Singles' Day - Alibaba vs JD

Alibaba vs JD
It is Singles' Day again! This event originally popularized for people who are not in relationship to celebrate, has now become the largest online and offline shopping season in Asia. It is not an exaggeration that almost all retailers in Asia will participate in this event by offering huge discounts to drum up their sales.

Alibaba (HKEX: 9988) and JD (HKEX: 9618) being the top e-commerce players will undoubtedly take this event utmost seriously and prepare for it well in advanced. While competition nowadays are not just among themselves, they are often being watched due to their dominant position in this space. So how do both of them fare this year? Well, Alibaba reported 8.45% YoY growth in their Gross Merchandise Value (or GMV) while JD reported 28.6% YoY growth.

Alibaba vs JD Growth Rate

On the surface, it may look like Alibaba has lost its magic touch in this important event with this reported lower YoY growth. However I will like to point out that Alibaba growth is based on a very strong base in prior year (i.e. 85.62% YoY growth in 2020) and Alibaba is still leading in its GMV by a high margin when compared to JD. Furthermore, Alibaba is not resting on its laurels, it has already informed its shareholder that it will reinvest heavily back into its businesses. 

Hence, I will not be too concerned with this year's YoY growth for Alibaba. Having said that, it is worthwhile to keep a close watch on the company development like all other companies that we have invested. Personally, I am particularly keen to understand how the company is going to bring the consumers' experience to the next greater height. Can Alibaba "wow" us again in the coming years?

Thanks for reading and please follow my blog if you enjoy this article.

Disclosure: I own shares of Alibaba and as of this writing.

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