The yearly Singles Day online shopping bonanza of China regularly hauls in tens of billions of dollars for Alibaba, other e-commerce and retail companies. This year, it is becoming a supporting pillar as a showcase for the success of the country in combating the coronavirus pandemic. On Thursday, Alibaba said that the yearly sales frenzy once again broke the previous year’s records, raking in around $75 billion (498.2 billion yuan). The total figure includes an earlier 3-day period that previously added to lift post-pandemic sales.
China’s annual Singles Day online shopping bonanza regularly hauls in tens of billions of dollars for Alibaba and other e-commerce and retail companies in China. https://t.co/MVWH4KdaC2
— CNN Philippines (@cnnphilippines) November 12, 2020
According to Alibaba, this year’s haul signifies an increase of twenty-six percent compared to the same time-frame last year. The analyst with market research firm Forrester said that the economy of China showcases a strong recovery, and the purchase behaviors of Chinese consumers already returned to pre-pandemic levels, if not higher. Last month, Chinese officials reported positive economic growth for the 2nd quarter-end to end, highlighting how rapidly the second largest economy of the world recovered from the pandemic.
For retailers and brands struggling to recover from months of closed shops and consumers hunkered down indoors, the profitable shopper of China stands as a much-needed bright spot. According to Wang, several companies are doubling down on their events of Singles Day sales. Market research firm Oliver Wyman found in a survey that eight-six percent of Chinese consumers agreed to spend the same as or over what they did during the previous year’s Singles Day.
Glitzy stars and epic growth
Singles Day regularly racks up blockbuster sales than Cyber Monday and Black Friday combined. The event also termed Double 11 – pledged to the anti-Valentine’s Day holiday that single people celebrate. It celebrated on 11th November, a date that selected because it written as four singles. The first time, Alibaba started offering Singles Day discounts and since changed the event into a bonanza of online shopping.
Other Chinese e-commerce platforms, such as Pinduoduo, JD.com, and Red, besides regular brick-and-mortar stores, also participate in the event. The event of rival JD.com lasts two weeks more than Alibaba’s. On Thursday, JD also made a new sales record of $41 billion (271.5 billion yuan) during the event, growing thirty-three percent compared to the previous year. The event also grew traction outside China: Southeast Asia subsidiary of Alibaba, Lazada offers Double 11 discounts in Malaysia, Singapore, Vietnam, Indonesia, and Thailand.
Alibaba once again held a glitzy live concert in China to count down the hours until the start of the main sales day. Celebrities usually make appearances at the 11.11 Gala, generally to hawk their own products and brands. The headline performer of the last year was singer Taylor Swift. Whereas, this year, Katy Perry appeared as the headline performer.
This time, the company added three extra days of sales – which took place from 1st November to 3rd November – because of the COVID-19 pandemic, according to the managing director at Citigroup Global Markets Asia, Alicia Yap. According to the note of Yap, some days of huge discounts help merchants or brands earn lost sales during the lock-down restrictions and help international brands gain access to the stronger demand from the Chinese consumers.
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