Alibaba, JD boom in sales during Singles’ Day

Alibaba, JD boom in sales on Singles’ Day, stocks “dark blue”

Both Alibaba and set new sales records on their platforms during Singles’ Day, the biggest shopping event in the world.

A screen showing the value of shopping transactions during Singles’ Day 2019 in Hangzhou, China. Photo: AFP/VNA

Shares of Alibaba and JD Trading on Hong Kong Exchange are all “dark green” in this morning session 12/11. While Alibaba stock recorded a gain of about 1%, JD stock jumped more than 5% early in the session.

Alibaba and JD both posted record sales during this year’s Singles’ Day holiday, despite concerns about the consumption power of the Chinese market shrinking due to Beijing’s recent tightening of regulations on foreign brands. technology company.

Singles’ Day was originally meant to be a flash with 24-hour sales, but it was amplified into a multi-day shopping festival that ended at midnight on 11/11.

JD has activated the Singles’ Day sale since the end of October, and Alibaba has also made a similar move since the beginning of November. The extension of the Singles’ Day shopping program has helped these two e-commerce groups. increase sale revenue.

Total amount of goods (GMV) transacted through the system of Alibaba in the past 11 days was worth 540.3 billion yuan ($84.54 billion), up more than 8% from last year’s 498.2 billion yuan. And the trading volume on the platform JD totaled 349.1 billion yuan ($54.6 billion), up 28% year-on-year.

The two figures for total merchandise and transaction volume above do not translate into direct revenue for JD and Alibaba, and do not account for returned items. These numbers show the booming online shopping power of Chinese consumers despite the Covid-19 pandemic.

Regarding this year’s Singles Day shopping trends, JD said purchases of luxury products and pet-related goods have increased sharply, alongside Apple products. Specifically, iPhone transactions through JD platform surpassed 100 million yuan within 2 seconds after the last sale of November 10 started.

Both Alibaba and JD recorded a stronger increase in online sales from smaller Chinese cities this holiday season, and this is also a key market that the two groups aim to develop the platform. client.

JD said, Users from small cities, or lower-end markets, make up 77% of all Singles’ online shoppers. According to the e-commerce platform, the lower tier markets have “rapid consumption growth” for household appliances, medicines, and home decor.

As for Alibaba, when the Singles’ Day sale was activated on November 1-3, spending in small-sized cities and rural areas increased by nearly 25% compared to last year. .

Alibaba and JD also highlighted social-environmental responsibility during this year’s Singles’ Day, a move that is said to be in line with Beijing’s priorities.

“During this year’s 11/11 global shopping festival, we fostered steady growth and quality, reflecting China’s dynamic consumer economy,” said Yang Guang, Alibaba Vice President. price. Alibaba representative added that they have taken advantage of the power of the 11/11 Singles Day as a platform to carry out social responsibility. This year’s singles celebration is a significant milestone, part of Alibaba’s commitment to building a sustainable future.

Meanwhile, JD said that during this year’s Singles Day, they have reduced 26,000 tons carbon emissions compared to last year.