Chinese e-commerce giant, Alibaba filed a record of $30.7
billion in orders last Sunday during its annual “Singles Day” shopping frenzy,
but growth slowed from previous years.
The world’s biggest 24-hour shopping event, celebrating its
tenth year, kicked off early Sunday and once again shattered its own sales mark
as Chinese online buyers seized on promotions to snap up everything from
electronics to clothing and housewares.
Sales rose 27 percent, compared with 39 percent last year.
Although retail sales in China have been steady, the outlook
is uncertain as the economy slows and concerns rise over the impact of the
trade war with the United States.
Alibaba’s share price, which doubled in 2017, is down 16
percent this year.
Singles Day was originally set aside as an unofficial day
for China’s unmarried, but Alibaba latched on to it a decade ago as a shopping
promotion akin to the late-November US “Black Friday” retail crush.
Capitalising on the growing addiction to one-click
smartphone payments in China, it has proven a huge success.
But Alibaba earlier this month lowered slightly its
full-year revenue forecast, citing consumer uncertainty over the economic
outlook.
Company officials remained bullish on the future, however,
as Alibaba pushes new initiatives.
Besides expanding overseas, the e-commerce giant continues
to invest in China in what it calls “new retail”, which optimises in-store
sales and service using data culled online.
Hema, a grocery store launched by Alibaba in 2015 and one of
the “new retail” flagships, allows customers to shop and dine in-store as well
as order groceries online.
“I think you have to understand Alibaba and what Alibaba is
doing in the context of the long-term secular trend that’s developing in China,
which is the rise of the Chinese middle class,” Alibaba Executive Vice Chairman
Joe Tsai, said at a Singles Day gala.
“That trend is not going to stop, trade war or no trade
war.” NAN
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