Alibaba’s sales blitz hits record
Chinese firm reports Singles’ Day sales breaking 2017’s record despite economic headwinds
Chinese e-commerce giant Alibaba smashed the 2017 record for its Singles’ Day sales event on Sunday, surpassing 168-billion yuan ($24.15bn) sales in less than 16 hours.
Chinese e-commerce giant Alibaba smashed the 2017 record for its Singles’ Day sales event on Sunday, surpassing 168-billion yuan ($24.15bn) in less than 16 hours.
Singles’ Day, also called “Double 11”, is the world’s biggest online sales event, outstripping US shopping holiday Black Friday. The Chinese event was originally a novelty student holiday to celebrate being single, countering Valentine’s Day, but has since grown into a monthlong online shopping festival that peaks with a 24-hour sales frenzy on November 11.
A disproportionately large number of sales are recorded in the first minutes of the 24-hour spending spree, when transactions are recorded for items that have been put on hold.
The company settled about 69-billion yuan ($9.92bn) in the first hour of Singles’ Day on Sunday, up about 21% from 2017’s early haul of 57-billion yuan. Items selling well included smartphones and other electronics, but also staples such as milk powder and nappies.
While the company surpassed 2017’s sales just before 4pm, the rate is slower than last year when it broke the 2016 record about four hours earlier at midday.
Analysts say that despite strong growth, sales are likely to be hit by economic headwinds and new competition from competing sales events.
“With an increasing number of promotion events a year, consumers no longer feel that Double 11 is the only opportunity to get good bargains,” said Pedro Yip, partner at consulting firm Oliver Wyman.
“Having said that, there are more consumers who still enjoy shopping at Double 11 than those that don’t,” he said.
Alibaba kicked off this year’s sales with a gala event that featured US singer Mariah Carey, a Japanese Beyonce impersonator and a shoe-shopping-themed Cirque du Soleil performance.
It is expected to be the company’s final November sale event with founder and chair Jack Ma at the helm. CEO Daniel Zhang will take over as chair in 2019, the company has said.
While sales growth remains steady, Alibaba’s stock has dropped 16% in 2018 amid economic uncertainties linked to brewing trade tensions between China and the US.
Earlier in November, Alibaba revised down its full-year revenue forecast as it said sales of big-ticket items would be affected. To compensate, the company will take in less income from its platforms in the near term in order to retain brands and new buyers, it said.
About 180,000 brands were represented on Singles’ Day, Alibaba said.