In the fiscal year ending March 31, 2016, the Alibaba Group’s annual revenue amounted to 101 billion yuan (approximately 15.69 billion U.S. dollars) with a net income of 24.32 billion yuan (3.73 billion U.S. dollars). The majority of group revenues are generated through its various e-commerce ventures with local e-commerce accounting for 83 percent of Alibaba’s income in fiscal 2016. As of the second quarter of 2016, the group generated an online shopping gross merchandise volume of 837 billion yuan through its online shopping properties Taobao Marketplace, Tmall and Juhuasuan; with the cumulative number of active online buyers across these properties amounting to 443 million.
The current digital buying penetration rate among internet users in China is close to 70 percent. The increasing usage of mobile internet has opened up the possibilities of mobile shopping for both consumers and e-tailers. Alibaba has seen a rapid growth of mobile usage on its online shopping properties with a 75 percent mobile share of gross merchandise volume, up from 55 percent in the previous year. The overall share of mobile shopping revenues was 75 percent as of the third quarter of 2016 with a 2.8 percent mobile conversion rate.