Wednesday , June 16 2021

3 Takeaways Beyond The Big Number




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Chinese e-commerce giant Alibaba said Singles' Day sales hit another record high. (Photo Credit: STR / AFP / Getty Images)Getty

2018 iteration of Singles Day, shopping and entertainment extravaganza from Chinese e-commerce giant

Alibaba
, has ended, & nbsp; with & nbsp; The company notching another record sales day. But with this & nbsp;Singles & # 39; Day-10 years after & nbsp;Alibaba First, 11/11 made a shopping event to celebrate those who are still alone-there is much more to analyze than & nbsp; the.

With & nbsp; Alibaba has expanded the scope of Singles & # 39; Day activities and involved more mortar and food and hotel services closed gross value or GMV over their platforms the day 27% higher, & nbsp; for a record $ 30.8 billion (RMB 213.5 billion). & Nbsp; Company Singles & # 39; Day Volume Reapplied & nbsp; US online sales on Black Friday and Cyber ​​Monday combined and topped the Amazon's Prime Day shopping bonanza, which probably would not be a surprise given that Alibaba's number of mobile monthly active users is 666 million, double the entire US population.

The day has arisen as a barometer for Chinese consumer spending, especially in view of a slower China economy and a trade war between the US and China.

"This trend (of a rising Chinese middle class) will not end, trade war or no trade war," said Alibaba vice president Joe Tsai & nbsp; in a company blogs Sunday.

While the latest Chinese government data showed "weakness" in large ticket items, including household appliances and cars, and the proposed Chinese consumers see "uncertainty in the future and lowering lasting purchases," Alibaba's Chinese retail markets, including Tmall and Taobao, have continued to see "robust growth" in consumer staples, cosmetics and clothing, Tsai said earlier this month when Alibaba reported its latest quarterly results.

China's "middle class consumers have had significant real wage developments over the past decade, and they are looking for high quality products to satisfy their discretionary spending and an increasingly sophisticated lifestyle", & nbsp;Tsai said at the time. In view of an OECD forecast, Tsai said that China's middle class would almost triple & nbsp; from 2030 to 850 million, from 300 million.

Here are other takeaways & nbsp; from this year's Singles Day:

International brands want their share of the Chinese middle class wallet

When Alibaba first started earning money on Singles & # 39; Day 2009, 27 brands were included

Adidas
, signed to participate. The total number of local and foreign brands this year: 180,000.

Over 40% of & nbsp;Alibaba Singles Day Shoppers bought from international brands and almost 240 brands, including Apple, Dyson, Kindle, Est & eacute; e Lauder, L & # 39; Or & eacute; Al, Nestle, Gap, Nike and Adidas, each toppled 100 million RMB a day GMV, said Alibaba.

Despite the trade gap between the United States and China, Chinese consumer love for American products showed no signs of decline: the United States dragged only Japan & nbsp; to sell to China, in the case of GMV.

For example,

Starbucks
and

Nike
, both of which have traced the importance of the China market for its growth, designed the Singles & # 39; Day Exclusive beverages,& nbsp; sneakers and other goods. Nike, in prepping For what is described as a "colossal" single day, it said that it would even use drones for fast delivery to rural customers.

Alibaba faces the growing Singles' Day competition

Just & nbsp; as Amazon's Prime Day has & nbsp; Received American Dealers & nbsp; including & nbsp;

Walmart
& Nbsp; and & nbsp;

Goal
run their own campaigns, & nbsp; convert & nbsp; a summer cradle & nbsp; to a big shopping meeting in the detailed calendar, Alibaba's rivals – including its top contender, & nbsp;

JD.com
-Have been aggressively upping their Singles' Day game. For example, JD.com – whose impressive list & nbsp; of investors and partners include & nbsp; Walmart, Google and Tencent, parent of China's mobile mobile messaging app, WeChat, said the volume of transaction for Singles Day amounted to RMB 160 billion or $ 23 billion.

Many brands are not blind to the importance of other platforms either. For example, Nike said that its one-off Singles Day offers would be available on all of its Nike Direct platforms, including Nike.com, SNKRS App, and Nike.com at Alibaba's Tmall, as well as the Nike WeChat Mini- Program on the Tencent platform. & nbsp; For good reason: WeChat's number of global monthly active users this year has peaked & nbsp; a & nbsp; billion.

According to research company Analysys International, Alibaba had a 58% share of China's e-commerce market share from GMV from the second quarter, followed by JD.com at 26%.

En & nbsp; recording day, & nbsp; yes, but & nbsp; Is it sustainable and at what cost? & Nbsp;

Alibaba Singles Day, even though it reached another record, actually saw its growth rate slowly from about 40% last year, just like Amazon's record, Prime Day sales this year failed to report it slows quarterly online sales growth.

Alibaba, like its global rivals, is aggressively monitored abroad growth. For example, its acquisition Lazada, & nbsp; an e-commerce market in Southeast Asia, held its own Singles & # 39; Day shopping event for the first time this year.

Still, even with & nbsp; all & nbsp; try to win market share, it is & nbsp; unclear if the actual day was actually profitable for Alibaba and its rivals. Alibaba and its major competitors have doubled down on technology and logistics costs that could make it easier for China's mobile phone consumers to trade shopping on their smartphones and in the store, but these investments have come at a cost.

One matter: Although higher revenue was reported over its central e-commerce, cloud computing and other segments, & nbsp;Alibaba & # 39;s revenue from operations actually fell 19% in the last quarter, injured & nbsp; partly by spending & nbsp; on what Alibaba has called "New Retail" initiative to integrate online and physical retail trade.

Related to Forbes: Walmart can come to Amazon on price, but still have a way to go

Related to Forbes: Amazon, which faces increased competition, offers free shipping on all orders for the first time

Related to Forbes: Customs should speed up the clothing production's move from China, studying considerations

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Chinese e-commerce giant Alibaba said Singles' Day sales hit another record high. (Photo Credit: STR / AFP / Getty Images)Getty

2018 iteration of Singles Day, shopping and entertainment extravaganza from Chinese e-commerce giant
Alibaba
, has ended, with the company entering another record sales day. But with this Singles & # 39; Day-10 years after Alibaba First, 11/11 made a shop arrangement to celebrate those who are still alone – there is much more to analyze than that.

With Alibaba, which has expanded the scope of Singles Day activities and involved more mortar and food and hotel services, gross value or GMV closed their day 27% higher, for record $ 30.8 billion (RMB 213.5 billion). The company's Singles Day volume immediately rebuked US online sales on Black Friday and Cyber ​​Monday combined and topped the Amazon's Prime Day shopping bonanza, which probably would not be a surprise given that Alibaba's number of mobile monthly active users is 666 million, double the entire US population.

The day has arisen as a barometer for Chinese consumer spending, especially in view of a slower China economy and a trade war between the US and China.

"This trend (of a rising Chinese middle class) will not end, trade war or any trade war," said Alibaba, Vice President Joe Tsai, in a corporate blog post Sunday.

While the latest Chinese government data showed "weakness" in large ticket items, including household appliances and cars, and the proposed Chinese consumers see "uncertainty in the future and lowering lasting purchases," Alibaba's Chinese retail markets, including Tmall and Taobao, have continued to see "robust growth" in consumer staples, cosmetics and clothing, said Tsai earlier this month when Alibaba reported its last quarterly earnings.

China's "middle-class consumers have had a significant real wage trend over the last decade, and they are looking for high quality products to satisfy their discretionary spending and an increasingly sophisticated lifestyle" Tsai said at the time. In view of an OECD forecast, Tsai said that China's middle class almost tripled 2030 to 850 million from 300 million.

Here are other takeaways from this year's Singles Day:

International brands want their share of the Chinese middle class wallet

When Alibaba first started earning money on Singles & # 39; Day 2009, 27 brands were included
Adidas
, signed to participate. The total number of local and foreign brands this year: 180,000.

Over 40% of Alibaba Singles Day Shoppers bought from international brands, and nearly 240 brands – including Apple, Dyson, Kindle, Estée Lauder, Oréal, Nestle, Gap, Nike and Adidas – each peaked RMB 100 million ($ 14.4 million) in one day GMV, Sade Alibaba.

Despite the trade gap between the US and China, Chinese consumer love for American products showed no signs of decline. The United States just dropped Japan to sell to China, as regards GMV.

For example,
Starbucks
and
Nike
, both of which have traced the importance of the China market for its growth, designed Singles & # 39; Day-exclusive drinks, sneakers and other goods. Nike, in prepping for what it is described as a "colossal" Singles Day, said it would even use drones for fast delivery to rural customers.

Alibaba faces the growing Singles' Day competition

Just like Amazon's Prime Day, American dealers include
Walmart
and
Goal
run their own campaigns, turn one summer into a big shopping opportunity on the retail calendar, Alibaba's rivals – including top contestants,
JD.com
-Have been aggressively upping their Singles' Day game. For example, JD.com's impressive list of investors and partners includes Walmart, Google and Tencent, the parent company of China's mobile mobile app, WeChat, said the transaction volume amounted to RMB 160 billion, or $ 23 billion.

Many brands are not blind to the importance of other platforms either. For example, Nike said that its one-off Singles Day offers would be available on all of its Nike Direct platforms, including Nike.com, SNKRS App, and Nike.com at Alibaba's Tmall, as well as the Nike WeChat Mini- Program on the Tencent platform. For good reason: WeChat's number of global monthly active users has reached a million this year.

According to analyst Analysys International, Alibaba had a 58% share of China's e-commerce market share from GMV from the second quarter, followed by JD.com at 26%.

A record sales day, yes, but is it sustainable and at what cost?

Alibaba Singles Day, despite the fact that it reached another record, actually saw its growth rate slowly from about 40% last year, just as Amazon's record Prime Day sales this year failed to report quarterly slowdown of sales for e -trade.

Alibaba, like its global rivals, is aggressively monitored abroad growth. For example, its acquisition Lazada, an e-commerce market in Southeast Asia, held its own Singles Day shopping event for the first time this year.

Nevertheless, it is unclear whether the actual day was actually profitable for Alibaba and its rivals, even with every effort to gain market share. Alibaba and its major competitors have doubled technology and logistics costs that could make it easier for China's mobile phone consumers to switch seamlessly between shopping on their smartphones and in the store, but these investments have come at a cost.

One more matter: Despite reporting higher revenues in its core e-commerce, cloud computing and other segments, Alibaba & # 39;s revenue from operations fell 19% in the last quarter, which was partially damaged by spending what Alibaba has called "New Retail" initiative to integrate online and physical store sales.

Related to Forbes: Walmart can come to Amazon on price, but still have a way to go

Related to Forbes: Amazon, facing increased competition, offers free shipping on all orders for the first time

Related to Forbes: Tariffs should speed up the clothes manufacturing move from China, studying the findings


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