The Largest E-Commerce Retail Day Is Here And Singapore Post Limited Might Benefit From It

Today is 11 November 2016. 11 November is known as Singles Day in China and it is an occasion that the China-based eCommerce company Alibaba Group has turned into a global online shopping phenomenon.

The tradition to do heavy shopping online on Singles Day was started by Alibaba in 2009 and 11 November has since become the day in a year where the largest volume of eCommerce sales around the world would take place. Singles Day in 2015 saw Alibaba process US$14.3 billion in total sales from its online retail platforms, which include and It was a stunning 54% increase from the sales volumes seen in 2014.

Alibaba is based in China. But, the e-commerce industry seems to be growing really fast in the Southeast Asia region too. Sadly, there is no Alibaba-equivalent here in Singapore. Therefore, it might be hard for investors to gain exposure to the rise of e-commerce in the region. But, “hard” does not mean impossible.

Alibaba is actually one of the largest shareholders of the Singapore-listed Singapore Post Limited (SGX: S08), one of the leading regional logistics services provider. Alibaba has also been going on an acquisition spree across the region in recent years, snapping up eCommerce companies such as, one of the leading shopping platforms in Southeast Asia.

With many of Alibaba’s online retail platforms – including Taobao and Tmall – now shipping worldwide, there is a strong possibility that Singapore Post would be involved in fulfilling logistics for the Chinese company. Singapore Post itself is also focusing on e-commerce logistics services. For example, it recently launched its Regional eCommerce Logistics Hub to cater to the growing e-commerce market.

As an associate of Alibaba, Singapore Post looks well-positioned to grow as sites such as Taobao, Tmall, and Lazada gain even more popularity amongst consumers in the region. Singles Day will certainly be a busy day for all of Alibaba’s online retail platforms – it could be as well, for Singapore Post, given the aforementioned affiliations.

Singapore Post is currently trading at 15 times trailing earnings and offers a 4.2% dividend yield.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore analyst Stanley Lim doesn’t own shares in any companies mentioned.