Alibaba generates $10 billion Gross Merchandise Value within an hour of its 11.11 Single’s Day Sale
Sales are the best and the trickiest things to ever happen to us. We buy things we might never even use just because it is selling for half its price for a limited period of time. According to the law of demand, lower the price higher the demand. Sellers have used this to their advantage and attracted consumers to buy from them. At the end of the day, both buyers, as well as sellers, go home happy. Nowadays, there are all types of sales. End of a season, the start of a season, Black Friday, 11:11, and whatnot.
China has a celebration for singles. Every eleventh November, China celebrates being single. The number ‘1’ shows being alone which explain choosing 11.11 as the date of the holiday. This holiday has become an excuse for setting up large sales at offline, as well as online, stores. Alibaba Group, a Chinese Online store specializing in e-commerce, retail, Internet, AI, and technology, has taken advantage of this opportunity as well. The event began in China but is being adopted by other nations, too. Japan, Australia, and the US have also started celebrating the single life.
According to a report by Economic Times, the tradition of Singles Days Sale began back in 2009. The total sale that year was $7.8 million in GMV. This year, though this has risen to $25.3 billion in 2017. This year, sources from Alibaba Groups have reported that around 180,000 brands and 200,000 part stores have participated. These brands were Chinese, as well as international. The whole event is termed as ‘Olympics of Brand Engagement’ for this reason.
Top companies that were a part of this huge economic activity include Apple, Xiaomi, Samsung, Sony, Phillips, and Dyson. The top categories sold and browsed were mobile handsets, audio equipment, diapers, women’s fashion, and computer accessories.
Alibaba Group claims to generate huge amounts of gross merchandise value (GMV) this year. To be specific, the made $10billion within an hour of going live. Alibaba Groups is the biggest e-commerce store in the world today. They claimed that the sales rose past 1 billion dollars in the first one minute and 25 seconds. These sales are bigger than America’s Black Friday and Cyber Monday combined. That is how big we are talking.
Alibaba Group hosted the countdown to the official launch gala on Youku, its online video streaming platform. It was broadcasted on two major Chinese TV station as well. This year the launch was celebrated with guest appearances and performances from big stars. Mariah Carey, Cirque du Soleil, and Miranda Kerr performed at the event.
The gigantic rise in sales is because of a larger selection of brands. These brands include those which sell online as well as offline. Alibaba Groups will be leveraging its investments in Lazada Group (a branch by Alibaba Group). It will also be taking an initiative of reaching out to Southeast Asian markets. Lazada will hold its first 11.11 Singles’ Day Festival this year in Singapore, Malaysia, Thailand, Indonesia, Philippines, and Vietnam.