LDN - Business

Chinese e-commerce firms report growth in sales, shoppers for Singles' Day shopping festival

[November 13, 2024] By ZEN SOO

HONG KONG (AP) — China’s e-commerce firms reported an increase in the number of shoppers and a growth in sales for this year’s Singles’ Day shopping festival, although final figures were not publicly revealed.

Alibaba, which operates the Taobao and Tmall e-commerce platforms, said 45 brands – including Apple, Nike, and Chinese appliance brands Haier and Midea – surpassed 1 billion yuan ($138.3 million ) in gross merchandise value, which measures the value of transactions made.

Alibaba said in a news statement Tuesday that Taobao and Tmall saw “robust growth” in gross merchandise volume – a common metric for sales during the festival – and a “record number” of buyers, though it did not provide specifics.

The Hangzhou-based firm also said that the number of 88VIP members – its paid e-commerce membership program – who placed orders during the festival increased by over 50%.

Rival online retailer JD.com said Tuesday the number of shoppers for its Singles’ Day promotion period grew 20% and that it achieved “double-digit growth” in transaction volume and orders.

Though Alibaba and JD.com previously reported the final sales figure for Singles’ Day, both platforms stopped doing so since 2022, though estimates by third-party companies suggest that sales growth have slowed post-COVID 19.

Syntun, a data provider, estimated that last year’s gross merchandising volume sales across major e-commerce platforms grew just 2% to 1.14 trillion yuan ($156.40 billion), a far cry from double-digit growth before COVID-19 amid a lagging domestic economy and weak consumer sentiment.

Alibaba started the now-famous event on Nov. 11, 2009, offering attractive discounts to entice shoppers to spend more. The extravaganza, also known as “Double 11,” has since expanded to other platforms in China — like JD.com and Pinduoduo — and abroad.

The festival has long been regarded as a barometer of consumer sentiment in China.

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A masked woman walks at a fashion boutique displaying posters to promote Singles' Day discounts at a shopping mall in Beijing, Monday, Nov. 11, 2024. (AP Photo/Andy Wong)

Platforms like Alibaba and JD.com have offered billions in subsidies to lower prices of products for consumers as they compete with discount shopping platforms like Shanghai-based Pinduoduo.

Categories like home appliances and furniture performed well this year thanks to platform discounts and government subsidies, Alibaba said.

Other emerging categories include collectible toy brands, as well as sports and outdoor items.

“There’s a clear shift in consumer priorities towards spending on experiences, hobbies, and health,” said Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing + Technologies.

“There’s a notable focus on emotional and social aspects of consumption, with consumers spending more on products that enhance their social lives or emotional well-being,” he said, adding that consumers are shifting away from luxury to premium brands that align with their lifestyles.

A winner of this trend is sportswear brand Lululemon, which hit $1 billion in sales in China for the first time, with the country soon to become its second largest market after the U.S.

JD.com said large-screen televisions were also a popular item, together with other appliances such as robotic vacuum cleaners, air conditioners and dryers. Winter products were also in high demand, JD.com said.

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