Monday , September 26 2022

Alibaba Singles Day is a maximum of $ 30 billion but growth rates are growing


SHANGHAI (Reuters) – Alibaba Group Holding Ltd, a massive Chinese e-commerce, signed a record of 213.5 billion yuan ($ 30.70 billion) for sale on Sundays during its 24-hour online 24-hour Frenzy Singles day, but annual growth came The event ended its slow-rate ever.

Shoppers in China and around the world included hot items including iPhones, furniture and milk powder starting before the morning, with Alibaba recording about $ 10 billion in sales in the first hour after midnight.

Individual Day, also known as "Double 11" is the world's largest online sales event, contrary to the sale of U.S. shopping holidays. Friday Black and Cyber ​​Monday with each other.

Originally, the Chinese event was a news student holiday to celebrate it's single, resisting Valentines Day, but since then it has grown to be a monthly online shopping festival that equates to selling 24 hours on 11 November.

This year, the company managed to excel last year's full-day sales record of 168 billion yuan in just under sixteen hours.

Despite the recording, the annual sales growth rate decreased from 39 per cent to 27 per cent, at the end of low analyst analyzes, and the minimum rate in the 10-year history of the event.

It is due to the fact that the company interferes with slower sales prospects among the increasing trade tensions of the United States that have highlighted China's economy.

Earlier this month, its full-year sales prospects were revised by 4-6 per cent, sending further spelling through the company stock price, which dropped by around 16 per cent this year after almost doubling in 2017.

To compensate for that, the company will take less commission of platforms in the near season to keep brands and attract new buyers, he says.

Online sales growth also slows across the board in the mega cities of the country, including Shanghai and Beijing, and Alibaba said that around 75 per cent of new users in the last quarter were in "less advanced" areas.

Daniel Zhang, CEO of the Alibaba Group presents a speech during the 11.11 global shopping festival Singles & Alibaba Group in Shanghai, China, November 12, 2018. REUTERS / Aly Song

Although equipment and makeup were strong on Sunday, sales in large ticket items, including large gear slowing down alongside a decline in the housing market, vice chair of Alibaba, Joe Tsai, told the press.

"If people do not buy new homes, they do not buy equipment," he said.


Despite the tight growth, executive officers were shocking on Sunday at a press event in Shanghai, attended by around 800 journalists watching a lively salespeaker.

"Today we reached 200 billion (yuan), but we have to change. We need to continue to change to reach 300 billion or 500 billion," said chief executive Daniel Zhang, and is credited to him as the architect of the sale of the original Individual's Day.

Alibaba started sales this year with a gala event that included the U.S. singer. Mariah Carey, Japanese Beyonce impersonator and the performance of Cirque du Soleil.

It is expected to be the last November sales of the company with the founder and chairman Jack Ma in charge, and Zhang will take over as chair next year, the company said in September.

During this year's event, the company said that she worked with 180,000 brands across over 200 countries, and just before midnight on Sunday he had sent over a million packs.

A disproportionate volume of sales is recorded in the first minutes of the 24-hour expenditure litter, when transactions take place for items that have been held.

The company settled around $ 1 billion within the first one minute and thirty five thirty after midnight.

Slide Show (4 images)

Analysts said the sale was still allowed by competing events, including the "618" festival led by Alibaba Inc competitor in June.

"With an increasing number of promotional events a year, consumers now feel that Double 11 is the only chance to get good deals," said Pedro Yip, a partner at the Oliver Wyman consulting firm.

"Having said that, more consumers who still enjoy shopping are 11 or those who do not," he said. ($ 1 = 6.9553 yuan)

Report by Cate Cadell; Edited by Nick Macfie and Alexandra Hudson

Our Standards:Principles of the Thomson Reuters Trust.
Source link