{"id":5707,"date":"2018-11-15T05:13:00","date_gmt":"2018-11-15T05:13:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=5707"},"modified":"2022-11-14T05:19:47","modified_gmt":"2022-11-14T05:19:47","slug":"alibabas-singles-day-sales-are-the-indian-and-chinese-e-commerce-sectors-like-apples-and-oranges","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/alibabas-singles-day-sales-are-the-indian-and-chinese-e-commerce-sectors-like-apples-and-oranges\/","title":{"rendered":"Alibaba’s Singles’ Day sales: Are the Indian and Chinese e-commerce sectors like apples and oranges?"},"content":{"rendered":"\n

The numbers were 27 percent higher compared to the sales last year with $24 billion of gross merchandise value (GMV)<\/p>\n\n

Written By SABAHAT CONTRACTOR<\/p>\n\n

\n\n<\/div>\n
\n

Chinese e-commerce giant Alibaba sold a record $30.8 billion worth of products on its 24-hour Singles\u2019 Day sale.

\n\nThe numbers were 27 percent higher as compared to the $24 billion of gross merchandise value (GMV) of sales last year.

\n\nEven though China is facing major geopolitical and economic challenges, the story on Chinese middle-class consumption on November 12 was different altogether.<\/p>\n<\/div><\/div>\n\n

Last month, India also had one of its biggest online shopping festivals, but reported a fraction of this number at $2.3 billion during five-day period.

\n\nWhat got Alibaba to achieve the $30.8 billion GMV target in 24 hours is the trust placed by the Chinese consumers, the consolidation of online and offline retail, the categories of products, the income and expense of the Chinese consumers and others, according to the analysts.

\n\nWhile we can say that both China and India have almost the same population size, it will not be appropriate to compare the size of online e-commerce market of China and India.

\n\n\u201cChina\u2019s online e-commerce market was between $900 billion to 1 trillion in 2017 whereas India\u2019s e-commerce market was around $18-20 billion. There is a significant difference in size of the market in both countries,\u201d said Ankur Pahwa, Partner and National leader, E-commerce and Consumer Internet, EY.

\n\nIncome and consumption power plays an important role for a consumer. “The economies of China played an important role in the spending habits of the Chinese. The GDP per person in China is around $9000 whereas in India, it is around $2000,” said Pahwa.

\n\nDevangshu Dutta, Chief Executive of Third Eyesight said, “I don\u2019t think that Indian and China can be compared at par. There is a huge difference in their income and consumption profiles.”

\n\n\nBut what lessons should other e-commerce platform learn from Alibaba?

\n\n\nTrust plays a very important role in an online e-commerce market. Alibaba, with its closed ecosystem, has developed trust with its consumers. Indian e-commerce still lags behind on this factor.

\n\n\n\u201cQuality and trust played a very important role for Alibaba in China. Also, a large part of the Chinese economy is virtual. Whereas in India, a majority of buying is still from offline,\u201d said an analyst.

\n\n\nAlibaba said that more than 40 percent of consumers made purchased from international brands

\n.\n\n\u201cIndian e-commerce should give a mix of categories to its consumers. Proper curation of the inventory should be there in order to target Tier 2-3 cities. Another lesson one can learn from Alibaba is the dealings with the brands,\u201d said analyst.

\n\n\nAlipay plays an important role for Alibaba. \u201cAlibaba has integrated all ecosystems in its e-commerce business. From Alipay to its logistics. It has provided qualitative and seamless experience for its consumers,\u201d said an analyst.

\n\n\nOnline and Offline markets<\/b>

\n\n\nDutta added, “Alibaba has consolidated its hold on both the business and the consumer side in the Chinese ecosystem. India still has a fragmented consumer market, and online retail is only a couple of percentages of the total market, though the supply side is consolidated between the two foreign-owned businesses, Flipkart Group and Amazon. In India, I think both online and offline formats need to evolve together.”\n<\/p>\n\n

Source: moneycontrol<\/a><\/p>\n\n\n\n\n\n","protected":false},"excerpt":{"rendered":"

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