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Beijing – Alibaba, Tencent and JD.com reported income this week, which not only reflected the improvement of Chinese consumer expenses, but also the growth of artificial intelligence in advertising.
Giant e -commerce Alibaba said at the end of Thursday that his group Taobao and Tmall Sales have grown by 9% From year to year to 101.37 billion yuan ($ 13.97 billion) in three months, which ended on March 31. This is above 97.94 billion yuan, a projected FactSet analyst, and a quarterly growth rate was much higher than 3% of the segment increase over the 12-month period, which ended on March 31.
“E-commerce and advertising revenues were positive surprises, as tariffs would affect consumer behavior,” said the Asia Market Strategist.
It is important to note that the profit issues cover only the period before US tension in China increased with new tariffs in more than 100% on the products of both countries-effective trade embargo. Both countries have issued A rare joint statement on Monday Announcing the reduction of 90 days in most recently added tariffs.
Since April, the US and China trade dispute has affected the consumption, given the increase in the uncertainty for small and medium -sized businesses, Charlie Chen said on Friday, director and head of Asian research in China Renaissance Securities. He expects that, as the trade tensions, the consumption will grow.
But despite insufficient consumption overall, sales of certain electronics and home appliances have done well from last year thanks to China Trade subsidies for supporting such consumer expenses.
Jd.com On Tuesday stated their sales For this category increased by 17% compared to a year ago. Overall, e -commerce announced an increase in revenue increased by 16.3% of its retail business to 263.85 billion in three months, ending on March 31. It was better than 226.84 billion yuan in the retail segment, a predicted FactSet survey.
On Wednesday, Favorable He said his segment “Fintech and Business Services”, which is rushed to consumer business operations, reported about 5% of up to 54.9 billion in the first quarter a year.
While Nomura’s analysts said the growth of the segment’s revenue was in line with the assessment, they noted in the note that “ADS tencent was a great excellence in the Chinese advertising industry, despite the complex macro -public.”
Tencent marketing revenues increased by 20% to 31.9 billion yuan, which helped “reliable demand for advertisers” for short videos and other content in its WeChat app on social media. Tencent noted “Permanent Modernization of AI” on its advertising platform.
AI increases advertising
AI helps TENCENT raise its rate-on-measures for online advertising-to almost 3%, said the company’s call company on Wednesday, FACSET transcript reports. This is dramatically compared to 0.1% pressing the banner ads historically, and about 1% for channels, the company reports.
Combined monthly users for WeChat, known as Weissin in China, first exceeded 1.4 billion. The app offers one of the two major mobile payment systems used in mainland China.
Many coffee shops and online shops also use mini-app in WeChat for customers to place orders. Tencent said on Thursday that his e -commerce operations had grown so large that it was now a new WeChat unit.
“AI ADS increases the efficiency and algorithm that should lead to better targeting consumers, even if macro conditions are not optimal,” said van Morningstar. “A little more early to quantify how additional AI benefits are compared to AI AI, but we have seen a certain monetization with AI-driven advertising.”
The JD said its marketing revenues increased by 15.7% to 22.32 billion yuan per quarter, also partially attributed to the rise to AI tools.
Calling profits on Tuesday, JD Management said its advertising and development group uses large language models to improve advertising conversion levels and accelerating advertising revenue. The company added that it sells AI tools that allow sellers to “perform complex advertising campaigns” with a simple team.
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Advertisers have long been looking for ways to focus on consumers, which will most likely make a purchase.
On Wednesday, YouTube announced that advertisers can use the Google’s Gemini AI model to target the audience If they are most engaged in video.
Alibaba noted that the marketing profit, which it calls “customer management”, increased by 12% a year to almost $ 10 billion due to the partially increase in the use of AI Company to improve the efficiency of marketing sellers, Qanzhantui.
Undefined perspective
However alibaba’s overall Profit was only about half of what analysts predictedSending shares for almost 7.6% at the next US trading session.
China intends to release retail data for April on Monday. Analysts surveyed by Reuters predict an increase in retailers by 5.5% compared to last year in April, slightly dropped from Growth by 5.9% in March.
Morgan Stanley poll from April 8 to April 11, conducted immediately after escalation in US-Kitai tension, showed that consumer confidence decreased to 2.5-year-old, and 44% of respondents were concerned about the loss of work and high since 2020 when the survey began. Only 23% of consumers expect to spend more in the next quarter, found a survey that at 8 percentage points compared to the previous quarter.
In April, there is insufficient demand for domestic demand, with a fall of consumer price index by 0.1% compared to last month or third month. However, eliminating food and energy prices, the so -called basic IPC increased by 0.5%, the same rates as in March.
Because the real estate market will not yet recover, and exports are limited by geopolitics, Chen expects Chinese politicians to focus on raising consumption to reach a year’s growth of about 5%.
He expects the relevant stimulation policy involves increasing food and drink expenses, care, travel, sports and strong goods that are not yet included in the trade subsidies.
On June 18, the next major advertising season for shopping in China is celebrated.
“I think we will get pretty good 618. Now, obviously, we are no longer dealing with 30% growth a year as we were in the first 10 years” Festival of Commerce, Jacob Cook, Co -founder and CEO of WPIC Marketing + Technologies, CNBC said Earlier this week. The company helps foreign brand – for example, Vitamix and is clinical – selling online in China and other parts of Asia.
He predicts that the 618 sales growth will increase by “very two -digit”.
