Biggest Bucks: Cyber Monday vs. China’s Singles Day

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Dec. 3 (Bloomberg) -- Brian Buchwald, co-founder & CEO at Bomoda, compares the sales data from Cyber Monday and China’s Singles Day and looks at which online retailer gets a bigger boost from the sales holiday. He speaks on Bloomberg Television’s “Bloomberg West.”

League of its own, sort of like the only day when the chinese population is focused on buying something?

That is an interesting point.

I would say that it actually is a fair comparison because there are other days during the year when chinese consumers are buying online.

In 2014 there will be more chinese consumers online dan there are total u.s. population.

If you look at it on an apples to apples basis, you have a greater risk that native americans buying but the chinese are coming online in droves.

How would you say that aly baba compares to amazon and ebay?

Alibaba does not actually sell merchandise, it's just runs websites where merchants sell merchandise which is different than what amazon does.

You are exactly right.

It depends on what kind of business you want to be end.

You are talking about a business with 50% operating margin.

You are talking about a business that makes its business office clear point advertising.

A business that is right around $165 billion worth of transactions which is roughly the size of amazon and ebay combined.

If you look at the amount of merchandise, they are aly baba websites.

It is far larger.

They are not taking pieces of the transaction.

What they have working for them is this amazing network effect.

The more sellers come online to use and the more they are willing to play -- paid to get higher rankings in advertising.

It creates a flywheel that works tremendously well.

Would you say that in terms of the business model that aly baba is more similar to google van amazon and ebay?

-- aly babaibaba is more similar to google van amazon or ebay?

You have displayed advertising that you see on the yahoo!

As well.

It is an interesting kind of dichotomy where they offer multiple advertising tools that really drive your sales and the platform.

It is also a lot more scientific because when you are buying on alibaba, you are getting a direct purchase.

What does that all mean?

Talk to us about the changing dynamics of the retail market in the u.s. versus china.

It was a record-breaking year for cyber monday, but the growth is slowing down.

I would assume it is the opposite.

You had 100% growth.

You're talking about 25% growth.

In china, you see nearly 100% growth.

Use e-commerce going all in when you are talking about online versus the u.s. where you see a show room he and these other trends.

In china, you don't have these storied infrastructure like you see here.

The brands are saying, online will be my past to the consumer.

This is in terms of the tolls, the delivery system, the opportunities for the consumer.

What about the demographics, are they similar or different?

Far younger.

The chinese consumers spending not just their own money but they are spending their parents and grandparents money.

China has had this one child system for so long, a lot of wealth is being pushed to that golden generation.

The average chinese consumer is a decade or so younger than the average western consumer.


It will be interesting to see how the numbers of all of and what they look like next year.

This text has been automatically generated. It may not be 100% accurate.


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