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Alibaba has a much bigger problem than the crackdown on technology

Alibaba's struggle is borne out in the numbers. Revenue for the three months to December climbed just 10%, compared with 29% growth the prior period

The logo of Alibaba Group is seen at its office in Beijing, China

The logo of Alibaba Group is seen at its office in Beijing, China

Tim Culpan | Bloomberg Opinion
Alibaba Group Holding Ltd.’s slowest quarter on record comes amid a prolonged crackdown on China’s major technology companies. It’s easy to conflate the two.
But the increased regulatory burden is overshadowed by even harsher problems. Chief among them: peak customer. It’s a reminder that the country’s burgeoning middle class is no longer easy pickings for high-flying companies with ubiquitous platforms.

“We believe we have substantially captured all consumers with purchasing power in China,” Chief Executive Officer Daniel Zhang told investors late Thursday. “We’ll focus on a shift from new-user acquisition to user retention and [average revenue per user] growth.” The

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First Published: Feb 25 2022 | 8:13 AM IST

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