Breaking News
Investing Pro 0
Free Webinar - Crude Oil Trading 2023 | Thursday, February 9, 2023 | 01:00PM PST Enroll Now

Alibaba Singles’ Day Posts Record Sales

Stock Markets Nov 11, 2021 02:09PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Alibaba Singles’ Day Posts Record Sales
 
JD
-3.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BABA
-0.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PDD
-2.14%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Bloomberg) -- Alibaba (NYSE:BABA) Group Holding Ltd.’s Singles’ Day shopping festival posted record sales of 540.3 billion yuan ($84.5 billion), offering China’s largest e-commerce firm a much-needed boost following a year of heightened regulatory scrutiny.    

Sales at the end of Nov. 11 surpassed the 498.2 billion yuan official tally for 2020. The strong performance could ease concerns among investors grappling with a 30% slump in Alibaba’s shares this year, which has seen the company hit with a record $2.8 billion antitrust fine and report its first revenue miss in two years.  Alibaba’s U.S.-traded shares rose 3.3%.

Read more on how the crackdown has changed Singles’ Day

Since its debut in 2009, Singles’ Day has come to dwarf the U.S. Black Friday and Cyber Monday sales in both intensity and size. Alibaba has turned the event into one part showcase of commercialism and one part publicity blitz, featuring enormous discounts to encourage consumption as well as headline-grabbing appearances by celebrities such as Taylor Swift in previous years. 

The 2020 edition roughly doubled sales from the prior year, as Alibaba added several days and additional services to the count. But the festivities this time around have been more low key, with Alibaba seeking to turn the focus from sales growth to its efforts in sustainability and philanthropy -- key pillars of President Xi Jinping’s drive to achieve “common prosperity.” 

Beijing has over the past 12 months introduced new regulations to rein in the country’s largest private corporations in areas from e-commerce to fintech, data security and online content. In the run up to Singles’ Day this year, authorities called on domestic e-commerce platforms to curb marketing spam via text messages and refrain from unfair pricing. 

While its gala this year featured appearances by Sherlock actor Benedict Cumberbatch and Chinese popstar Jackson Yi, Alibaba broke with past years by not releasing gross merchandise value figures for the pre-sales period or the first minutes of Nov. 11 itself before the end of the event. Instead, Chief Marketing Officer Chris Tung told reporters the company is shifting its focus from pure GMV growth to “sustainable growth.”

“I believe the value that 11.11 offers is more than just the GMV figures,” Tung said at a press conference last month. 

Alibaba has pledged to donate 1 yuan each time Singles’ Day shoppers buy certain items and post their purchases on social media. In a nod to another of Xi’s signature goals -- to slash China’s carbon emissions  -- Alibaba’s platforms are also showcasing energy-efficient products during the shopping festival and its logistics network will help to recycle packaging. 

Analysts have long relied on the sales figure to gauge the health of China’s economy as well as the country’s No. 1 e-commerce platform operator. In recent years, Alibaba has confronted fierce competition from rivals such as JD (NASDAQ:JD).com Inc. and Pinduoduo (NASDAQ:PDD) Inc. as well as live-streaming platforms run by the likes of ByteDance Ltd. after they also rolled out Singles’ Day promotions. China is also grappling with a new coronavirus outbreak that’s the broadest since the deadly pathogen first emerged in 2019, with government officials enacting increasingly aggressive measures that could derail economic activity.   

Alibaba’s revenue lagged consensus expectations during the June quarter, its first miss since 2019. The company will release its September quarter results on Nov. 18, with analysts on average forecasting a 33% increase in sales. 

(Updates with shares in second paragraph.)

©2021 Bloomberg L.P.

Alibaba Singles’ Day Posts Record Sales
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email