Slowing online sales growth has prompted Alibaba to expand in less-developed areas outside of China’s massive first- and second-tier cities.
Chinese retailer Alibaba (BABA.N) on Monday said sales for its annual Singles’ Day shopping blitz jumped 25% in the first nine hours to $23 billion, nearly two thirds of U.S. rival Amazon.com Inc’s (AMZN.O) online store sales in the latest quarter.
Sales growth for the full 24-hour event, however, is likely to fall short of the year earlier, analysts said, at a time when China’s economic expansion heads toward a historic low.
The event, a gauge of Chinese consumer sentiment, has also become a shop window this year for Alibaba Group Holding Ltd as the firm plans to sell $15 billion worth of shares in Hong Kong. U.S.-listed Alibaba has spent big to diversify its business yet still earns over fourth-fifths of revenue from e-commerce.
Akin to Black Friday and Cyber Monday in the United States, Singles’ Day has been promoted as a shopping fest by Alibaba Chairman and Chief Executive Daniel Zhang since 2009, and has grown to become the world’s biggest online sales event.
Also known as “Double Eleven”, the festival’s name originates from the calendar date Nov. 11, with the four ones of 11/11 signifying being single.
What started as a marketing gimmick has been replicated by rivals at home and abroad. As well as longtime competitor JD.com Inc (JD.O), Singles’ Day promotions can be found at China’s Pinduoduo Inc (PDD.O) as well as South Korea’s 11thStreet and Singapore’s Qoo10.
Slowing online sales growth has prompted Alibaba to expand in less-developed areas outside of China’s massive first- and second-tier cities.
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