Alibaba, the world’s foremost e-commerce company, recorded a record $30.7 billion orders on Sunday during its annual “Singles Day” shopping frenzy.
The feat came even as the Chinese company’s growth slowed from previous years. For instance, Alibaba’s share price, which doubled in 2017, is down 16 percent this year.
Online reports indicated that the world’s biggest 24-hour shopping company as part of activities to celebrate its10th year in online trading, flagged off early Sunday and within hours shattered its own sales mark as Chinese online buyers seized on promotions to snap up everything from electronics to clothing and house wares.
According to reports, sales increased by 27 percent, compared with 39 percent last year. This is coming despite the fact that retail sales in China have been steady.
Analysts see the outlook as uncertain as the economy slows and concerns rise over the impact of the trade war with the United States.
Singles Day was originally set aside as an unofficial day for China’s unmarried, but Alibaba explored on to it a decade ago as a shopping promotion similar to the late-November US “Black Friday” retail crush.
Capitalising on the growing addiction to one-click smartphone payments in China, the Singles Day has proven a huge success.
Meanwhile, the company had earlier this month reduced slightly its full-year revenue forecast, citing consumer uncertainty over the economic outlook. However, its officials remained positive about the future as Alibaba continues to adopt new initiatives.
For instance, in addition to 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.
A grocery store, Hema, 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.
Commenting at the Singles Day gala, the company’s Executive Vice Chairman, Joe Tsai said: “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.
“That trend is not going to stop, trade war or no trade war”, Tsai forecasts.
