In this photo taken Sunday, Nov. 10, 2019, shoppers react after taking part in a promotion ahead of Nov. 11 Singles day in Beijing. Chinese online shoppers hunt bargains on Singles Day, a holiday invented in the 1990s that has become the world’s busiest day for online commerce. (AP Photo/Ng Han Guan)

China’s Alibaba, JD report booming Singles Day sales

The creators picked Nov. 11 because the date is written with four singles

Chinese e-commerce giants Alibaba and JD.com reported more than $60 billion in sales Monday on Singles Day, an annual marketing event that is the world’s busiest online shopping day.

The day was a temporary relief to retailers that face fading demand as Chinese consumers tighten their belts, anxious over slowing economic growth and the tariff war with Washington.

University students created Singles Day in the 1990s as an alternative to Valentine’s Day for people without romantic partners. Alibaba adopted it as a marketing tool a decade ago.

Rivals including JD.com, China’s biggest online direct retailer, and electronics seller Suning joined in. The tactic has caught on in other Asian countries, too.

The creators picked Nov. 11 because the date is written with four singles — “11 11.”

On Monday, retailers offered discounts on goods from smartphones to craft beer to health care packages.

“Yesterday night, I was browsing past 11 p.m. Many of my friends around me were staying up till 2 a.m. to buy stuff,” said Zhu Yirun, a graduate student in Beijing.

Alibaba said sales by merchants on its platforms had risen to 255.2 billion yuan ($36.5 billion) by 11 p.m. after passing last year’s full-day total of $30.8 billion before 6 p.m. JD.com reported sales of 179.4 billion yuan ($25.6 billion) by mid-afternoon.

Alibaba kicked off the event Sunday night with a concert by Taylor Swift at a Shanghai stadium.

E-commerce grew rapidly in China due to a lack of traditional retailing networks and government efforts to promote internet use. The country has the biggest online population with more than 800 million web users.

Alibaba, JD.com, Baidu and other internet giants have expanded into consumer finance, entertainment and offline retailing.

Monday was Alibaba’s first Singles Day since its founder, Jack Ma, stepped down as chairman in September. He stayed on as a member of the Alibaba Partnership, a 36-member group with the right to nominate a majority of the company’s board of directors.

E-commerce has created some of China’s biggest fortunes.

Ma, 55, is China’s richest entrepreneur with a net worth of $39 billion, according to the Hurun Report, which tracks the country’s wealthy.

Colin Huang of Pinduoduo was No. 7 on Hurun’s list at $19 billion. Zhang Jindong of Suning was No. 15 at $14 billion and Richard Liu of JD.com was No. 28 at $11 billion.

Last year, Alibaba reported Singles Day sales of 213.5 billion yuan ($30.8 billion), or more than 13 times its daily average of about 16 billion yuan ($2.3 billion).

Suning said sales of smartphones and other electronics passed 1 billion yuan ($160 million) in the first minute after midnight. The company said later sales were up 86% over 2018’s Singles Day but gave no total.

Dangdang, an online book retailer, said it sold 6.8 million copies in the first hour.

Chinese online spending is growing faster than total retail sales but also is weakening as economic growth decelerates. Growth declined to a multi-decade low of 6% over a year earlier in the quarter ending in September.

Online sales of goods rose 16.8% over a year earlier in the first nine months of 2019 to 5.8 trillion yuan ($825 billion), according to official data. That was more than double the 8.2% growth rate for total consumer spending but down from an average of about 30% in recent years.

E-commerce made up 19.5% of Chinese consumer spending, compared with about 11% of spending for American consumers.

Yang Wei, a migrant worker in Beijing, planned to skip the online rush.

“I feel like the difference (in price) is not that big, and since everyone’s buying all at once, the logistics and delivery are slower,” said Yang. “I think that it’s actually better for me to buy when not everyone’s buying.”

Joe McDonald, The Associated Press


Like us on Facebook and follow us on Twitter.

Just Posted

Greater Victoria sees lowest rainfall numbers for November in decades

Only a third of the expected rainfall was seen across the Capital Region

West Shore sees drop in traffic violations

The 315 violations in first six months of the year represent a 42 per cent decrease from 2018

Cloudy with a chance of showers ahead for Thursday

Plus a look ahead at the weekend’s forecast

Study on Malahat road closures expected by end of year

‘Vancouver Island traffic is like an hourglass,’ says vice-chair of CRD Traffic Safety Commission

More than a million square feet of rental units proposed for downtown Victoria development

The Harris Green development proposed to take over two large lots on Yates Street

VIDEO: A brief history of bumps in the Trudeau-Trump relationship

Remember Peter Navarro saying ‘there’s a special place in hell’ for a foreign leader who aims to cheat?

11 Sooke events to get you into the holiday spirit

From a Santa parade to classicial music, Sooke has it all

Half of shoppers say they have no holiday spending budget

B.C. consumers surveyed estimate they will spend $921 this season

Opening day delayed at Mount Washington

Dec. 6 was set as opening day but will now be delayed due to lack of snow.

Province begins forfeiture of Shawnigan contaminated soil site

The forfeiture proceedings do not impact the closure plan for the landfill site

Man killed in crash due to ‘absolutely treacherous’ conditions on Coquihalla

Winter means icy roads are dangerous and drivers should be careful, RCMP say

Former Burns Lake mayor gets two years for sexual assaults against minors

The Crown is seeking four to six years federal time; the defence wants 18 months in provincial jail

Bag of cocaine left in Vancouver Island grocery store aisle

RCMP: ‘We sure would like to talk to’ person who left drugs behind

RCMP officer was justified using hose in rooftop standoff: B.C. watchdog

Police watchdog finds officers actions reasonable when man injured in 2018 incident

Most Read