Daniel Zhang, CEO of Alibaba, speaks in front of a screen on which the total sales shortly after the end of 11.11. Or "Singles Day" shopping festivals 2018 in Tmall 11:11 Global will be displayed at over 213.5 billion yuan ($ 30.7 billion) Shopping Festival Gala in Shanghai on early November 12, 2018.
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The Singles Day or 11.11. Is the biggest shopping day of the year for singles, with Chinese e-commerce players led by Alibaba granting huge discounts on electronics and cars on November 1
It is widely believed that Singles Day was started in the 1990s by men who were single at universities.
In 2009 Alibaba launched its first shopping event that day and offered high discounts on its shopping platform Tmall. This year's gross merchandising value – or the value of merchandise sold through Alibaba platforms – was $ 7.8 million.
Last year it was more than $ 30 billion – a new record for the Chinese technology giant.
To Grow Further In the context of the ongoing US-China trade war, slowing Chinese growth and increased competition, Alibaba has expanded its offering to new product categories and experiences.
Star Power and Live Streaming
Alibaba usually launches Singles Day with a gala event that ends on November 11, just before midnight. Last year, Mariah Carey performed, and this year Alibaba signed US pop superstar Taylor Swift. The gala streamed online often shows some of the brands on offer, prompting users to pre-order.
Live streaming has become an important part of the shopping experience on Chinese ecommerce websites. Often, online personalities talk to their followers and talk about products.
In the livestream there is the possibility to buy the goods. The Alibaba, Taobao and Tmall platforms offer this feature. On Wednesday Kim Kardashian announced a livestream announcing that her fragrance brand NPP is on sale at Tmall.
Kim Kardashian performed a live stream on Alibaba's Tmall platform to announce that her fragrance series NPP would be available in e-commerce.
Tmall | Alibaba
companies sell articles of cars to cosmetics via Livstreaming. Alibaba announced on the first day of its pre-sale that more than 17,000 brands started livestreaming. The livestream of Chinese smartphone maker Xiaomi attracted more than 200,000 online viewers in the first 10 hours.
Short videos are also very popular in China, and commercial livestreams are picking up on this trend. Forrester senior analyst Xiaofeng Wang says consumers often receive exclusive discounts when watching live streams.
"Livestreaming Commerce has many exclusive offers that increase urgency, and livestreaming can take just minutes or 30 minutes." This is another motivation for consumers, "Wang told CNBC.
Other items for sale
Alibaba announced that 1 million new products will be offered during the Singles Day festival. In recent years, the categories of available articles have increased.
Users can buy cars, for example. In fact, Alibaba said that in one of its Taobao livestreams, 55 cars were sold in just one second. International car brands are also participating in this year's Singles Day.
In the meantime, Alibaba's travel arm offers packages for the 2020 Olympics in Tokyo. Disney also offers discounted tickets to its theme park in Shanghai.
International brands are expected to play a big role. In China, 60% of consumers plan to buy imported products, according to a 1,000-person survey conducted by management consultancy Oliver Wyman.
Of the 200,000 brands expected to be on 11.11. According to Alibaba, there are 78 overseas markets, 22,000 from China.
Singles Day used to be a phenomenon that was open only to Chinese consumers. However, Alibaba has sought to expand its reach to drive sales and electronic commerce. Giant continues to drive overseas business.
Lazada, a Singapore-based e-commerce site operating throughout Southeast Asia and majority owned by Alibaba, has its own sales.
And Alibaba owned AliExpress. will allow local dealers from Russia, Spain, Italy and Turkey to attend the 11/11 sales event for the first time.
What this means for the business.
Alibaba is expected to bring $ 37 billion GMV for singles that day. according to Forrester forecasts – this corresponds to an increase of around 20.5%. This growth rate is slower than the 2018 increase of 27% over the previous year.
Wang said this was not a problem.
"When a market matures, you can not continue to grow at a high level Double digits every time Just as the Chinese economy grew double-digit in the past, it is now single digits, it is natural, it is still growing, it is Still a big market, that's positive, "said Wang.
The December quarter is typically the highest in revenue for Alibaba, due in part to Singles Day.
While trading still accounts for the largest share of Alibaba's overall business, analysts see the fast-growing cloud industry as a key driver of long-term profits.
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