SHANGHAI, Nov 12, 2018 (AFP) – Chinese e-commerce giant Alibaba filled a
record $30.7 billion in orders on Sunday during its annual “Singles Day”
shopping frenzy, but growth slowed from previous years.
The world’s biggest 24-hour shopping event, celebrating its tenth year,
kicked off early Sunday and once again shattered its own sales mark as
Chinese online buyers seized on promotions to snap up everything from
electronics to clothing and housewares.
Sales rose 27 percent, compared with 39 percent last year.
Although retail sales in China have been steady, the outlook is uncertain
as the economy slows and concerns rise over the impact of the trade war with
the United States.
Alibaba’s share price, which doubled in 2017, is down 16 percent this
year.
Singles Day was originally set aside as an unofficial day for China’s
unmarried, but Alibaba latched on to it a decade ago as a shopping promotion
akin to the late-November US “Black Friday” retail crush.
Capitalising on the growing addiction to one-click smartphone payments in
China, it has proven a huge success.
But Alibaba earlier this month lowered slightly its full-year revenue
forecast, citing consumer uncertainty over the economic outlook.
Company officials remained bullish on the future, however, as Alibaba
pushes new initiatives.
Besides expanding overseas, the e-commerce giant continues to invest in
China in what it calls “new retail”, which optimises in-store sales and
service using data culled online.
Hema, a grocery store launched by Alibaba in 2015 and one of the “new
retail” flagships, allows customers to shop and dine in-store as well as
order groceries online.
“I think you have to understand Alibaba and what Alibaba is doing in the
context of the long-term secular trend that’s developing in China, which is
the rise of the Chinese middle class,” Alibaba Executive Vice Chairman Joe
Tsai said at a Singles Day gala.
“That trend is not going to stop, trade war or no trade war.”