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

Campaign aims to raise $50K for young family of deceased Vancouver Island skydiver

James Smith, 34, died July 5 following incident in Nanoose Bay

Cowichan rallying around family after rare disorder leaves teen partially paralyzed

Sammy Dubois, 14, disgnosed with rare neurological disorder

Missing Port Alberni man found deceased

47-year-old had been missing since late June: RCMP

TV star’s family selling Vancouver Island Beach Resort

You can own Jason Priestley’s Terrace Beach Resort in Ucluelet for less than $5 million

B.C. appeals judge’s decision to leave three clubhouses in Hells Angels hands

The province has filed two notices of appeal related to the B.C. Supreme Court decision

VIDEO: Victoria’s Raging Grannies call for end to public funding of for-profit senior homes

Organizer says COVID-19 has made senior home issues more apparent

Sooke Crisis Centre closes doors

Services previously offered to be dispersed throughout community support groups

Canadian policing organization calls for decriminalization of simple illicit drug possession

Canadian Association of Chiefs of Police want policing focus of opioid crisis to be replaced with a health one

Survey, hotline launched amid probe into racist blood-alcohol guessing game at B.C. hospital

Mary Ellen Turpel-Lafond has been appointed to lead an investigation by Health Minister Adrian Dix

RCMP disarm man experiencing mental health crisis in Campbell River

Man pulled a knife on officers and then held it to his own throat expressing a desire to die

Saanich police identify suspect in Brydon Park assault

No charges sworn, no arrest made as of July 9

Jamie Bacon pleads guilty to charge in Surrey Six case

The plea brings an end to a complex legal case that has spanned more than a decade

17-year-old girl from Nanaimo reported missing

RCMP asking for help finding Trisha Harry

Filing deadline in RCMP sexual-harassment class-action extended due to COVID-19

Plaintiffs now have until January 2021 to submit claims for up to $222,000

Most Read