Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Dow Short-term Trend Analysis - Coronavirus Trigger a Stocks Bear Market? - 24th Feb 20
Sustained Silver Rally Coming? - 24th Feb 20
Should Investors Worry about Repo Market and Buy Gold? - 24th Feb 20
Are FANG Technology Stocks Setting Up For A Market Crash? - 24th Feb 20
Gold Above $1,600 Amid FOMC Minutes and Coronavirus Impact - 24th Feb 20
CoronaVirus Pandemic Day 76 Trend Forecast Update - Infected 540k, Minus China 1715, Deaths 4920 - 23rd Feb 20 -
Ways to Find Startup Capital - 23rd Feb 20
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Double 11 Record Sales Signal Strength of Chinese Consumption

Economics / China Economy Nov 12, 2019 - 07:07 PM GMT

By: Dan_Steinbock

Economics On Monday, Alibaba’s Single’s Day broke all records. Chinese consumption and ecommerce signal not just continued resilience but evident strength.

By 5 pm on Monday Alibaba Group had already broken last year’s record of $31 billion. And at midnight, the new record soared to $38.3 billion – 25 percent higher than last year.



Despite the continuing - and misleading - international headlines about China’s “slowing economy” and “consumption collapse,” Alibaba’s 11th Single’s Day gala alone generated more revenues than US Black Friday and Cyber Monday combined.

Alibaba’s Singles’ Day shopping festival is not just the world’s largest of its kind. It is a vital barometer of Chinese consumption amid the US tariff wars.

Double 11 Is Regionalizing and Internationalizing

According to Alibaba, more than 200,000 brands participated in the 11th Singles D - ay promotion – or the “Double 11” as it is popularly known - with 1 million new products being offered and over 500 million users forecast to spend; that’s 100 million more than last year.

This year Alibaba deployed its highly popular online shopping platforms, Tmall and Taobao, but also business-to-business ecommerce platforms, like AliExpress, and Lazada, the shopping site favored in Southeast Asia. As business began, the top regions in mainland in terms of transactions were Guangdong, Zhejiang, Jiangsu, Shanghai and Shandong. However, Alibaba is also tapping regional, even international consumers.

In the early hours, the most active overseas buyers included Hong Kong, the US, Australia and Japan. Even before the festival on Monday, some 64 brands, such as Apple, Lancome, Dyson and L’Oreal, garnered millions of dollars in Alibaba pre-orders, with Estée Lauder garnering a record $143 million.

Double 11 is now a big win-win opportunity not just for China but for international exporters from advanced and developing countries alike.

Ecom Success Reflects Chinese Cost-Efficiency, Innovation

In China, ecommerce explosion began in the mid-2010s. But as business has mobilized in the past half a decade, transactions occur smoothly with smartphones and volumes are soaring.

Today Chinese consumers use smartphones to browse top online shopping sites, such as Alibaba’s Taobao.com, and submit orders. It is the net effect of 15-20 years of innovation by Chinese smartphones, mobile operators and ecommerce giants.

In the early 2000s, NTT DoCoMo probably had the best mobile services, but since the Japanese operator failed to internationalize, it lost its edge. The Finnish Nokia developed popular 2G, even 3G services, but moved too slowly into smartphones.

That’s how Apple’s iPhone captured the early lead in smartphones. Yet, it could not respond to a new generation of Chinese smartphones by Huawei and its peers - Xiaomi, Vivo, and Oppo – which now dominate 75 percent of the global smartphone market and are more cost-efficient and more innovative. Nor could the US companies, despite their early lead in the fixed-line Internet, match the co-innovation of Chinese operators and ecommerce giants, such as Alibaba.

That’s why Chinese pioneers are already launching 5G services, while pioneering 6G platforms. And that’s also why the White House keeps resorting to anti-competitive means seeking to undermine Huawei’s legitimate success.

Explosion of Chinese online consumption

Through the 16 months of US tariffs, international headlines have predicted doom and gloom in China. And yet, Chinese industrial production picked up in September, despite reduced export growth. Third-quarter data reflected resilience of consumption. And while US trade wars have made consumers cost-conscious, retail sales climbed to 7.8 percent, thanks to slate of policy supports.

Alibaba’s success and the new Double 11 record mimic the broader consumption trends in China. The same goes for urbanization. As the growth momentum in the mainland has been shifting from the coastal first-tier cities to lower-tiered cities, gains in purchasing power in small-and-medium size cities drove Double 11 sales.

When Alibaba’s ecommerce gala began on Monday, the China International Import Expo (CIIE) had just ended in Shanghai. In that bonanza, the value of intended deals exceeded $71 billion, up 23 percent from the first expo in 2018 – mimicking Alibaba’s sales triumph.

The Double 11 and Shanghai CIIE records and the consumption data in the past few quarters offer abundant evidence that Chinese consumption is far more resilient and stronger than ideological eadlines in the West presume.

Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/  

© 2019 Copyright Dan Steinbock - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dan Steinbock Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules