Chinese e-commerce giant Alibaba said on 11th November that sales during its Singles’ Day shopping blitz climbed to $23 billion, up by 25 percent, in the first 9 hours of the sale.
The sales revenue collected during the period was about two-third of the total revenue US e-commerce giant Amazon.com made during the latest quarter.
However, analysts believe that the total sales of the 24-hour event may not be greater than the event last year. This comes as the Chinese economy faces a gloomy period and moves towards a historic low in economic expansion.
The sales during the event have also allowed Alibaba Group Holdings Ltd to demonstrate its strengths while the company aims to put $15 billion worth of shares on sale in Hong Kong.
The company is also working on expanding operations into different industries and is making significant investments for the same. But about four-fifth of the revenue generated by the company still comes from its e-commerce operations.
Alibaba Singles Day 2019 event has been promoted by the company’s Chairman and CEO Daniel Zhang since 2009 and has become the largest online sales event in the world.
The event is also known as “Double Eleven” since it is held on November 11 each year. The four ones in “11/11” signify being single.
Sales growth from its online stores has been slowing for the company. As a result, it is attempting to expand to less developed areas of China.
General Manager of Alibaba’s Tmall, Alvin Liu, said earlier that customers from lower-tier cities and rural areas are buying an increasing amount of imported products from Alibaba online shopping store. Besides that, he added that more sales are being fetched from the younger generation.
Alibaba generated revenue worth $30 billion last year during the same event as compared to the $7.9 billion generated by Cyber Monday, another shopping event in the US. Although the revenue was 27 percent higher as compared to the year earlier, it was the smallest in 10 years of the event.
Citic Securities claim that the revenue for this year’s event could be 20 to 25 percent greater than last year. It would be limited by the slowing growth in the Chinese economy.
This year’s Singles’ Day was inaugurated with the live performance of US pop star Taylor Swift along with live-marketing of over 1000 brands.
According to the company, sales reached the $1 billion mark within one minute and eight seconds. In 9 hours, sales reached 158.31 billion yuan ($22.6 billion), the company said.
The e-commerce giant said that the expected amount of shoppers for this year’s Alibaba Singles Day event is over 500 million as compared to the 400 million last year.
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