Alibaba’s Record Singles’ Day Sales Unlikely To Fuel China’s Retail Market

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Chinese e-commerce behemoth Alibaba smashed all the previous records by transacting goods worth $14.3 billion on Singles’ Day last week. The number is massive, especially considering the slowing Chinese economy which affects domestic consumption. Alibaba’s push for this year’s Nov.11 event was to grow it into a global event. The Hangzhou-based company had inked deals with over 20,000 foreign retailers to sell products on its Taobao and Tmall platforms.

China’s economic slowdown still biggest concern

However, experts believe that an impressive 60% YoY rise in Alibaba’s Singles’ Day sales doesn’t mean a boom for China’s retail market. The biggest long-term concern for the sector remains China’s economic slowdown, reports the South China Morning Post. Alibaba shares have declined more than 7% since the Singles’ Day. Shares of JD.com fell 5% in three days through Friday.

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