'Singles Day' generates billions in profits in China

Chinese customers spent billions of dollars during the country's annual "Singles Day" Monday, the world's largest 24 hours shopping event, started by US megastar Taylor Swift.

E-commerce giant Alibaba said the first $ 1 billion spend on its platforms was reached in just 68 seconds.

Total gross merchandise volume settled through the Alipay payment platform reached 100 billion yuan (14,3 billion) in 63 minutes and 59 seconds - 43 minutes ahead of last year's pace.

The promotion, now in its 11 year, started early, with Chinese bargain hunters buying everything from electronics to clothing and household goods via Alibaba and other competing platforms.

The event is considered a useful annual indicator of consumer sentiment in the world's second largest economy.

China is in the midst of a long-term slowdown, exacerbated by the trade war with the United States, but retail sales remained a plus.

Single Day, also called “11.11” for the date it is held, was originally set aside as an unofficial day for Chinese singles.

Alibaba kicked off the event with a flashy gala show in Shanghai, led this year by US Grammy-winning star Swift, which counted until midnight shopping began.

But Alibaba, based in the eastern city of Hangzhou, joined it a decade ago as a shopping promotion similar to Black Friday's fall in retail in late November.

Other online platforms and Chinese retailers also took advantage.

Capitalizing on Chinese consumer e-commerce and smartphone one-click payments, it proved to be a success, with Alibaba regularly beating its own sales volume mark.

The total count of 24 hours last year was $ 30,7 billion, another record for Alibaba, but the pace of growth has slowed from previous years.

US-listed Alibaba earlier this month said the company's sales revenue remained robust in the most recent quarter ending September's 30, but this growth slowed to 40% compared to 54% in the same quarter of the year. past.

This year's Singles Day is Alibaba's first without co-founder Jack Ma.

Ma stepped down as leader of the Alibaba Group in September after 20 years when the former English professor's e-commerce company helped boost Chinese consumer power.

Today Alibaba has more than half of the domestic e-commerce market and is among the most valuable companies in the world.

The company expects to raise up to $ 15 billion in an initial public offering in Hong Kong, a report said last week, which would be the city's largest listing in nine years.

Environmentalists, however, accuse Alibaba and other e-retailers of feeding a culture of overconsumption and increasing the growing national waste spillover problem, as 11.11 deliveries create mountains of discarded packaging.

Source: AFP

Leave a Comment

Your email address will not be published. Required fields are marked with *

This site uses Akismet to reduce spam. Learn how your feedback data is processed.