Alibaba creates new record at its Singles' Day 11.11 2019 with GMV of $38.4B
Singles' Day is the biggest online shopping event globally and this year the performance of Alibaba allays any fears about a slowdown in the Chinese economy
Singles Day 2019, the 24-hour shopping bonanza by Alibaba, China’s largest online retailer has ended and created a new record with a gross merchandise volume (GMV) of $38.4 billion overtaking the 2018 number of $30.8 billion.
The 25.7 percent GMV growth recorded by Alibaba in 2019 for Singles Day sets aside the apprehension about a perceptible slowdown in the Chinese economy and the online shopping frenzy had participation from across the globe.
YourStory's Dipti Nair, who is reporting live from the venue, tweeted:
The number of delivery order at the end of 24 hours continuous shopping was 1.29 billion. The top four countries or regions which bought from China during this period were: Russia, Hong Kong, Taiwan and the United States.
The top three exported brands from China were: Xiaomi, Midea and Haier.
Singles Day 2019 got off to a blazing start and more importantly, this momentum continued right through with records broken by the hour.
The shopping, which began at 12 am, saw $2 billion GMV within two minutes of launch. The glamour quotient was added by pop icon Taylor Swift, who performed the opening act in the showpiece event.
More than half a billion shoppers, not just from China but from across the world, are expected to head to Alibaba’s ecommerce sites to purchase goods, ranging from toothbrushes to iPhones. International companies also flock to the company’s various online platforms, eager to sell everything from liquor to sports cars.
Started in 2008, Alibaba’s Singles Day is now regarded as a benchmark event for the Chinese retail industry and also an indicator of the health of this segment. The date, November 11, was chosen because it is written as four ones, or “singles”.
The event racks up bigger sales than Thanksgiving, Black Friday, and Cyber Monday combined. And, with more than half a day left, Alibaba seems on track to exceed 2018’s $30 billion haul.
“Our goal is to stimulate consumption demand and support lifestyle upgrade in China through new brands and products. We will enable merchants in China and around the world to grow their businesses through data-driven product innovation and consumer insights, as well as leverage our recommendation technology and content-driven user engagement to delight consumers in urban coastal cities and less-developed areas of China,” said Fan Jiang, President of Taobao and Tmall.
In 2009, this event recorded just $7.8 million GMV; in 2018, it brought in a record $30.8 billion.
This year, more than 200,000 brands are participating with more than one million new products on offer. This also includes 22,000 international brands from 78 countries, giving Alibaba cross-border strength.
It is expected that more than 500 million users will flock to the shopping sites, 100 million more than last year.
The top countries selling during the Singles Day sale were Japan, the US, Korea, Australia, and Germany. The top five Chinese brands to export products were Xiaomi, Midea, Haier, MIJIA, and Bosideng.
Given the scale of operations, the number of delivery orders exceeded 100 million within a few minutes of launch. This was 59 minutes faster than what Alibaba achieved in 2018.
Gap between Indian and Chinese ecommerce
This is the first Singles Day sale to be held without the presence of Jack Ma, the legendary entrepreneur and Founder of Alibaba, who has stepped down.
The Singles Day sale also reveals the wide gap between the Indian and Chinese ecommerce industry. The recently concluded festive sale period in India, spread over a period of five days, generated $3 billion in GMV.
Chris Tung, Chief Marketing Officer, Alibaba, said: “What started as a promotional activity in 2008 has become a phenomenon now.”
“Generation Z is the driving engine of booming consumption in China. They are a daring, adventurous group who are willing to try new products,” he said. Chris added that there was enough room for growth for Alibaba as 70 percent of new users were from lesser developed regions, which were now getting exposed to ecommerce.
However, Alibaba’s Singles Day sale is not just about consumerism; there is also a focus on the environment.
“Given its scale, minimising environmental impact is essential and our technology will ensure it is a green 11.11 Global Shopping Festival,” Fan Jiang said.
(Edited by Teja Lele Desai and Saheli Sen Gupta)