Today, as Alibaba and top rival JD.com Inc. bask in the glow of very strong third-quarter and Singles Day numbers, such worries are looking antiquated. Just as Amazon.com Inc. (AMZN – Get Report) has been able to accelerate its U.S. growth this year thanks to both the local e-commerce market’s growth and share gains made possible by its superior scale and resources, China’s e-commerce giants are seeing the good times roll on.
For Singles Day (Nov. 11, by far China’s biggest online shopping day), Alibaba reported its gross merchandise volume (GMV) for transactions settled via the Alipay payments platform grew 39% annually to $25.3 billion. That’s above the 32% growth registered during last year’s Singles Day, as well as the 22% GMV growth Alibaba’s Taobao and Tmall marketplaces saw in fiscal 2017 (it ended in March).
JD, which didn’t disclose Singles Day numbers in prior years, reports its GMV for the Nov. 1-11 period grew more than 50% to $19.1 billion. That’s a little better than the 46% GMV growth JD saw in 2016.
JD’s shares rose 3.5% on Nov. 13 to $41.34, following both the release of its Singles Day event data and a better-than-feared Q3 report. The company’s sales rose 39% annually in Q3 to $12.61 billion, slightly topping a $12.59 billion consensus. GMV rose 44% to $32.9 billion.
Source: The Street