Alibaba’s stock tumbled 8% Tuesday on draft of power-limiting regulations, but that didn’t impact its sales on Singles’ Day, China’s annual shopping festival.
This year, Alibaba Group (NYSE: BABA; HKEX: 09988) and other marketplace platforms launched their sales early to adjust to the logistics setbacks and give more marketing time for merchants. And already, ahead of the main Nov. 11 date, some impressive results have been released.
A year ago, Alibaba and rivals JD.com (HKEX: 09618; Nasdaq: JD) and Pinduoduo (Nasdaq: PDD) all booked record sales, with Alibaba leading the way with $38 billion in gross merchandise volume (GMV). And China’s main shopping event of 2020 seems to be no different in record-breaking despite the Covid-19 setbacks.
Alibaba’s official news site reports that purchases on Alibaba’s marketplaces have already exceeded 372 billion yuan, about $56 billion. The sales took place from Nov. 1, when early sales began, until midnight on Nov. 11, according to Alizila.com.
“Also,” Alizila wrote, “the number of orders created at peak was 583,000 orders per second.”
Among highlights of the 11.11 Gala show, held at Shanghai’s Mercedes-Benz Arena, Katy Perry performed virtually.
"Those that win digital commerce in China, win commerce," Jason Goldberg, chief commerce strategist at Publicis Communications and host of e-commerce podcast the Jason & Scot Show, told CapitalWatch in late October.
Alibaba and big Chinese digital retailers like JD and Pinduoduo are positioned to directly benefit from the current and growing digital trends, according to Goldberg.
Goldberg also told CapitalWatch that he expects not only more sales this year for the Chinese e-commerce giants, possibly exceeding $80 billion overall, but a continuing trend even after coronavirus fears completely subside.