This impressive result is achieved in the context of the Chinese economy recovering rapidly from the slump caused by the Covid-19 pandemic, and at a time when Alibaba and other major tech companies of the country are being affected by the authorities. control tightening function.
According to Bloomberg, revenue on Alibaba’s e-commerce platforms during this shopping festival reached 498.2 billion yuan, or $ 75 billion, nearly double the $ 38 billion in the same period in 2019. However, the difference this year is that the shopping festival has been on track for days before November 11 and a series of new services have been added.
Alibaba’s annual Singles Day revenue is always seen as a measure of Chinese consumers’ spending power, as well as a “barometer” of the health of the world’s second-largest economy. This year, these shopping festival figures are overshadowed by concerns that Beijing is taking strong measures to curb the growing influence of Alibaba and other major Chinese tech firms.
In the trading session on 11/11, the share price of Alibaba – China’s largest Internet company – fell 9.8% in Hong Kong. This week, Alibaba’s capitalization fell 115% after Beijing announced a series of draft antitrust regulations in the Internet sector.
As an initiative of billionaire Jack Ma, the founder of Alibaba, 11/11 shopping festival was born in 2009. After more than a decade of development, this festival has become a huge hunt for discounts. on Alibaba online sales platforms such as Tmall and Taobao. This year, Chinese people shop even more aggressively on Singles Day, because from the beginning of the year until now, they have to limit travel activities, eating and drinking, tourism … due to epidemics.
Foreign brands have long relied on Alibaba to reach the Chinese middle class. This is especially true this year, when most of the world’s major economies are falling because of the disease.
In the first 111 minutes of discounts on November 1, Nike and Apple were among the 100 brands that generated 100 million yuan ($ 15 million) in revenue on Alibaba platforms. Estee Lauder cosmetics store on Tmall is the first store to reach 1 billion yuan in sales in this shopping festival. International hotel chains such as Marriott and Accor also generated 1 billion yuan in revenue.
Retail sales in China rose 3.3% year-on-year in September and are forecast to increase 5% in October. However, in the first 9 months of the year, retail sales in the country decreased by 7%. over the same period in 2019.
Consumption contributed less than 0.5 percentage points to the 4.9% growth that the Chinese economy achieved in the third quarter, according to estimates of ANZ economist Xing Zhaopeng. Chinese consumer confidence may not be fully restored until 2021.