|ON SINGLES’ DAY, A MADE-UP HOLIDAY IN CHINA, REAL REVENUES FOR ONLINE RETAILERS|
Aruba, November 11, 2014 - China’s slowing economy got a little retail therapy on Tuesday, as Chinese Internet users showed just how ingrained online shopping has become in the country.
By early Tuesday afternoon, the Alibaba Group said the value of transactions on its Tmall e-commerce site during China’s unofficial holiday Singles’ Day hit 36.2 billion renminbi, or $5.9 billion. That total is already higher than the $5.75 billion of all payments processed by Tmall’s online payments system on the same day last year. Its smaller rival JD.com said sales in the first 10 hours of Tuesday was 2.4 times that of last year’s.
Although it began as a day on which China’s unmarried people shopped away their loneliness, Singles’ Day has become a full-blown Hallmark holiday because of big promotions and spending on marketing by companies like Alibaba. As China’s online shoppers showed Tuesday, the origin of the holiday matters less than the size of the discounts.
The day is crucial for many small- and medium-size retailers in China. Even if the so-called holiday is to some degree inauthentic, the revenues generated are very real.
For Sino Supreme, a seller of branded women’s handbags, the holiday could make or break the business. Ahead of Singles’ Day, Brian Lee, Sino Supreme’s chief executive, said the company’s 10 shops across China had stocked about 80 types of bags, while its online store had 400.
Read more/ source: http://bits.blogs.nytimes.com/2014/11/11/made-up-holiday-in-china-but-real-revenues-for-online-retailers/?ref=international&_r=0