Alibaba Group Holding expects to record double-digit sales growth for its Singles’ Day campaign in Hong Kong, following the launch of a 1 billion yuan (US$142 million) promotion to waive delivery charges for Taobao users in the city.
The Hangzhou-based e-commerce powerhouse on October 1 started a three-month promotion to waive delivery fees for certain Taobao orders that cost more than 99 yuan, covering categories such as fashion accessories, electronics, skincare and cosmetic products. Alibaba owns the South China Morning Post.
Taobao, mainland China’s largest online shopping platform, has so far achieved double-digit, year-on-year growth in both gross merchandise value (GMV) and order volume in Hong Kong on the back of that promotion, according to David Ye Jianqiu, general manager of Tmall Taobao World, a unit of Alibaba International Digital Commerce Group (AIDC).
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
“The user feedback on this free shipping plan is quite positive,” Ye said in a media briefing on Thursday, adding that he is confident of Taobao posting double-digit, year-on-year GMV growth during its Singles’ Day campaign in the city.
Ye said Taobao now counts more than half of Hong Kong’s population as users, which makes the city “one of the most important markets for Alibaba”.
Alibaba’s latest promotion for Taobao users in Hong Kong reflects the group’s efforts to boost services outside its home market through international e-commerce unit AIDC, as competitors on the mainland have also stepped up their operations in the city.
The company last month said it has earmarked at least 40 billion yuan worth of resources to help merchants on Taobao and Tmall, as well as lure more consumers to these platforms, during this year’s Singles’ Day shopping festival.
In July, Alibaba announced a pan-clothing global free shipping plan for eligible merchants on Taobao and Tmall, so they can sell their products directly to consumers in several markets outside the mainland.
Taobao and Tmall merchants who sell goods in the pan-fashion category – including men’s and women’s garments, sports and outdoor apparel, shoes, bags and accessories – are eligible to take part in this programme, according to Alibaba. This arrangement currently covers a few markets in Asia, including Hong Kong, Taiwan, Singapore, Malaysia and South Korea.
Alibaba rival JD.com last month announced that it will spend 1.5 billion yuan to roll out new services in Hong Kong, including free door-to-door deliveries for certain orders above 299 yuan.
Shanghai-based Pinduoduo, run by discount-shopping giant PDD Holdings, started offering delivery and payment options tailored for Hong Kong consumers in 2022.
Alibaba, JD.com and Pinduoduo on Monday kicked off their respective campaigns for Singles’ Day, the world’s largest annual shopping festival. These platforms also started their campaigns much earlier than previous years, showing intense competition in the industry.
More from South China Morning Post:
- Alibaba’s new Singles’ Day focus: protecting sellers from price wars
- Alibaba, JD.com, Pinduoduo launch campaigns for Singles’ Day shopping festival on same day
- Alibaba, JD.com take e-commerce battle to Hong Kong as mainland China market matures
- Alibaba sets US$142 million promotion to waive delivery fees for Hong Kong’s Taobao users
For the latest news from the South China Morning Post download our mobile app. Copyright 2024.
