China’s biggest shopping festival on Single’s Day

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Just eight weeks after Alibaba’s record $25 billion public share listing in New York,the E-commerce giant Alibaba Group Holding Ltd (not only in China but also in the world ) reported more than 57 billion yuan in sales on China’s Singles’ Day, illustrating the buying power of the Chinese consumer and the importance of the event in the retail calendar.

Alibaba turned Singles’ Day, a Nov. 11 Chinese response to Valentine’s Day, into an online shopping festival in 2009 after Alibaba recognized its commercial potential, which was similar to Cyber Monday and Black Friday in the United States.

Let’s review the sales on Nov 11th since the shopping festival began. In 2009, Tmall (one of Alibaba’s online shopping mall) had a revenue of 50 million yuan ; In 2010, the figure increased to 936 million yuan; A year later, the sales of Tmall jumped to 3.36 billion yuan; while in 2012, the trading volume achieve rapid growth, reaching 19.1 billion yuan, including 13.2 billion yuan for Tmall and 5.9 billion yuan for Taobao(another online shops of Alibaba), moreover, the orders reached to 105.8 million. Last year, in 2013, The sales exceeded 100 million within a short period of 55 seconds, ending the day with 35 billion of sales revenue.

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pic 1: the sales for Tmall in recent years on Nov 11th. reference:http://www.askci.com/chanye/2014/11/13/144425vwhh_all.shtml

On Nov 11th, 2014, Sales number continued to update since the first second of the day, when the mystery unveiled, it showed that the revenue reached 57.1 billion, 1.6 times as large as the figure last year, of which the mobile sales account for 42.6 percent!

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pic 2: the sales for Tmall at different time on Nov 11th, 2014 vs 2013. reference:http://www.askci.com/chanye/2014/11/13/144425vwhh_all.shtml

The Founder and Executive Chairman of Alibaba Jack Ma spoke briefly to reporters before, saying he felt a bit nervous due to the higher pressures and expectations now that Alibaba is a listed company. What differed the 2014 shopping festival from the ones before was that Alibaba emphasised on its three key words: globalization, mobile and platform, which was also the future direction of the company.

Well, What do people think of this shopping festival in China?

On the one hand, there is no deny that E-commerce plays a significant role on stimulating domestic demand. Unlike traditional commercial activities, which are quite restricted by the geography, merchandise sales are available online after the transaction is completed through the logistics and distribution. In addition, Commodity prices are also very attractive, which stimulus consumer spending a lot. Therefore it is a good starting point to stimulate China’s domestic demand, especially in developing area.

On the other hand, According to a survey conducted recently,nearly 95% of Chinese Internet users believe that counterfeit goods are “running wild” online. Apart from the fake commodities, logistics also stand on the way of the whole sales process. Thus, in the future, e-commerce should focus more on “value competition” instead of only “price competition”.

reference:

1,cztv.com:  http://n.cztv.com/news2014/468904.htm

2,ifeng.com:http://hn.ifeng.com/jingji/jingjixinguancha/detail_2012_11/13/423002_0.shtml

3,askci.com:http://www.askci.com/chanye/2014/11/13/144425vwhh_all.shtml

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2 Responses to China’s biggest shopping festival on Single’s Day

  1. Pingback: Singapore Singles Day 11 Nov Celebration | Singles Day Bonanza

  2. Pingback: Alibaba and Others Push to Improve Delivery, on Singles’ Day in China | Singles Day Awareness

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