Chinese spend billions on Singles’ Day

Alibaba said on Friday 84 per cent of sales in the first two hours were via mobile devices, up from past year. Sports stars David Beckham and Kobe Bryant attended the countdown, though headline act Katy Perry pulled out last minute citing a “family” issue.

Sales are expected to exceed $20bn (£16bn), up from $14bn (£11bn) in 2015. Last year, Black Friday and Cyber Monday accounted for $3 billion in sales volume. Sales on mobile hit the $1 billion mark at 5 minutes and 31 seconds into the 24 hour sales event.

Singles’ Day isn’t just limited to Alibaba-other Chinese online retailers, like JD.com, also participate.

“This year I also see the organisers have used more TV commercials to boost their branding for the Single’s Day events”.

The best-selling goods so far this year include Apple iPhones, Nike and Adidas apparel and Haier appliances, according to Alibaba.

“We are bringing [the platform] to consumers in Hong Kong and Taiwan for the first time this year, and next it will be Southeast Asia and the rest of the world”, Alibaba Chief Executive Daniel Zhang told Reuters last month. Alibaba’s first Singles’ Day promotion, created to drum up sales for the company’s upstart Tmall service (Amazon with Chinese characteristics), scored $7.7 million in revenue. We’re not sure if money can indeed buy happiness, but if anyone’s laughing to the bank, it’s Alibaba and other savvy retailers who have jumped on the Singles’ Day bandwagon.

Investors are keeping a close eye on the annual November 11 spending blitz that dwarfs Black Friday and Cyber Monday in the US, to see if Alibaba can reprise the 60 percent leap in transactions to 91.2 billion yuan it managed a year ago.

China’s online spending on the FMCG – the category spanning infant formula, to soft drinks, and beauty products – shot up to US$25.3 billion from US$1.4 billion in 2010, according to Euromonitor International.

E-commerce has risen from 3 percent of Chinese consumer spending in 2010 to 15 percent a year ago, according to Boston Consulting Group.

The day’s turnover was only “a very small fraction of its total annual sales”, independent e-commerce analyst Li Chengdong said, but was “a confidence index for the firm”.

Singles Day is held every year on 11 November.

E-commerce has become a game changer in China’s retail industry and it has reshaped how people shop in China.

Joe Tsai, Vice-Chairman, Alibaba Group said, “Shopping is entertainment in China”.

This has followed continued investment by the Alibaba network (taobao, alipay, Tmall) in their e-commerce platforms to encourage domestic and global retailers to participate.