Courier, express and parcel (CEP) operators in China and around the world have launched a massive effort to sort and deliver more than 2.8 billion goods bought during this year’s record-breaking Singles Day sales extravaganza on Monday.
Alibaba increased sales by 26% to a new record of RMB268.4 billion (US$38.4 billion) in gross merchandise volume during its 24-hour ‘Global Shopping Festival’ on November 11, while the number of orders processed by logistics subsidiary Cainiao Network rose by 24% to nearly 1.3 billion.
Rival JD.com, which stretched its Singles Day sales over 11 days (November 1 – 11), increased its sales by 28% to RMB 204.4 billion worth of goods, although it did not disclose the number of orders.
With other Chinese retailers also running 11.11 sales events again this year, the overall number of deliveries linked to the event could reach a massive 2.8 billion between November 11 and 18, according to the country’s postal authority, the State Post Bureau. Postal and express delivery companies handled 535 million express shipments on November 11 alone, it noted.
With the overwhelming mass of Singles Day orders destined for Chinese consumers, the country’s big delivery companies have hired an additional 400,000 workers and 120,000 vehicles to handle this year’s flood of packages, according to the State Post Bureau, which is closely monitoring delivery operations. More than 200 intelligent distribution centers have gone into operation, along with several unmanned warehouses operated by warehousing and distribution robots.
Alibaba focuses on ‘green logistics’
Market leader Alibaba announced that more than 200,000 participating brands sold goods worth a total of RMB268.4 billion (US$38.4 billion) this year (based on payments through Alipay). Fifteen retailers each topped RMB1 billion (US$143.0 million), including Apple, Bose, Estée Lauder, Gap, H&M, L’Oréal, Levi’s, MUJI, Nestlé, Nike, Philips, The North Face, Under Armour and Uniqlo.
Most of the expected 500 million buyers, who bought a total of 1.292 billion items, were from China, including many new shoppers from lower-tier areas. The top five countries selling to China through the group’s cross-border platforms (by GMV) were Japan, United States, South Korea, Australia and Germany.
“Today we showed the world what the future of consumption looks like for brands and consumers,” declared Fan Jiang, President of Taobao and Tmall. “We are meeting the growing demand of Chinese consumers and helping them upgrade their lifestyles, while introducing new users to our digital economy from across China and around the world.”
Alibaba also emphasised that it is focusing heavily on sustainable deliveries this year. “Green is the most important keyword for this 11.11,” Jiang said. “We’ve shipped 1.292 billion packages, but through this we want even more to promote the concept of green consumption.”
Cainaio and its express delivery partners have set up 75,000 permanent recycling stations where consumers can recycle packaging from their 11.11 orders and future purchases. Consumers will also be rewarded with “green energy” points on Ant Forest for their recycling efforts.
JD.com delivers 90% of Chinese orders same-day or next-day
Meanwhile, JD.com took full advantage of its in-house nationwide logistics network and succeeded in delivering Singles Day orders to 90% of China’s administrative districts and counties at same- or next-day delivery speeds. In all, 92% of first party orders were delivered on the same day or the next day.
The company also stepped up its sustainable supply chain efforts by reducing packaging, using recyclable materials and other measures. “Our commitment to sustainable logistics and supply chain is bringing us very tangible results,” said Feng Gao, Head of Green Stream Initiative, JD Logistics. “A clear example of this is that over the course of the Singles Day sales period which we are just wrapping up, we’ve reduced 40,000 tons of delivery waste through implementing recyclable packaging, using slimmer tape, going paperless and more.”
In terms of sales, JD.com said this year’s highlights included many more purchases from lower-tier cities, more purchases of quality products, and deeper omnichannel integration across the business.
