Kevin Carter, Alibaba, Founder discussed on Bloomberg Businessweek
This happened yesterday. We didn't get a chance to talk about it. But I still want to talk about it because it's not just an a promotional event for the company and has a through on the health of the Chinese consumer and a read through here in the us on the US consumer. And of course, as you know, we're hitting up black Friday next Friday. So it's sort of a really good time to talk about all things retail than the consumer. And no better person to do that. Then Kevin Carter. He is the founder of EM Q Q. It's an emerging markets internet and e-commerce ETF. Kevin. You're joining us from San Francisco. Thank you. I want to recap held the singles event did go know was interesting felt like a push pull me on one hand they'd record sales but the growth rate in the gross merchandise value slowed. What do you make of it? Well, it was a big day sales Rover thirty billion dollars, which put it in perspective is. Close to twice as much as target doesn't a single quarter. So. A big thing. The the growth rate for the singles day sales festival has been less than the overall growth of the company by a wide margin for the last few years, and I think that will continue they had twenty seven percent growth, which is an incredible growth number. But the company overall is still growing at north of fifty percent recently. So I think in some ways the single day sort of outgrew the overall consumer market, but the consumer market remains quite strong talks me about the health of the Chinese consumer them because I know that Alibaba had a lower at some their forecasts. I believe for the twenty nineteen sales guidance. Are there concerns about the health of the Chinese consumer and does that sort of comeback here into the US or very separate? Well, it's definitely concern. I mean, the markets have been concerned about emerging markets in general they've been concerned about the consumer in China and other emerging markets. But the fact is that, you know, retail sales in China remain a over nine percent growth. So the story of the billions of people coming online as consumers is intact. You know, there's going to be times when that number faces a little bit of headwind, but the the secular story of all of these billions of consumers getting their first smartphone, which is basically the first computer getting their first internet access on that smartphone. And then, you know, basically becoming as they say digital natives were everything they do is on their smartphone. That story is is completely intact and quite strong. Kevin. What are the things I wanted to make sure we asked you about was this idea of packaging recycling because we're all. All about consuming. It feels like these days. Nowhere more as Taylor rightly pointed out at the top in China. Alibaba doing enough. There are other companies doing enough there to sort of deal with that side of the house. Well, I was glad yesterday that they actually talked about this. A billion packages yesterday. So obviously, there's a lot of cardboard going around. But but they get it there on top of it. They've talked about effective Daniels. Hang the CEO said that they have to redefine packaging, and they've they've even talked about how perhaps with some of their local delivery services. They would even eliminate packaging for certain items. So I think it's smart, I think it's important, and we applaud their focus on it. And then I'm sure they'll be a leader in making that happen. Kevin can tells quickly sites Alibaba what are some of the other internet companies that you're bullish on? Well, we're we're bullish on the space. I mean, the the you I believe the fastest growing sector ever in terms of public companies and their revenue growth, which is still growing it over thirty five percent. Ten cent is one that's been depressed quite a bit this year. That's the second largest Chinese Internet company. But there's so many this dot which is the. Kind of a newer lower ecommerce focusing on the second and third tier cities. That's almost exclusively mobile. So there's lots of companies were caught a libra in South America. There's Neander X in in Russia the same things that are happening here. Right. And all we have to do is turn on the television. Or listen to the radio any earnings curated the internet's taking over traditional consumption, whether it's fanciful services or media et cetera. All right, gotta go. Thank you so much Kevin Carter, founder of EM Kuku. Joining us from San Francisco. All right. Let's get to Martin.