China: e-Commerce Boom Highlights Strong Consumption
- November 11 shopping spree is a commercial miracle for the world
The record sales at major Chinese e-Commerce sites Saturday offer an insight into the robust domestic demand in the world’s 2nd-largest economy.
November 11 has become an online shopping spree since Y 2009 when Alibaba’s Tmall made its 1st online sales promotion. Now it is on par with “Black Friday,” when most US retailers online or offline offer promotions.
November 11 is known in China as Singles’ Day because the date, 11-11, resembles four “bare sticks,” a term used in China to refer to single people.
The world’s biggest online shopping spree is a barometer of consumer behavior. It has attracted shoppers from around the world looking for bargains and multinational corporations seeking sales.
Trade at Alibaba (NYSE:BABA), China’s largest e-Commerce platform, reached $25.4-B during Saturday’s shopping promotion.
Alipay, Alibaba’s mobile payment platform, handled 1.48-B payments from around the world, 41% more than last year.
A total of 812-M orders were generated in the 24 hours, + 23% from the same frame last year.
More than 140,000 overseas brands participated, with 206 countries and regions involved in. Customers came from 225 countries.
JD.com, who started promotions at the beginning of this month, reported RMB 127.1-B of orders. Kaola.com posted a 300% annual growth in sales Saturday.
“From 52-M Yuan in Y 2009 to 168.3-B Yuan this year, we have witnessed a rapidly growing domestic demand in the 8 years,” said the CEO of Alibaba.
The shopping spree on 11 11 is just the beginning of the potential of China’s consumption power.
China’s strong domestic demand has brought opportunities for global sellers.
With rising living standards, more Chinese consumers are buying quality non-daily necessities and the consumption habit is also driving the Chinese manufacturers to upgrade their products.
November 11 shopping spree is a commercial miracle for the world
Many e-Commerce sites have used AI and Big Data to predict consumers’ shopping habits, prepare inventories of goods and help cope with the surge in orders. This will help reduce logistics costs and deliver goods to consumers earlier than usual.
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Have a terrific week.