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