Alibaba releases 2022 annual financial report, Lazada is the main source of income for international business

On July 26, Alibaba released its 2022 fiscal year report. Alibaba’s fiscal year is different from the domestic fiscal year. The 2022 year refers to the period from early April 2021 to the end of March 2022.

The financial report shows that during the reporting period, Alibaba's total revenue was 853.062 billion yuan, and international business revenue was 61.078 billion yuan, accounting for only 7% of the total revenue. Alibaba's international business is mainly divided into two categories: international retail business and international wholesale business. Among them, international retail business revenue was 42.668 billion yuan, a year-on-year increase of 24%; international wholesale business revenue was 18.41 billion yuan, a year-on-year increase of 28%.

Alibaba's international retail business includes Lazada, AliExpress, Trendyol and Daraz. Lazada is the leading and fastest-growing e-commerce platform in Southeast Asia; AliExpress allows global consumers to purchase goods directly from manufacturers and distributors in China and around the world; Trendyol is the leading e-commerce platform in the Turkish market; Daraz is the leading e-commerce platform in South Asia, with major markets including Pakistan and Bangladesh. The main reason for the growth in international retail business revenue is the growth in revenue from Lazada.

According to the financial report, Alibaba had approximately 1.31 billion annual active consumers worldwide in the 12 months ending March 31, 2022. Among them, the four platforms of AliExpress, Lazada, Trendyol and Daraz served a total of 305 million annual active consumers overseas during the reporting period, and the overall order volume increased by 34% in fiscal 2022.

In terms of details, in March 2022, Lazada exceeded 1 million monthly active sellers. In fiscal year 2022, the number of paid orders of Lazada increased by 60% year-on-year; in fiscal year 2022, due to the EU's cancellation of the VAT exemption for cross-border parcels below 22 euros in July 2021, and the supply chain and logistics disruptions caused by the Russia-Ukraine conflict, AliExpress's order growth remained flat.

Trendyol continued to grow rapidly during this reporting period, with orders increasing by 68% year-on-year and GMV in local currency increasing by approximately 80% year-on-year.

In the global wholesale business segment, Alibaba owns Alibaba.com, China's largest comprehensive foreign trade online wholesale trading platform , providing various services between suppliers from China and around the world and overseas wholesale buyers.

As of March 31, 2022, Alibaba.com has more than 245,000 paying supplier members in China and around the world. Sellers can also manage product catalogs and complete transaction processes by purchasing value-added services, such as upgraded store management tools, CRM SaaS services, P4P marketing services, trade guarantees and fulfillment services. During the reporting period, value-added services accounted for a major part of Alibaba.com's total revenue. In addition, in fiscal 2022, more than 40 million buyers from more than 190 countries sought business opportunities or completed transactions on Alibaba.com.

The main reasons for the growth of Alibaba's international wholesale business are the increase in the average income of paying members on the Alibaba.com platform and the increase in the number of paying members, as well as the growth in revenue from value-added services related to cross-border business.

Under the influence of the epidemic, more and more people around the world are accustomed to shopping online, and the types of products they buy are becoming more and more diverse. Online transactions hold huge opportunities for both China and the entire global consumer market. Regarding future development, Alibaba clearly pointed out in its financial report that globalization is one of the three major strategies for future development, and it will continue to actively participate in the competition in the international market.

Alibaba

Lazada Platform