Sunday , January 24 2021

3 Takeaways Beyond the great number




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The Chinese electronic commerce giant Alibaba said single singles sales reached another record. (Photo credit: STR / AFP / Getty Images)Getty

The 2018 Day iteration of the singles, the extravagance of purchases and entertainment of the Chinese electronic commerce giant

Alibaba
, finished, & nbsp; with & nbsp; the company recording another day of record sales. But with this & nbsp;Day of the bachelors10 years later & nbsp;Alibaba first made a purchasing event on 11/11 to celebrate those still on their own – there is much more to analyze than & nbsp; that

With Alibaba expanding the scale of Daytime activities and involving more grocery stores and services and brick and mortar hotels, the gross value of merchandise, or GMV, through its platforms closed a day 27% higher, because a record $ 30,800 million (RMB 213,500 million). & Nbsp; The company's Singles & # 39; volume returned to exceed & nbsp; US online sales on Black Friday and Cyber ​​Monday combined and headed Amazon Prime Day's purchasing bonus, which surely should not be surprising since the number of active mobile monthly users of Alibaba is 666 million, double the entire population of the US. UU.

The day arose as a barometer of Chinese consumer spending, especially in the context of a slow China economy and a trade war between the United States and China.

"That tendency (of a rising Chinese middle class) will not stop, trade with war or no commercial war," said executive vice president of Alibaba, Joe Tsai, in a company blog post Sunday

While recent Chinese government data showed "weakness" on big ticket items, including home appliances and cars, and suggested that Chinese consumers "see uncertainty in the future and are cutting back on purchases of durable goods," China's retail markets Alibaba, including Tmall and Taobao, continued to see "robust growth" on staples to the consumer, cosmetics and clothing, Tsai said at the beginning of the month when Alibaba informed his Last quarterly earnings.

China's "middle class consumers" have experienced significant real wage growth over the past decade, and are looking for high-quality products to meet their discretionary expense and increasingly sophisticated lifestyle, "& nbsp;Tsai he said at the time. Citing an OECD forecast, Tsai said the middle class of China & nbsp; almost triple it & nbsp; by 2030, up to 850 million, of 300 million.

Here are other dishes & nbsp; of this year's Simpatic Day:

International brands want their share of the Chinese middle class portfolio

When Alibaba began monetizing Singles Day in 2009, 27 brands, including

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

More than 40% of & nbsp;Alibaba Buyers of Day of Singles have bought international brands and almost 240 brands – including Apple, Dyson, Kindle, Est & eacute; and Lauder, The- Nestlé, Gap, Nike and Adidas- have surpassed 100 million RMB (14.4 million dollars) in GMV one day said Alibaba.

In spite of the commercial seed of the United States and China, the love of the Chinese consumers to the American products did not show signs of diminution: the United States only stopped selling to China in terms of GMV.

For example,

Starbucks
e

Nike
, the two who have promoted the importance of China's market for growth, have designed the exclusive Singles Day drinks,& nbsp; sneakers and other merchandise. Nike, in preparation For what he described as a "colossal" Day of the singles, he said he would even use drones for fast delivery to rural clients.

Alibaba faces the growing competition of the Simpsons Day

Only & nbsp; like Amazon Prime Day & nbsp; have retailers in the United States & nbsp; including & nbsp;

Walmart
& nbsp; and & nbsp;

Goal
Boosting its own promotions, and turning a summer passion into a great opportunity to buy in the retail calendar, rivals Alibaba, including its main competitor, & nbsp;

JD.com
– They aggressively attacked their game of singles. For example, JD.com, whose impressive list of investments and partners includes Walmart, Google and Tencent, the father of the most important mobile messaging application in China, WeChat, said that the volume of Single Day transactions amounted to 160 million RMB or 23,000 million dollars.

Many brands are not yet blinded to the importance of other platforms. Nike, for example, said that their One-time Singles Day offers would be available on all Nike Direct platforms, including Nike.com, SNKRS and Nike.com on Alibaba Tmall, as well as the Nike WeChat Mini-Programs. on the Tencent platform. & nbsp; For a good reason: WeChat's global active users number this year has exceeded & nbsp; a & nbsp; millions

According to the research firm Analysys International, Alibaba he had a percentage of 58% of the market share of electronic commerce in China by GMV from the second quarter, followed by JD.com by 26%.

A & nbsp; record day of sales, & nbsp; yes, but & nbsp; Is it sustainable and at what cost? & Nbsp;

Alibaba's unmarried day, despite reaching another record, actually saw its slow growth rate from about 40% last year, as Amazon Prime Day's sales recorded this year failed to prevent the report decreasing quarterly growth of electronic commerce sales.

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

Even so, even with & nbsp; effort to gain market share, & nbsp; It is not clear whether the day itself was really profitable for Alibaba and its rivals. Alibaba and its main competitors have been doubling the technology and logistics costs that could make China's mobile phone consumers easier to switch between purchases on their smart phones and the store, but these investments have come at a cost.

A case in point: despite reporting higher incomes in its entire e-commerce core, cloud computing and other segments, & nbsp;Alibaba & # 39;Income from operations fell 19% in the most recent quarter, lost & nbsp; partly spending & nbsp; in which Alibaba called "New retailers" initiatives to integrate sales in physical stores and online.

Related to Forbes: Walmart may be rising to Amazon by price, but still has a way to go

Related to Forbes: Amazon, in face of growing competition, offers free shipping on all orders for the first time

Related to Forbes: Tariffs should accelerate the movement of clothing manufacturing outside of China, the study approaches

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The Chinese electronic commerce giant Alibaba said single singles sales reached another record. (Photo credit: STR / AFP / Getty Images)Getty

The 2018 Day iteration of the singles, the extravagance of purchases and entertainment of the Chinese electronic commerce giant
Alibaba
, ended, with the company recording another day of record sales. But with that Day of the bachelors10 years later Alibaba First 11/11 was a purchase event to celebrate those still on their own – there is much more to analyze than that.

With Alibaba expanding the scale of the activities of the Day of the single women and involved more stores and services of food and hotels of brick and mortar, the gross value of merchandise, or GMV, through its platforms closed the day 27% higher, with record of $ 30,800 million (RMB 213.5 million). The company's Singles & Day volume has once again surpassed US online sales on Black Friday and Cyber ​​Monday combined and exceeded the Amazon Prime Day purchasing bonus, which surely should not be surprising given that the number of active monthly users of Alibaba is 666 million, double the entire population of the United States.

The day arose as a barometer of Chinese consumer spending, especially in the context of a slowdown in the Chinese economy and a trade war between the United States and China.

"That trend (of a rising Chinese middle class) will not stop, trade war or no commercial war," Alibaba executive vice president Joe Tsai said in a company blog post.

While recent Chinese government data showed "weakness" on big ticket items, including home appliances and cars, and suggested that Chinese consumers "see uncertainty in the future and are cutting back on purchases of durable goods," China's retail markets Alibaba, including Tmall and Taobao, continued to see "robust growth" on staples to the consumer, cosmetics and clothing, Tsai said earlier this month when Alibaba reported its latest quarterly earnings.

China's "middle class consumers" have experienced significant real wage growth over the past decade and are looking for high quality products to meet their discretionary expense and increasingly sophisticated lifestyle. " Tsai he said at the time. Citing an OECD forecast, Tsai said that the Chinese middle class will almost triple by 2030, up to 850 million, from 300 million.

Here are other dishes on the Day of the Friends of this year:

International brands want their share of the Chinese middle class portfolio

When Alibaba began monetizing Singles Day in 2009, 27 brands, including
Adidas
, signed to participate. The total number of local and foreign brands in this year: 180,000.

More than 40% of Alibaba Day Singles buyers bought international brands and almost 240 brands-including Apple, Dyson, Kindle, Estee Lauder, Lone, Nestlé, Gap, Nike and Adidas-have surpassed 100 million RMB ($ 14.4 million ) on a GMV day, Said Alibaba.

Despite the commercial seed of the United States and China, the love of Chinese consumers to US products showed no signs of decline: the United States left only the sale of Japanese in China, in terms of GMV.

For example,
Starbucks
e
Nike
, which promoted the importance of the Chinese market for its growth, designed the exclusive drinks of Singles Day, sneakers and other merchandise. Nike, in preparing what he described as a "colossal" Day of the singles, said he would even use drones for a fast delivery to rural clients.

Alibaba faces the growing competition of the Simpsons Day

Just as Amazon Prime Day has US distributors, including
Walmart
e
Goal
Boosting its own promotions, turning a summer break into a great occasion for purchases in the retail calendar, rivals Alibaba, including its maximum competitor,
JD.com
– They aggressively attacked their game of singles. For example, JD.com, whose impressive list of investors and partners includes Walmart, Google and Tencent, the father of the most important mobile messaging application in China, WeChat, said that the volume of Single Day transactions amounted to 160 million RMB or 23,000 million dollars.

Many brands are not yet blinded to the importance of other platforms. Nike, for example, said that their One-time Singles Day offers would be available on all Nike Direct platforms, including Nike.com, SNKRS and Nike.com on Alibaba Tmall, as well as the Nike WeChat Mini-Programs. on the Tencent platform. For a good reason: the number of global WeChat active users this year has exceeded one billion.

According to the research firm Analysys International, Alibaba had a 58% stake in the market share of China's electronic commerce by GMV from the second quarter, followed by JD.com by 26%.

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

Alibaba's unmarried day, despite reaching another record, actually saw its slow growth rate from 40% last year, as Prime Day's sales of Amazon recorded this year failed to prevent it from reporting a slowdown of the growth of quarterly e-commerce sales.

Alibaba, like its global rivals, is aggressively looking at growth abroad. For example, its acquisition Lazada, a Southeast Asian e-commerce market, has made its own singles shopping event this year for the first time.

Even so, even with all the effort to win the market share, it is not clear whether the day itself was really profitable for Alibaba and its rivals. Alibaba and its main competitors have been doubling the technological and logistic costs that could be made available to consumers of China's mobile phones to perfectly exchange their purchases on their smartphones and at the store, but the investments came at a cost.

One case in point: despite reporting higher incomes in its entire core of electronic commerce, cloud computing and other segments, Alibaba & # 39;Income from operations fell 19% in the most recently reported quarter, hurt in part by spending what Alibaba called the "New Trade" initiatives to integrate sales in physical stores and online.

Related to Forbes: Walmart may be rising to Amazon by price, but still has a way to go

Related to Forbes: Amazon, in face of increasing competition, offers free shipping on all orders for the first time

Related to Forbes: the rates should accelerate the displacement of clothing manufacturing in China, the study approaches


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