Alibaba.com [BABA:US] is hosting an online global trade show from May 11 to May 24 to help coronavirus-hit merchants reach an estimated 200,000 wholesalers each day, as reported by China.org on May 12. The platform will implement a “perfect matching” system using big data to group up buyers with sellers before matching them, which will improve efficiency and protect intellectual property. According to Zhang Kuo, general manager of Alibaba.com, this will be the first of 20 such exhibitions to be held this year to aid small businesses amidst global lockdowns.
In November 2019, the firm saw a successful secondary listing on the Hong Kong Stock Exchange [0388:HK] as it became the world’s second-largest offering at USD12.9bn. Total revenue for the quarter ended Dec 31, 2019, came to USD23bn, an increase of 38% YoY. Although China’s foreign trade in the 1Q20 fell 6.4% YoY, Alibaba.com’s April sales rose 86.3% YoY as merchants relied more on the internet to conduct trade. The firm has also launched Luxury Soho, an online platform targeting Chinese spenders that account for more than a third of global luxury spending, according to Reuters on May 6. Although Chinese shoppers have previously made more vanity purchases abroad, pent-up demand as the virus recedes is expected to drive domestic luxury spending. LMVH [MC:FP] reported a 50% YoY increase in sales in April, while Hermes [RMS:FP] reported USD2.7m in opening day sales from its Guangzhou outlet, the biggest daily haul for a boutique in China.