Despite a civil war going on in Hong Kong and a national economic slowdown due to trade war, ‘Alibaba’ had a blast in sales. Chinese consumers set a record of $38 billion in the annual shopping bonanza, showing how strong the economy still is!
The Singles Day shopping event took place on 11/11/2019, which is known as Anti-Valentine’s Day around the world. The first billion in sales was gained even before the clock hit 69 seconds. Alibaba Group conducts this online shopping Singles Day sales year-to-year setting up one after the other record-breaking figures.
The growth rate was significantly lower than the one attained in 2018 but it was appreciable in such a difficult situation. Last year’s record was $30.7 billion. There was a live event conducted to market this day which was star-studded with Taylor Swift featuring as a show stopper. Heavy emphasis was laid into live streaming this shopping festival as well.
The Chinese e-commerce giant stated that its “Singles Day” sales were worth $268 billion yuan when last checked. In this Singles Day sales, the revenue exceeded the one earned in both US shopping holidays, Black Friday and Cyber Monday. The Alibaba Group had an amazing start with GMV(Gross Merchandise Value) hitting $12 billion in the first 50 minutes. Online shoppers stormed the “Tmall” website to buy the best products at affordable prices.
This 24-hour shopping strategy to increase the number of users exponentially is called Double-11. The customers earned via this event can then be retained for a long term by sustaining their interest.
Jack Ma, former executive chairman of Alibaba was missing from the biggest shopping celebration organized by his company. He later said, “$38 Billion of sales in 24 hours didn’t meet my expectations. I hope China grants a half-day holiday for this shopping festival!”
The announcement that broke the internet was, “$14 million worth of pre-orders streamlined before the opening second”. This gave a new boost to the already rewarding marketing strategy. The Chief Technology Officer of Alibaba said that 11/11 is like an airplane flying at turbo speed. The main focus of our company has always been making this apparent turbo jet more efficient.
There was a worry that American brands would face hostility from Chinese consumers amid the trade war. But, as Jacob Cooke, CEO of WPIC, an e-commerce firm said, “There’s no evidence of sentiment decline for US brands”. This milestone would definitely win the trust of investors when Alibaba begins selling shares worth $15 billion later this month. The credibility gained would complement the company’s vision of lasting 102 years!