
John Ho explains his optimism by saying that Alibaba has just begun to realize the potential of its extensive customer and user data. Finally, Alibaba has access to a wealth of information about its customers thanks to its purchasing, food delivery, bike rental, video and Alipay payment services platforms.
Purchases in the retail business
In recent weeks, however, Alibaba has lost about 30 billion in stock market value. What deters investors was two billion retail acquisitions in particular, which weighed on the Group’s profit margins. However, Alibaba defended the acquisitions by seeking new sources of revenue.
In any case, the Hong Kong-based Janchor Fund is among those who are convinced of the future prospects of Alibaba. According to “Bloomberg” also believes the majority of analysts to the success of the Chinese group. For example, 48 analysts gave a “buy” rating and only one analyst gave a “hold” rating.
Foray into food market
The online retailer is also working to revolutionize the food market. On the one hand, it enters into partnerships with established retailers and, on the other hand, establishes its own new hybrid businesses. For example, customers of Alibaba’s Hema chain at the register can identify themselves by face recognition and then leave the store without goods. The purchases are then delivered directly to your home.
Three years after the start, the Hema businesses still write small losses. Wai-Chan Chan, an analyst at management consultancy Oliver Wyman, is convinced, according to “Bloomberg”, that with a little more time and an increasing volume of business, “break even” can soon be achieved. Because even Chan sees the key to success in Alibaba’s extensive information on consumer behavior.