Alibaba may have pioneered the concept of Singles’ Day, the world’s largest shopping day based on sales, but it very much not the only e-commerce giant involved. JD.com, Alibaba’s biggest rival in China, just announced that it sold RMB 159.8 billion ($23 billion) in goods for its Singles’ Day campaign. Unlike Alibaba, which racked up $31 billion […]
Unlike Alibaba, which racked up $31 billion in GMV in the 24-hour sale on November 11, JD’s festival ran for 11 days starting on November 1. That said, a large chunk of Alibaba’s sales are queued up in the days ahead of November 11 as retailers aggressively push deals, but JD is more open about its shopping period beyond the core 24 hours.
The firm’s 2018 numbers are up 26 percent on last year when it recorded 127.1 billion RMB in GMV — then worth around $19.14 billion. That was the first year that JD went public with its 11.11 sales. JD’s annual growth is about on par with Alibaba, which saw its Singles’ Day growth drop to an all-time low of 27 percent this year. That’s perhaps to be expected given the huge amount of GMV already being generated. It is worth noting — however — that JD’s GMV is about the same as its mid-year sale in June, which grossed 159.2 billion.
Alibaba shipped over one billion packages for the first time this year, but JD isn’t saying how many it handled. It did push out 400 million items from its FMCG and food business, and some of the brands it worked with across its business included Apple, Dell, Dyson, L’Oréal, SK-II and Pampers.
“There is a noticeable shift in China toward quality over price, which we see in the growing numbers of consumers who are willing to pay more for branded and imported goods,” JD.com CMO Lei Xu said in a statement.
JD’s approach to 11.11 has parallels with Alibaba but also there are differences. Like its rival, JD has pushed its presence into physical retail with its fresh food supermarket brand 7FRESH, unmanned convenience stores and ‘Retail Experience Shops’ — Alibaba has its Hema markets and InTime mall stores — while it claims that 600,000 stores used its tech and infrastructure to host their own Singles’ Day events.
While Alibaba has grown its business using both its Tmall platform for brands and Taobao marketplace, JD has taken a more managed approach to e-commerce. Most of its efforts are focused on working with brands which is why it claims to have avoided the counterfeit goods issue that has plagued Alibaba, which remains on the U.S. government’s ‘Notorious Markets’ list.
Tencent had an unexpected miss this week, but Chinese rival Alibaba experienced no such issue today as it beat analyst expectation after clocking 61 percent annual revenue growth. The Chinese e-commerce giant reported total sales of 80.92 billion RMB ($12.2 billion) for its Q1 2019, fractionally beating Bloomberg’s estimate of 80.88 billion RMB. The firm record […]
The Chinese e-commerce giant reported total sales of 80.92 billion RMB ($12.2 billion) for its Q1 2019, fractionally beating Bloomberg’s estimate of 80.88 billion RMB. The firm record a net profit of 8.7 billion RMB ($1.3 billion) for the period, down 41 percent.
Diluted earnings per share of 3.30 RMB was down 42 percent annually but still ahead of Bloomberg’s project of 2.57 RMB. The market has taken that as good news and shares are trading up three percent in the pre-market.
Alibaba’s core e-commerce business is its most lucrative and revenue in Q1 rose 61 percent annually to hit 69.2 billion RMB ($10.5 billion), while growth for it cloud computing business continues to impressive albeit at a slowing rate as the unit grows up. Alibaba Cloud recorded total sales of 4.7 billion RMB ($710 million) but a year-on-year growth rate of 93 percent is down slightly on 103 percent in the previous quarter.
Also in the last quarter, Alibaba took up an option to acquire one-third of Ant Financial, its financial services business that’s tipped to go public as soon as next year. The deal hasn’t closed yet, but when it does it will mean an end to “royalty and technology service fees” that Alibaba had earned from a previous agreement with Ant. Ant is valued at over $100 billion and some analyst estimates that the quarterly fees paid to Alibaba were in the region of one billion RMB, or roughly $160 million.
Looking at customer numbers, Alibaba said its active customer base in China grew to 576 million — an increase of 100 million per year and 24 million on the last quarter — while monthly active users reached 634 million, up 20 percent year-on-year and three percent sequentially.
The company doesn’t give international user numbers, but it said e-commerce revenue from outside of China grew 64 percent to reach 4.3 billion RMB, or $652 million.