By
Darya Rudz
November 1st, 2023
The Singles Day shopping event has grown to become an avenue where all e-commerce service providers struggle to win a good market share.
Chinese e-commerce giant JD.com Inc (NASDAQ: JD) has released its performance data per transaction volume for the ongoing Singles Day shopping event, topping its record in the previous year. As reported by CNBC, the retail giant has amassed a total of 311.4 billion yuan ($48.6 billion) in sales across its platforms as of 14:09 p.m. Beijing time, beating last year’s record of 271.5 billion yuan.
The Singles Day shopping event, also known as Double 11 is the equivalent of Black Friday and was started by Alibaba Group Holding Ltd (HKG: 9988) back in 2009. Since its inception, the shopping event has resonated across China with almost all retailers tapping into the event to bolster their sales volume for the year. The event has been rebranded in a remarkable way from the original idea, and some outfits, including JD.com, now run the event for a longer time span to enjoin more participation.
This year, JD.com conducted a presale from October 20th to 31 before the main event kicked off. The CNBC report attributed the impressive sales figure to the extended time frame the Single Day shopping festival was conducted for. While the $48.6 billion sounds over the top, there are still a few more hours for the event to run, implying the final sales figure is billed to exceed its current level.
The figure is not a factor in JD.com’s revenue, and it also does not take into consideration purchased goods that were returned. However, the sales figure is a clear indicator of growing consumer appetite and the offered discounts granting more buyers the access to acquire desired goods with ease.
The released sales figure is helping JD’s shares on the Nasdaq which has topped $81.02, atop a 3.42% growth in the pre-market.
Singles Day for JD and Competitors
The Singles Day shopping event has grown to become an avenue where all e-commerce service providers struggle to win a good market share. The competition that the event ushers in can be beneficial to all companies, depending on how desperate they are in catching the sprawling shoppers.
Buyers’ wants are obviously insatiable, however, shoppers will be more on the lookout for brands that have a diversity of products and at a cheaper cost to pitch tents with. The need to fulfill these demands stirs a healthy competition which the e-commerce giants are known to leverage.
Alibaba has not revealed its transaction and sales figures for the Double 11 event, and as such, it might be too hasty to conclude who the biggest winner of this year’s shopping festival is.