Published: Tue, November 14, 2017
Markets | By Rosalie Gross

Alibaba is slipping despite a record-setting Singles Day

Alibaba is slipping despite a record-setting Singles Day

Analysts have come forward to outline that it exceeds the combined sales for Cyber Monday and Black Friday in the United States.

Audio will be available later today.

Zhang Jingjing, a 30-year-old clerk for an engineering company, prepared for Singles Day by building a shopping list on Alibaba's retail platform Tmall and watching for when prices dip.

Singles Day has also morphed into "retail-tainment", with stars including Nicole Kidman and Pharrell Williams joining Alibaba chairman Jack Ma in a lavishly produced kickoff extravaganza.

The top countries selling in China throughout Singles Day include Japan, the U.S., Australia, Germany and South Korea. Sales hit the $1 billion mark just two minutes and one second into the event.

Ninety percent of transactions took place via the company's Alipay payment solution, up from 82 percent previous year.

More news: Keys to defeating Cleveland Cavaliers on November 13

Sales performance of Taiwanese e-commerce players on Saturday set new records last weekend, thanks to Taiwanese interest in the annual Singles' Day shopping festival that originated in China in the 1990s.

Meanwhile, as BABA's "new retail" strategy to lessen the gap between online and offline retail spheres has already expanded TAM past the online world, and Squali finds it already "seems to be starting to get traction", adding, "At this year's Singles' Day, brands were more ready, and better able to engage customers and improve shopper experiences to drive engagement and sales". "Single's Day is Olympic Games for Chinese merchants".

"In terms of scale it just dwarfs any other event out there", said Ben Cavender, Shanghai-based principal at China Market Research Group.

Last week during a visit to China by U.S. President Donald Trump, JD said it would buy $2 billion in U.S. goods, including $1.2 billion in beef, over the next three years. Alibaba has said Cainiao expects 3 million people to handle packages during the 24-hour-period. Boston Consulting Group forecasts online spending will rise by 20 per cent a year, hitting $1.6 trillion USA by 2020, compared with 6 per cent growth for off-line retail.

For example, Amazon has a market cap of $427 billion, whereas Alibaba is at a "mere" $265 billion, but they account for almost the same amount of total retail in the USA and China, respectively (over $4,800 billion each).

Like this: