Alibaba Achieves Record 83.8 Trillion KRW Sales in This Year's Singles' Day

COVID-19 Revenge Psychology Also Plays a Role
Likely to Be a Catalyst for China's Economic Growth in Q4

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Alibaba, China's No.1 e-commerce company, recorded a record-breaking sales of 498.2 billion yuan (approximately 83.8 trillion KRW) at this year's 'Guanggun Festival (Shuangsi, 11.11)' shopping event. It is expected that the Guanggun Festival will serve as a catalyst for China's economic growth in the fourth quarter.

Chinese state media such as People's Daily, Xinhua News Agency, and Global Times prominently covered the Guanggun Festival sales results on the 12th, reporting that despite the COVID-19 pandemic, the Chinese economy has solid consumer purchasing power.

According to the media, from November 1 to 11, the combined sales of Alibaba and its affiliated platforms during the Guanggun Festival reached 498.2 billion yuan, double the 268.4 billion yuan recorded during the same period last year. Although it is difficult to directly compare this year's sales with last year's because Chinese e-commerce companies started accepting pre-orders from November 1 to stimulate domestic demand, the transaction amount over the 11 days is considered astronomical.

In particular, considering that JD.com, China's second-largest e-commerce company, recorded sales of 271.6 billion yuan (approximately 45.6 trillion KRW) this month, the total sales during the Chinese version of Black Friday period easily exceed 100 trillion KRW.

Some analysts suggest that revenge consumption triggered by COVID-19 also contributed to the sharp increase in Guanggun Festival sales.

The Global Times commented on the Guanggun Festival sales, stating, "Online shopping has become the standard," and "This year's Guanggun Festival demonstrated the strong purchasing power of Chinese consumers."

The People's Daily devoted most of its economic section to detailed coverage of the Guanggun Festival results and changes in Chinese consumer trends.

Unlike previous years, there was a high demand for health and medical consumption, the analysis showed. It also explained that tourism-related products, which had been sluggish due to COVID-19, were spotlighted during the Guanggun Festival period.

Additionally, for the first time this year, an online business model (B2C) directly connecting users and producers using big data technology was introduced. According to state media analysis, this innovative model, which reduces costs such as price cuts and inventory logistics, gained popularity.

As Chinese consumer sentiment returns to normal, expectations for China's economic growth rate in the fourth quarter are rising. Considering that the fourth quarter accounts for about 30% of the annual growth rate, if the growth rate reaches around 6% this quarter, the annual growth rate is expected to achieve 2%.

In particular, it is anticipated that not only domestic demand but also exports will contribute to growth. Generally, China's exports increase significantly in the fourth quarter due to seasonal factors such as Christmas, and this effect is expected to be seen this year as well.

A source in Beijing said, "China's exports increased by 11.4% year-on-year in October, and exports, which had been slow, are now gaining momentum in the fourth quarter," adding, "Since consumption performance during the National Day holiday in October laid the foundation for the fourth quarter, there is a high possibility that China's economy will grow by over 2% depending on export performance."

This content was produced with the assistance of AI translation services.