Alibaba's Taobao Tmall HK Allocates 1 Billion Yuan for Double 11 Free-Shipping Campaign

Alibaba's Taobao Tmall has earmarked 1 billion yuan for a free-shipping push ahead of the Double 11 shopping festival. The company aims to boost sales and competitiveness in the e-commerce market. This move comes as the Chinese e-commerce market faces increased competition from other online retailers.

Alibaba's e-commerce arm, Taobao and Tmall, has announced a significant investment of 1 billion yuan in a free-shipping initiative aimed at boosting sales during the upcoming Double 11 shopping festival. This move comes as the Chinese e-commerce market faces intense competition from other online retailers, and a Goldman Sachs report has raised its target price for Alibaba (BABA.US) to $205, expressing optimism about Alibaba Cloud amid breakthroughs in multimodal AI models.

The initiative, which is part of Alibaba's broader strategy to enhance its market competitiveness, is expected to provide a substantial boost to consumer spending and market share. By offering free shipping, Alibaba aims to attract more customers and increase the overall volume of transactions on its platforms.

Goldman Sachs, in a recent research report, has raised its target price for Alibaba's stock, reflecting the firm's optimism about the company's growth prospects. The investment bank has increased its 12-month target price for Alibaba (BABA.US) from $179 to $205 and for Alibaba (09988.HK) from HK$174 to HK$199. This adjustment is based on stronger visibility in profitability within Alibaba's e-commerce foundation and its international cloud growth potential.

Goldman Sachs also highlighted the importance of Alibaba's leadership in AI + daily consumption (Taobao + AutoNavi) and AI + hyperscale cloud operations. The firm's framework to evaluate the growth outlook for AI cloud has led to increased revenue growth forecasts for Alibaba Cloud for fiscal years 2026 to 2028, respectively.

The free-shipping push is part of Alibaba's broader strategy to leverage its strengths in AI and cloud services to drive growth and maintain its leadership position in the e-commerce market. This move is particularly timely given the increased competition and the need for innovative strategies to attract and retain customers.