Skip to main content

News | Business | Tech Companies: Alibaba, JD set new records to rack up record $115 billion of sales on Singles Day as regulations loom

 

Arjun Kharpal


Alibaba said its total gross merchandise value (GMV) over the Singles Day event, which spanned 11-days, totalled 498.2 billion yuan or $74.1 billion. That beat last year’s 268.4 billion yuan figure.

Alibaba

But it was also overshadowed by huge stock price falls for both Alibaba and JD.com which came after Chinese regulators released draft rules that, for the first time, defines what constitutes anti-competitive behavior. Investors fear that China’s technology giants could get caught up in a tough regulations which could damage their business.

Alibaba’s Hong Kong-listed stock was around 3% higher on Thursday while JD.com’s Hong Kong-listed shares were up over 7%, showing signs of a rebound.

Foreign brands, lower tier cities

For both Alibaba and JD.com, foreign brands were a big focus. Chinese shoppers who would usually be going abroad to buy foreign products, were expected to purchase them in China, due to travel restrictions, Alvin Liu, the president of Alibaba’s Tmall import and export business, told CNBC in an interview last week.

Alibaba said 250,000 brands participated in the Singles Day event this year of which 31,000 were from overseas. The United States was the top country selling to China by GMV, Alibaba said.

Michael Evans, president of Alibaba, said over $5 billion of Alibaba’s total $74.1 billion GMV, came from U.S. brands.

“A China strategy and a digital strategy is going to be critical in the post-pandemic world,” Evans told CNBC.

Singles Day is not just about driving sales, however. Both Alibaba and JD.com see it as a way to acquire new customers and the companies have been focusing on so-called lower tier Chinese cities which usually have more price-sensitive consumers. The e-commerce giants see this as a critical part to their growth strategy.

“Many brands have come to realize the huge size of the Chinese market, so they customize products for lower-tier cities by leveraging JD’s data and our supply chain capabilities,” Xu Lei, CEO of JD Retail, told CNBC in an interview that aired Thursday.

Comments

Popular posts from this blog

Analysis | The Cybersecurity 202: How the shutdown could make it harder for the government to retain cybersecurity talent

By Joseph Marks 13-17 minutes THE KEY President Trump delivers an address about border security amid a partial government shutdown on Jan. 8. (Carolyn Kaster/AP) The partial government shutdown that's now in its 18th day is putting key cyber policy priorities on hold and leaving vital operations to a bare bones staff. But the far greater long-term danger may be the blow to government cyber defenders' morale, former officials warn. With the prospect of better pay and greater job security in the private sector, more government cyber operators are likely to decamp to industry, those former officials tell me, and the smartest cybersecurity graduates will look to industry rather than government to hone their skills. That’s especially dangerous, they say, considering the government’s struggle to recruit and retain skilled workers amid a nationwide shortage of cybersecurity talent. About 20 percent of staffers are furloughed at the De

Democrats call for investigation into Trump’s iPhone use after a report that China is listening:Analysis | The Daily 202 I The Washington Post.

washingtonpost.com By James Hohmann _________________________________________________________________________________ President Trump and Chinese President Xi Jinping visit the Great Hall of the People in Beijing last November. (Andrew Harnik/AP) With Breanne Deppisch and Joanie Greve THE BIG IDEA: If Democrats win the House in two weeks, it’s a safe bet that one of the oversight hearings they schedule for early next year would focus on President Trump’s use of unsecured cellphones. The matter would not likely be pursued with anywhere near the gusto that congressional Republicans investigated Hillary Clinton’s use of a private email server during her time as secretary of state. Leaders of the minority party have higher priorities . But Democratic lawmakers made clear Thursday morning that they will not ignore a New York Times report that Trump has refused to stop using iPhones in the White House, despite repeated warnings from U.S. intelligence offici

RTTNews: Morning Market Briefing.-Weekly Jobless Claims Edge Down To 444,000. May 13th 2010

Morning Market Briefing Thu May 13 09:01 2010   Commentary May 13, 2010 Stocks Poised For Lackluster Open Amid Mixed Market Sentiment - U.S. Commentary Stocks are on pace for a mixed start to Thursday's session, as a mostly upbeat jobs report continued to relieve the markets while some consternation regarding the European debt crisis remained on traders' minds. The major index futures are little changed, with the Dow futures down by 4 points. Full Article Economic News May 13, 2010 Weekly Jobless Claims Edge Down To 444,000 First-time claims for unemployment benefits showed another modest decrease in the week ended May 8th, according to a report released by the Labor Department on Thursday, although the number of claims exceeded estimates due to an upward revision to the previous week's data. Full Article May 13, 2010 Malaysia's Decade High Growth Triggers Policy Tightening Malaysia's economy grew at the fastest pace in a decade in