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China: Singles’ Day sales

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At the 11/11 Singles’ Day online shopping event, JD.Com and Alibaba platforms set new sales records. The record sales came despite concerns over the power of the Chinese consumer and the impact of Beijing’s pressures on tech companies. It is positive in the sense that it helps both companies continue to increase their sales.

 

Alibaba said its gross merchandise volume (GMV) over the 11-day period totaled 540.3 billion yuan ($84.54 billion), an increase of more than 8% from last year’s 498.2 billion yuan. JD said that during Singles’ Day, the trading volume on its platform was 349.1 billion yuan ($54.6 billion), a 28% increase from 271.5 billion yuan recorded last year. GMV and transaction volume do not reflect direct revenue for JD and Alibaba, nor are returned items taken into account. The numbers relate to the trading volume on both platforms. However, Chinese consumers are showing their appetite to shop on the e-commerce giants’ platforms. On the other hand, we see strong sales for Apple as well, as JD said that the transaction volume of iPhones exceeded 100 million yuan 2 seconds after the last sales started on November 10. Selling well in the Chinese market is impressive in the context of Apple domination, this is already in the process of technological transformation.

 

Singles’ Day appears to lag slightly behind previous years in both numbers and rates as Chinese tech companies continue to face scrutiny from regulators and President Xi Jinping is pushing for so-called “common prosperity.” On the other hand, on the other hand, it can be evaluated positively in terms of the consumer’s appetite for purchase.

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