China’s Singles’ Day Has Become the World’s Biggest Shopping Event
Black Friday in the U.S. is still two weeks away, but elsewhere the holiday shopping season is well underway. Saturday marked the ninth annual Singles’ Day Shopping Festival in China, an online event orchestrated by Chinese e-retailer Alibaba that dwarfs the biggest shopping days in the U.S. While U.S. online retailers brought in nearly $4 billion on Cyber Monday in 2016, that figure pales in comparison to the $17.8 billion raked in on Singles’ Day last year. Both of those figures should continue to grow, supported by rising wages, a healthy consumer and a broad-based global economic recovery.
While holiday sales may get headlines, Capital Group equity analyst Anne-Marie Peterson doesn’t think investors should focus on such short time periods. “Retail investors should concentrate on companies with competitive advantages and sustainable long-term earnings growth within a competitive landscape that is increasingly moving online,” Peterson says.