Alibaba has only 20% of active buyers in China. Growth potential seems arithmetically simple. The first 20% is the hardest incrementally profits will continue as scale is realized.
Approximately 70% of Chinese internet shoppers born in the 1990s consider Taobao as their first online shopping destination. Loyalty and user habit may suggest a lifetime of potential transactions ahead.
Alibaba is structurally well positioned to profit from B2B to C2C. This will be revolutionary as the Chinese economy grows and matures.
George Gutowski writes from a caveat emptor perspective.