Alibaba said its total gross value of goods (GMV) during the 11-day Singles Day event was 498.2 billion yuan or $ 74.1 billion. This beat last year’s figure of 268.4 billion yuan.
But he was also overshadowed by Huge drop in stock prices for Alibaba and JD.com which came after Chinese regulators released draft rules that, for the first time, define what constitutes anti-competitive behavior. Investors fear that Chinese tech giants could be caught in tight regulations that could hurt their business.
Hong Kong-listed Alibaba stock was up around 3% on Thursday as by JD.com Hong Kong-listed stocks rose more than 7%, showing signs of a rebound.
For Alibaba and JD.com, foreign brands were the focus. Chinese buyers who usually went abroad to buy foreign goods had to buy them from China, due to travel restrictions, Alvin Liu, chairman of Alibaba’s Tmall import and export business, told CNBC in an interview last week.
Alibaba said 250,000 brands participated in the Singles Day event this year, including 31,000 from overseas. The United States was the first country to sell to China by GMV, Alibaba said.
Michael Evans, chairman of Alibaba, said more than $ 5 billion of Alibaba’s 74.1 billion GMV total came from US brands.
“A Chinese strategy and a digital strategy are going to be essential in the post-pandemic world,” Evans told CNBC.
However, Singles Day isn’t just about boosting sales. Both Alibaba and JD.com see it as a way to acquire new customers, and the companies have focused on so-called lower-tier Chinese cities which typically have more price-sensitive consumers. The e-commerce giants see it as an essential element of their growth strategy.
“Many brands have realized the enormous size of the Chinese market, so they are customizing products for lower tier cities by leveraging JD’s data and our supply chain capabilities. ” Xu Lei, CEO of JD Retail, told CNBC in an interview broadcast Thursday..