Workers wielding screeching hand-held wood sanders toil overtime in Cheng Huaibao's bunk bed factory, rushing to prepare for the wave of orders. Chandan KHANNA / AFP
Workers wielding screeching hand-held wood sanders toil overtime in Cheng Huaibao's bunk bed factory, rushing to prepare for the wave of orders. Chandan KHANNA / AFP

China’s ‘Single’s Day’ is an e-commerce spectacle with wasteful residue



Workers wielding screeching hand-held wood sanders toil overtime in Cheng Huaibao's bunk bed factory, rushing to prepare for the wave of orders about to break on manufacturing businesses like his across China.

China's November 11 orgy of e-shopping strikes Saturday, with hundreds of millions of consumers expected to seize on promotional discounts to place up to a billion pent-up orders for everything from food to furniture and electronics.

So-called "Double 11", or "Singles Day", is the biggest day of the year for Mr Cheng, accounting for around one-sixth of his annual orders and illustrating the impact that China's years-long e-commerce boom is having right down to some of the country's poorest villages.

Mr Cheng's town of Shaji in eastern Jiangsu province once relied on farming and, later, processing waste plastic.

Today, furniture production fattens wallets in Shaji, one of more than 1,300 communities across China dubbed "Taobao Villages", areas that re-invented themselves as manufacturing bases to supply e-commerce giant Alibaba's Taobao platform.

"It's a new way for people here to make more money and get rich. It has really changed people's fates," said Mr Cheng, 28.

The high-school graduate previously worked in an electronics factory and later sold home appliances.

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In 2010, he scraped together 2,000 yuan and began making children's bunk beds to sell on Taobao.

It was a propitious choice -- in 2016 China relaxed its "one-child policy" to allow families a second child. Bunk beds are suddenly hot.

Mr Cheng says his business is now worth 20 million yuan. He has purchased several homes and parks his Mercedes-Benz and Audi outside a factory that's grown to 25,000 square feet and 200 employees.

"I'm driving a one-million-yuan car. I never dared to dream of such a day before," he said.

Alibaba seized on Double 11 beginning in 2009 as China's online answer to the late-November US "Black Friday" shopping spree, finding a sweet spot combining China's love of a good bargain and the national addiction to smartphones and one-click payments.

Alibaba says Double 11-related sales last year reached US$17.8 billion in gross merchandise value, up 32 per cent from 2015 and roughly equal to the annual GDP of Mozambique.

This year's shopping fest will put an exclamation mark on Alibaba's growing dominance of commerce in China under boss Jack Ma, one of China's richest men.

The company's stock has doubled this year as revenues surged. It recently passed Amazon to reclaim the crown as the world's most valuable e-commerce company.

It is investing heavily in creating an entire user ecosystem encompassing cloud computing, artificial intelligence, automated stores using face-recognition, financial systems, logistics, data, entertainment, and is pushing into overseas markets.

Ma also is touting his latest pet vision, "new retail" -- linking up e-commerce with traditional brick-and-mortar stores as a hedge against a future slowdown in e-commerce growth.

Mr Ma said recently the number of packages processed by China's logistics industry -- fuelled by e-commerce -- will soon reach 100 million per day.

"Ten years from now, we may be faced with one billion packages per day," he added.

But environmentalists complain of the ecological harm and accuse Alibaba of fuelling over-production and over-consumption.

Greenpeace estimates Double 11 deliveries last year produced 130,000 tonnes of packaging waste -- less than 10 percent of which is recycled -- and said e-commerce is actually more carbon-intensive than brick-and-mortar shopping.

"Singles Day is a disaster for the environment. Alibaba isn't doing nearly enough," said Greenpeace East Asia toxics campaigner Nie Li.

Li Chengdong, a Beijing-based independent e-commerce analyst, said that despite appearances, Alibaba's future is uncertain due to tough competition from Chinese rivals like JD.com in e-commerce, and from Tencent in content and online payments, and that e-shopping's growth will slow.

"Alibaba will definitely speed up its overseas expansions. Domestic competition is too fierce," Mr Li said.

"Taobao played a big role in alleviating poverty in the countryside, that's true. But some Taobao villages are not doing as well as before due to competition."

Alibaba estimates "Taobao Villages" nearly doubled in 2016 from the previous year to 1,311, home to more than 300,000 online shops.

Shaji, an otherwise nondescript town of around 60,000 people, is dominated by warehouses and factories geared toward Taobao or companies selling packaging.

The town runs on a unique rhythm, with the streets deserted through much of the day as production is prioritised, followed by a burst of road traffic as shipments flood out.

Cheng admits his margins are shrinking, and that Double 11 does not even actually make him much money due to the cut-throat pricing and growing competition, but he remains upbeat.

"Even though we are under pressure from more merchants, we think there also are more customers now," he said.

"The road ahead remains long and I'm taking it step-by-step."

MATCH DETAILS

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Need to know

The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours. 

The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.

When to go: You can climb Kili at any time of year, but the best months to ascend  are  January-February and September-October.  Also good are July and August, if you’re tolerant of the colder weather that winter brings.

Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.

OIL PLEDGE

At the start of Russia's invasion, IEA member countries held 1.5 billion barrels in public reserves and about 575 million barrels under obligations with industry, according to the agency's website. The two collective actions of the IEA this year of 62.7 million barrels, which was agreed on March 1, and this week's 120 million barrels amount to 9 per cent of total emergency reserves, it added.

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

UAE currency: the story behind the money in your pockets
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A
Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Fixtures

Opening day Premier League fixtures for August 9-11

August 9

Liverpool v Norwich 11pm

August 10

West Ham v Man City 3.30pm

Bournemouth v Sheffield Utd 6pm

Burnley v Southampton 6pm

C Palace v Everton 6pm

Leicester v Wolves 6pm

Watford v Brighton 6pm

Tottenham v Aston Villa 8.30pm

August 11

Newcastle v Arsenal 5pm

Man United v Chelsea 7.30pm

 

Company name: Play:Date

Launched: March 2017 on UAE Mother’s Day

Founder: Shamim Kassibawi

Based: Dubai with operations in the UAE and US

Sector: Tech 

Size: 20 employees

Stage of funding: Seed

Investors: Three founders (two silent co-founders) and one venture capital fund

Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

Russia's Muslim Heartlands

Dominic Rubin, Oxford

The%C2%A0specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2-litre%204-cylinder%20mild%20hybrid%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20S%20tronic%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E265hp%20%2F%20195kW%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20370Nm%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh260%2C000%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20now%3C%2Fp%3E%0A
The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

Scorebox

Sharjah Wanderers 20-25 Dubai Tigers (After extra-time)

Wanderers

Tries Gormley, Penalty

Cons Flaherty

Pens Flaherty 2

Tigers

Tries O’Donnell, Gibbons, Kelly

Cons Caldwell 2

Pens Caldwell, Cross

The specs

Engine: 6.2-litre V8

Transmission: ten-speed

Power: 420bhp

Torque: 624Nm

Price: Dh325,125

On sale: Now

RESULTS

Main card

Bantamweight 56.4kg: Mehdi Eljamari (MAR) beat Abrorbek Madiminbekov (UZB), Split points decision

Super heavyweight 94 kg: Adnan Mohammad (IRN) beat Mohammed Ajaraam (MAR), Split points decision

Lightweight 60kg:  Zakaria Eljamari (UAE) beat Faridoon Alik Zai (AFG), RSC round 3

Light heavyweight 81.4kg: Taha Marrouni (MAR) beat Mahmood Amin (EGY), Unanimous points decision

Light welterweight 64.5kg: Siyovush Gulmamadov (TJK) beat Nouredine Samir (UAE), Unanimous points decision

Light heavyweight 81.4kg:  Ilyass Habibali (UAE) beat Haroun Baka (ALG), KO second round