Financial analysts believe the results of Alibaba Group Holding Limited's report for the first fiscal quarter of 2016 will have a huge impact on China's declining economy.
According to Wall Street Pit, the company will unveil its earnings report this week and is expected to show an increase in earnings per share by $0.58 to $0.61. Last year, Alibaba reported a rate of $0.49.
But, just like in last year's quarterly earnings report, financial analysts believe the company will surpass expectations and present higher revenue figures. This is Alibaba's ideal goal since some experts feared that China's disappointing economic status could pull down the company's growth rate.
As reported by Bidness ETC, low consumer spending has caused China's Economy to fall to its slowest growth rate within the last two decades.
Being an e-commerce giant, Alibaba's growing revenues and rising financial status could help its home country rebound from the current economic slump. According to analysts, a high revenue figure and improving earnings per share rates will ease the minds of Alibaba's investors.
With their trust in the company strengthened, Alibaba can then further support its various subsidiaries within China's retail sector. Hopefully, this will also boost consumer spending and begin the recovery of the country's economy.
Aside from its quarterly earnings report, Alibaba is also focused on creating a new business model through its partnership with Suning, a chain of electronic stores in China.
Using Alibaba's online retail system and Suning's physical establishments, the partners aim to launch a new way to accommodate the needs of China's consumers, BBC reported.
"Over the past two decades, e-commerce has become an inextricable part of the lives of Chinese consumers, and this new alliance brings forth a new commerce model that fully integrates online and offline," Jack Ma, CEO of Alibaba said in a press statement.
Under the new business model, consumers can visit Suning's display stores to check out a certain product. If they are satisfied with its quality and other features, they can purchase it through Alibaba's website.
The item will then be delivered to the buyer within two hours using the logistics system of Suning.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
