News Alert: Alibaba and JD reported positive GMV growth in Double 11
- Double 11 GMV growth of overall e-commerce platforms slowed to 2% y-o-y, according to Syntun
- Alibaba’s Tmall resumed positive GMV growth (vs flattish last year), in line; JD reported record-high GMV
- Alibaba, PDD and live stream platforms are more resilient amid consumption downgrade
Double 11 GMV behind market expectations. Double 11 GMV increased 2% y-o-y to Rmb1,139bn, according to third-party data provider Syntun. GMV of comprehensive e-commerce platforms (including Tmall, JD, PDD, VIP.com etc) declined by 1% y-o-y to Rmb924bn, while livestream e-commerce platforms (Douyin, Kuaishou, Taobao Live) grew by 19% y-o-y to Rmb215bn. By category, home appliances (15.6%), electronics (14.2%), apparel (14%), and cosmetics (8%) are best performing categories during the event. By platform, Alibaba’s Tmall and JD.com reported positive GMV growth without disclosure of specific numbers; PDD did not comment on the sales figures. Alibaba reported that Tmall’s GMV, number of visitors, number of orders and participating merchants, all recorded y-o-y growth during Double 11. Alibaba has 800m users participating in the events, the highest in the past few years. JD.com’s GMV and number of users reached record highs. Similar to last year, the festival started with a pre-sale period on 24 Oct and concluded on 11 Nov 2023.
Alibaba, PDD and livestream platforms are more resilient. Alibaba’s positive GMV growth should be in line with market expectations, in our view. Overall double 11 GMV performance looks behind market expectations. But leading players such as Alibaba and PDD as well as livestream platforms are more resilient. We believe consumers to stay engaged on e-commerce platforms to seek the best deals and value-for-money products amid macro uncertainties and consumption downgrade. Our preference is PDD (PDD US) > Alibaba (9988 HK/ BABA US) > JD (9618 HK/ JD US).