November 16, 2017
China Singles Day was invented by e-commerce giant Alibaba, and the Hangzhou, China-based company again amassed staggering sales on the Nov. 11 shopping holiday this year, totaling $25 billion in sales. But results from China’s second-largest e-commerce company underscore growing competition with Alibaba and suggest just how vast the online opportunity in China actually is.
While a direct comparison is not possible because the company did not say how much of its revenue came on the actual day, JD.com, based in Beijing, reported it processed a bit more than $19 billion during the “Single’s Day period” that lasted from Nov. 1 through Nov. 12. And, on Single’s Day itself, JD.com tweeted that it fulfilled more orders by 11:15 a.m. than it did all day the previous year.
So, in less than two weeks, two companies generated around $45 billion in e-commerce sales—more than 55% of that in one day. As a comparison, all U.S.-based online retailers during the two months between Nov. 1 and Dec. 31, 2016 rang up $92 billion.
Selling in China presents some significant challenges, but companies that do not have a China strategy or are not in the process of implementing one could be leaving the opportunity for additional revenue on the table unnecessarily.