By
Godfrey Benjamin
April 23rd, 2024
Both firms said they maintained good social and environmental sustainability in the course of the Singles Day event and in line with Beijing’s stance.
The November 11 Singles Day event ended with a positive tale to tell for two of China’s biggest retail outlets, Alibaba Group Holding Ltd (NYSE: BABA), and JD.com Inc (NASDAQ: JD). As reported by CNBC, the duo of Alibaba and JD raked in a total of $139 billion as retail consumers swarmed their respective platforms to purchase items at very discounted prices.
The coronavirus pandemic and its aftermath had no noticeable toll on consumers’ spending habits. Per the CNBC report, Alibaba reported its Gross Merchandise Value (GMV) for the duration of the Singles Day, also known as Double 11, as 540.3 billion yuan ($84.54 billion), up more than 8% from the 498.2 billion yuan reported in the year-ago period. After reporting $48.7 million prior to the end of the shopping event yesterday, JD closing data showed JD.com topped its GMV at 349.1 billion yuan ($54.6 billion). This year’s performance for JD is 28% more than its 2020 record of 271.5 billion yuan.
The Singles Day event was started by Alibaba as a one-day event, however, it has gradually been transformed into a multi-day shopping adventure. While JD.com started the event back at the end of October, Alibaba commenced its Double 11 shopping event at the beginning of November. The reported Gross Merchandise Value is not in any way a revenue for both companies, however, the sales volume highlights the boost in consumer demands across the board.
The shares of Alibaba and JD closed positively on the New York Stock Exchange and Nasdaq respectively. While the former ended yesterday’s trading session up 2.37% to $167.85, the latter soared 8.31% to $84.20.
Alibaba and JD Erring on the Positive Side of Beijing Crackdown
The Chinese government has been keeping close scrutiny on tech firms in the nation, spelling out a series of agendas that outfits including Alibaba and JD.com are making efforts to adhere to. Both firms said they maintained good social and environmental sustainability in the course of the Singles Day event, and in line with Beijing’s stance.
“This 11.11 Global Shopping Festival, we delivered steady and quality growth that is a reflection of the dynamic Chinese consumption economy,” Yang Guang, vice president at Alibaba, said in a press release. “We also leveraged the power of 11.11 as a platform to fulfill our social responsibility. This year’s festival was a meaningful milestone as part of our commitment towards building a sustainable future.”
JD on the other hand said it reduced carbon emissions by 26,000 tons during this Singles Day period compared with last year, a very promising effort in its bid to maintain the environmental sustainability.
The unique growth records of both companies came despite the crackdowns on technology firms, and the record highlighted more Gen Z buyers stacking up on tech-based items include products from Apple Inc (NASDAQ: AAPL) including iPhones and AirPods amongst others.