STORY: Alibaba’s first-quarter revenue missed market expectations on Thursday (August 15).
The Chinese giant reported revenue of just under $34 billion for the quarter ended June 30.
Domestic e-commerce sales came under pressure from cautious spending by consumers.
Alibaba’s home market has undergone a halting economic recovery.
Chinese consumers have seen spending power hit by a persistently weak property market and high job insecurity levels.
Alibaba also faces tough competition from rivals including JD.com and discount-focused retail platforms like Pinduoduo.
Revenue at the firm’s domestic e-commerce arm fell 1%, despite seeing a double digit rise in the number of buyers and their purchase frequency.
Chinese e-commerce giants have resorted to heavy discounting and promotions to attract shoppers.
But the tactic has pressured margins across the retail sector.
In June, sales at China’s mid-year e-commerce sales festival fell for the first time ever according to third party estimates.
That was despite efforts by major platforms to give out offers for an extended period to win consumers.
Alibaba executives have said in recent quarters that bigger purchasing and the introduction of new tools for merchants will increase advertizing, and customer management revenue to the platform in the future.
U.S.-listed shares of Alibaba reversed earlier losses to rise about 2% in early Thursday trade.
