Single's Day Shopping Sales Top $12 Billion in One Hour

-edited

China lead the world's largest one day sales event with Alibaba's annual "Single's Day" shopping event.

Alibaba's annual "Single's Day" shopping event tops Black Friday sales, in the US by a mile. Black Friday is the day after Thanksgiving.

Reuters reports Alibaba Singles' Day Sales Hit $12 billion in First Hour.

Chinese e-commerce giant Alibaba Group Holding Inc said on Monday that sales for its annual Singles’ Day shopping blitz hit 84 billion yuan ($12 billion) within the first hour, up 22% from last year’s early haul of 69 billion yuan.

Akin to Black Friday and Cyber Monday in the United States, Singles’ Day has been promoted as a shopping fest by Alibaba Chairman and CEO Daniel Zhang since 2009, growing rapidly to become the world’s biggest online sales event.

Also known as “Double Eleven”, the festival’s name originates from the calendar date 11/11, with the four ones referencing being single.

Alibaba saw sales worth $30 billion on its platforms on Singles’ Day last year, dwarfing $7.9 billion U.S. online sales for Cyber Monday. Yet the 27% sales growth was the lowest in the event’s 10-year history, spurring a search for fresh ideas.

The $486 billion Chinese retail juggernaut kicked off this year’s 24-hour shopping fest with performances by American pop star Taylor Swift and local celebrities like Jackson Yee.

Lovely.

More people than ever before rush to buy more junk they cannot afford.

Congratulations.

Mike "Mish" Shedlock

Comments (35)
No. 1-16
Realist
Realist

Much ado about nothing. As more and more people turn to daily e-commerce, Black Friday and Singles Day will begin to lose their importance.

The only important thing you said is that there is an attempt to turn Chinese consumers into wasteful spenders, like American consumers. I suspect this will take a long time, as the trend to over consumption is still in it’s infancy in China.

Casual_Observer
Casual_Observer

Consumption is a disease. The world is in the process of unleashing another 1.5B middle class consumers in China and India. The amount of garbage and plastic this will generate is about 5x what the US consumer generates. More consumption isnt the answer to the world's problems.

Blurtman
Blurtman

A $100 purchase adds one-half point to your social credit score.

Augustthegreat
Augustthegreat

“ More people than ever before rush to buy more junk they cannot afford.” I feel some sourness or jealousy in your tone. The chinese consumers have more powers than never before, and those “China crashing” experts are having complex feelings

leicestersq
leicestersq

Good to see people spreading the wealth. As for whether or not they can afford, I bet a lot can. As for those buying on credit, someone must think that they are good for it, and creditor and debtor together can clearly afford what they have bought.

Realist
Realist

Please remember that while e-commerce is very advanced in China, and even though 83% of all transactions are mobile payment (wechat and alipay), they are all debit transactions. The Chinese do not use credit cards or mobile credit payment systems. This reduces their ability to over consume. It appears as though Mish and others here, simply assume that Chinese consumers are like Americans, going into debt to consume, by using credit cards. This is not the case.

Germ
Germ

We're gonna' need a larger landfill :-((

KidHorn
KidHorn

This is actually good news. The world needs a country outside the US to have trade surpluses with. If China switches to a consumer based economy, it will solve a lot of the worlds economic problems.

ReadyKilowatt
ReadyKilowatt

And every CEO in the United States is dreaming of breaking into the market. And willing to do whatever the CCP wants to get a crack at it. Can't really blame them, if I could get a million people to give me a buck I'd be set for life. If I get a billion or so I could even afford that private jet I dream about...

leicestersq
leicestersq

Mish,

how about an article on negative bonds? Seems like the tide is turning and yields previously negative are now positive.

That has to mean a big bath for someone. Can you tell us what happens next?

Country Bob
Country Bob

There are roughly 330 million US residents (citizens, legal immigrants and illegals combined).

There are roughly 1.25 billion Chinese, about four times as many people.

If one takes the $7.9 billion US cyber monday sales (last year) and multiply by four, it would point to $31.6 billion in Chinese single day sales... versus the $30 billion that Alibaba reported. About expected, maybe a bit under.

Having said that, the US is no longer able to be the global consumer of last resort. Too much debt, and a failed education system (maybe education can be fixed, but its an overpriced mess right now and it takes time to produce better grads).

Its good for the world economy if the consumer base gets diversified away from debtors. Europe also has too much debt; its at the national level instead of consumer level, but the debt is there

Lori May Cameron
Lori May Cameron

The main thing is that purchases bring customers minute (in the worst case) pleasure and profit for sellers. To be honest, which of us would have resisted shopping at big discounts? All we can do is learn to separate the truly necessary from the unnecessary stuff. Articles and essays on https://haveringmotorvations.com/ about marketing and shopping psychology help me with this, so I just leave it here

numike
numike

Socialism American Taxpayers Are Subsidizing Ultra-Cheap Shipping From China For decades, the U.S. Postal Service has charged some countries less than it charges domestic shippers to move packages within the United States. https://reason.com/2019/11/11/american-taxpayers-are-subsidizing-ultra-cheap-shipping-from-china/

FromBrussels
FromBrussels

Oh thank gowd, the further destruction of the planet continues at full speed ! CHINA : the last nail in the earth s coffin ..... but who actually cares as long as Alibaba, Amazon, Apple and other sick consumerism representing stocks go up... and up...

AWC
AWC

No, no, no,,, y'all don't understand. The Chinese owe the debt to themselves, so it's all free stuff. Ya gotta get with the program here, folks.

Matson
Matson

"More people than ever before rush to buy more junk they cannot afford." Isn't that the American Way??