Also known as “Double 11” for the November 11 date, the event launched in 2009 by e-commerce giant Alibaba kicked off at midnight and ended up shattering the previous year’s sales mark, as it does every year.
Alibaba said that by midday Saturday the gross value of sales processed by Alipay, its online payment system, had equalled the $17.8 billion logged over the full 24 hours last year.
The 2016 amount was itself a 32 per cent increase over the previous year and equal to the annual economic output of Mozambique.
The yearly display of rising Chinese consumer spending power has become a key date for manufacturers and retailers in the country, accounting for a significant share of annual orders for many businesses.
Alibaba rivals such as JD.com and a range of retailers have joined in, with merchants slashing prices to move goods.
Five minutes after midnight, Alipay was processing 256,000 payment transactions per second, doubling last year’s high-water mark, Alibaba said.
“At 12:07:23 am, the number of payment transactions processed by Alipay surpassed 100 million, equivalent to the total number of payment transactions processed during 2012,” it said.
More than 90 per cent of orders were placed via mobile, the majority on Alibaba’s main e-commerce platform Taobao.com.
More than half of China’s 1.3 billion people use smartphones, which have become central to daily life, used for messaging, shopping, news and entertainment, ordering taxis and meals, and serving as digital wallets for a range of point-of-sale purchases. The day’s transaction volumes are pumped up by many Chinese delaying purchases of mundane items like rice and toilet paper to take advantage of cut-rate prices. Alibaba launched “Singles Day” as the Chinese online answer to the late-November US “Black Friday” shopping rush.
It has capitalised on China’s burgeoning spending power, the Chinese love of a good bargain, and the growing national addiction to one-click smartphone payments.
E-commerce’s huge growth in China has put New York-listed Alibaba neck-and-neck with Amazon as the world’s most valuable e-commerce company, while also making Nasdaq-listed JD.com a Fortune 500 company.
Alibaba and JD stock have both doubled this year as revenues surged.
Alibaba is investing heavily in creating an entire user ecosystem encompassing cloud computing, artificial intelligence, automated stores using face-recognition, and is pushing into overseas markets under much-travelled boss Jack Ma, one of China’s richest men.
But environmentalists accuse Alibaba and other e-tailers of fuelling a culture of excessive consumption and mountains of waste.
Greenpeace said “Singles Day” deliveries last year created 130,000 tonnes of packaging waste — less than 10 per cent of which is recycled.
It said e-commerce is actually more carbon-intensive than brick-and-mortar shopping, calling “Singles Day” a “disaster for the environment”.
But the growth of Chinese e-commerce has proved a boon to hundreds of once-backward interior town and villages now dubbed “Taobao villages” after re-orienting their local economies towards manufacturing for online buyers. Analysts say Alibaba will take “Singles Day” global as Chinese e-commerce growth rates are expected to slow in years ahead.