Alibaba said its total gross merchandise value (GMV) was 498.2 billion yuan, or $ 74.1 billion, during the 11-day Singles Day. That surpassed the previous year’s figure of 268.4 billion yuan.
But it was also overshadowed by The tremendous share price is falling for both Alibaba and JD.com It did so after Chinese regulators published draft rules that for the first time define what constitutes anti-competitive behavior. Investors fear that China’s tech giants could get caught up in tough regulations that could harm their businesses.
Hong Kong-listed Alibaba stock rose around 3% on Thursday JD.com’s Hong Kong-listed stocks rose over 7% and showed signs of recovery.
Foreign brands were the focus for both Alibaba and JD.com. Chinese buyers who normally go overseas to buy overseas products should buy them due to travel restrictions in China. Alvin Liu, President of Alibaba’s Tmall Import and Export Business, said CNBC in an interview last week.
Alibaba said 250,000 brands attended Singles Day this year, 31,000 of which were from overseas. The United States was the top country to sell GMV to China, Alibaba said.
Michael Evans, president of Alibaba, said over $ 5 billion from Alibaba’s total of $ 74.1 billion in GMV came from US brands.
“A China strategy and a digital strategy will be crucial in the post-pandemic world,” Evans told CNBC.
However, Singles Day is not just about increasing sales. Both Alibaba and JD.com see it as an opportunity to attract new customers, and the companies have focused on what are known as lower-tier Chinese cities, which usually have more price-sensitive consumers. The e-commerce giants see this as a crucial part of their growth strategy.
“Many brands have recognized the vast size of the Chinese market and are adapting products for sub-cities using JD’s data and our supply chain capabilities.” Xu Lei, CEO of JD Retail, told CNBC in an interview that aired Thursday.