Alibaba's annual e-commerce extravaganza is upon us.
And with the Chinese retail giant promoting more brands, retailers around the world are getting ready for the biggest shopping event of the year.
Alibaba's Singles' Day debuted on November 11, 2009, as a day for those who are not in romantic relationships to celebrate themselves by shopping online.The 24-hour phenomenon sets Amazon's Prime Day In fact, according to Adobe Analytics, sales are expected to increase compared to Black Friday and Cyber Monday, as well as Thanksgiving Day spending.
Adobe reviews online transactions from 80 of the Top 100 Internet Retailers in the US are forecasting $ 29 billion in online sales for the five-day period from Thanksgiving to Cyber Monday this year, with Alibaba's Single's Day in 201
"Think of 11.11 as the Super Bowl for Brands," said Jiang Fan, president of Taobao and Tmall Divisions of Alibaba, in an In terview with CNBC. "It's an opportunity to pull out all the stops to inspire Chinese consumers."
Alibaba promotes the event with outstanding fashion shows and concerts. This year American pop singer Taylor Swift will perform at the "Countdown Gala".
The company said it grew from 27 in 2009 to over 200,000 participating brands and from 60,000 in 2017 to over 200,000.
Impressive sales and all-out excitement make the event an event in which more and more American companies want to participate – even if they do not attend Prime Day.
About 24% of US retailers plan promotions For the Singles & # 39; Day, Adobe said after a survey of 402 US retailers with annual sales in excess of $ 500,000. This includes offers for Alibaba's platforms in China and for retailer websites in the United States. The new fashion website of Imran Khan, former manager of Snap, Verishop, for example, envisages a worldwide sale of 25%.
According to Alibaba, participating global brands include Apple, Estee Lauder and even some younger start-ups like Sneaker. "Some of the most innovative marketing campaigns and product launches come from US brands this year," Fan said. "I think all eyes are on [and 11.11] to see what the future of the retail industry looks like and how to best succeed in the Chinese market. "
Trade tensions between the US and China could hit American brands participating in singles "Day This Year," says a separate study by Alix Partners.
Seventy-eight percent of respondents believe US brand consumption will be impacted during Singles Day, while 70 percent believe the trade war will affect their overall purchasing. AlixPartners interviewed 2,022 Chinese consumers about their intentions.
Among the factors behind this mild mood is the possibility that American goods cost more than Chinese competing products, as well as Chinese consumers choosing non-US manufactured products or risk the radar devices of Chinese consumers fall behind.
"Companies need to be active if they do not already sell during this event, since attending Singles' Day has become a brand's barometer presence in the marketplace," said AlixPartners directors Jason Ong and Michael McCool in her report. "Brands are often judged by their success at this event, so they can not afford to miss a significant increase in sales."
The study by AlixPartners also predicted that apparel, footwear and sporting goods this year are bestsellers of beauty products and lifestyle electronics.
On Singles Day "[the] China's consumer market is huge, and US brands and retailers need to think about whether they want to expand to China – if they have products that have an advantage over local or other foreign brands," said Charlie Poon, an analyst with the advisory group Coresight Research, in an interview.
Alibaba shares have gained more than 36% since the beginning of the year. Market capitalization has increased to around $ 487 billion.