Alibaba once again claimed the best e-commerce day of the day for singles, which eclipsed the 24-hour record of last year by 39%. The Chinese e-commerce giant has reported that its total gross merchandise sales for 2017 singles day reached $ 25.4 billion. To put these numbers in perspective, the combined sales of Black Friday and Cyber Monday in the US were $ 6.5 billion last year and analysts have estimated sales of $ 50 billion. Amazon Day at around $ 600 million in 2017.
Started by single students as an informal event, Singles Day – which takes place on November 11 of each year – has become an entertainment and entertainment that now reaches 190 countries. Digitally written, 11.11 represents "bare branches", a local expression for single men and women
Alibaba has made great efforts to make hours before the commercial event an entertainment show. The big international celebrities participated in a four-hour TV party in Shanghai with Jack Ma, the founder of Alibaba, before the stores went on sale. Viewers and those attending the event were invited, via interactive applications, to download coupons, raffle tickets, gift certificates and other promotions.
At exactly midnight, an increase in pre-orders contributed to sales of $ 1 billion on Alibaba's platforms over the first two minutes and $ 10 billion in just over a quarter of a year. ;one hour.
The business figure comes from both the Taobao consumer-consumer market of Alibaba and the Tmall business-to-consumer, which hosts many major international brands. Vendors get the revenue while Alibaba earns money through commissions and "store fees" charged to brands selling on Tmall. Taobao earns money by charging sellers ads that increase their visibility.
This year, 140,000 brands participated in Singles' Day on Tmall, up from 98,000 in 2016. Of these brands, 60,000 were international, up from 10,000 last year. Fifteen million products were available for purchase.
The growing middle class of China shows an appetite for foreign products. "More than 25 billion US dollars of GMV in a day is not just a business figure," said Daniel Zhang, C.E.O. of Alibaba after the event. "It represents the aspiration to quality consumption of the Chinese consumer …"
- Total orders reached 812 million, up 23% over last year.
- Ninety percent of purchases came from mobile devices.
- Alipay, which is managed by Alibaba's payment platform, Ant Financial, has absorbed 90% of the total mobile GMV.
- Singles day has been very lucrative for a handful of merchants, each of whom has raised more than $ 75 million in sales. A total of 167 merchants each generated 15 million sales.
- The China Post Office predicted that more than one billion parcels would be delivered across the country between November 11 and November 16.
Brick and Mortar Stores
Alibaba cemented links with small local stores across the country to help with logistics. Before this year's Singles Celebration, Alibaba sent teams of employees to help nearly 600,000 convenience stores upgrade their computer systems. These stores, many of which are in major cities, serve as storage and delivery centers. By using these retail stores, Alibaba can deliver popular perishable foods in an hour.
For example, lobster has been a great seller for the latest Singles' Days and fast delivery is a necessity. This type of cooperation between online stores and physical stores is part of Alibaba's "New Retail" strategy.
& # 39; New Retail & # 39;
Some industry analysts suggest that the growth rate of single day slows and that the holidays will soon experience the fatigue of buying in the United States associated with Black Friday and Cyber Monday. Ma and her management team focus on more sophisticated entertainment and more global brands to maintain consumer interest.
Singles day was the model of the first day of Amazon. As for Alibaba's strategy beyond the Singles Day, Ma is now taking the lead on Amazon by embarking on new industries.
In a recent letter to shareholders, Ma writes: "E-commerce is evolving rapidly to New Retail. The line between offline and e-commerce disappears as we focus on meeting each customer's personalized needs. In China, our New Retail initiatives are taking shape as a starting point for our "Five New" strategy, including New Retail, New Finance, New Manufacturing, New Technology and New Energy. "