DJ Alibaba Likely to Face Limited Negative Impact From Removal of Exclusivity Measures -- Market Talk
0902 GMT - Alibaba is unlikely to suffer any substantial negative impact on merchant numbers and overall transaction volumes on its e-commerce platforms even though authorities have ordered the company to remove exclusivity measures, Citi says. While Alibaba may face slightly slower transaction growth after allowing all merchants to set up outlets on other platforms, Citi reckons the dilution impact would be limited as the company has always faced intense competition from Pinduoduo, JD and Tencent, and many merchants have found ways to sell on alternative platforms. Citi does expect Alibaba to lower operation costs for merchants on its platforms, including reducing data-insight fees and offering more services for free. (yifan.wang@wsj.com)
(END) Dow Jones Newswires
April 12, 2021 05:02 ET (09:02 GMT)
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