Alibaba (NYSEL BABA) announced Thursday that it has raked in approximately USD75 Billion during China’s annual Singles Day online shopping sale. Amid the COVID-19 pandemic, this year’s event has taken on new meaning as companies strive to recover. The company noted a 26% increase during the one day sale, compared to the previous year.
“China’s economy has seen a strong recovery and Chinese consumers’ purchase behaviors have already returned to pre-pandemic levels, if not higher,” according to Xiaofeng Wang, analyst with market research firm Forrester.
Similar to Black Friday or Cyber Monday in the U.S., the singles Day event initially started as a discounted occasion on Alibaba’s platform. Since, many other Chinese e-commerce companies such as JD.com have joined in. JD reported a 32.8% rise in transaction volume compared to 2019’s USD40.4 Billion, higher than even alibaba’s growth.
In a survey performed by market research firm Oliver Wyman, 86% of customers revealed they are prepared to spend the same amount or more than last year’s Singles Day. According to Oliver Wyman partner Jacques Penhirin, chinese shoppers “continue to spend like crazy.”
“When pandemic makes international travel impossible, consumers will pivot these purchases domestically and particularly online,” Wang said. “That’s also why it’s the first year that luxury brands are heavily involved in Singles Day.”
The rivalry in the e-commerce world has grown as stay-at-home restrictions have surfaced throughout the last year.