Alibaba smashes its Singles Day’s record once again and successfully hits $25 billion.
The Chinese e-commerce company famous for its amazing sale and discounts offered on the Singles Day, managed to gather up 163.8 billion RMB, that’s about $25.3 billion, in GMV (gross merchandise volume). This huge number included its Taobao marketplace and Tmall brand store.
The company had a strong sales performance literally from the very first seconds of the day. After hitting a massive $1.5 billion in the first three minutes, Alibaba raked in $7 billion in 30 minutes and then $18 billion in just 12 hours. Shoppers from 225 countries and regions took part in Alibaba’s biggest online shopping day enabling the company to process 1.48 billion transactions during the 24-hour period. The Alibaba Cloud managed 325,000 orders at peak.
Over 140,000 brands including 60,000 international brands took part in the event. 167 merchants topped over 100 million RMB ($15.1 million) in sales each, 17 merchants generated over 500 million RMB ($75.4 million) each and 6 merchants surpassed 1 billion RMB ($150.9 million) each.
Alibaba’s outcome represents an impressive 39 percent increase on previous year’s Singles Day or 11/11 sales. Last year the company’s record was 120.7 billion RMB and $17.79 billion in GMV. This year Alibaba surpassed last year’s sales figure just within 12 hours of the 24-hour event.
The Singles Day is a Chinese holiday created by Chinese youth to celebrate the fact that they are single. CEO Daniel Zhang started this concept as a promotional stunt in 2009, when he was in charge of the Tmall business. The company is successfully hosting the event since then. This year’s Singles Day was an exceptionally huge success for the company. Alibaba’s 11/11literally pushed American online shopping days like Black Friday and Cyber Monday to a corner. Retailers drew in a record $3 billion on Black Friday and $3.45 billion on Cyber Monday making Alibaba’s sales sound even more mind-blowing.
— Alibaba Group (@AlibabaGroup) 11 November 2017
Another famous event that is put into the shade by Alibaba’s marvelous shopping gala is Amazon’s Prime Day that started as a gesture of gratitude on the giant’s 20th birthday.
Alibaba claims that it is growing remarkably over the last few years with improved figures breaking all previous records.
“Back in 2013, RMB 35 billion was our one-day GMV. Now we can achieve it in one hour,” said CEO Daniel Zhang.
The company had a pretty good year already, showing exemplary improvements in its revenue too. Alibaba’s revenue surged by 61%, thanks to its core business in China. The company reported total revenue of 55.1 billion RMB ($8.3 billion) beating expectations of 52.2 billion RMB.
Although the GMV is off the charts, it is not revenue for Alibaba. The e-commerce company basically makes money in two major ways: firstly, from Tmall by charging commission and ‘store fee’ from brands that are accepted in the brand store and secondly, from Taobao by charging merchants for their ads.
Analysts believe that another important metric in Alibaba’s ascendance is mobile. With the massive wave of customers reaching through the internet, there is a prominent increase in mobile users that tend to be more engaged. This is an enormous change in Alibaba’s favor is visibly hinted in the company’s productivity. The firm confirmed that 90 percent of the Singles Day transactions were done via mobiles, which was 82 percent for 2015 and 69 percent for 2015.
The company hosted a star-studded extravaganza attended by some well-known faces around the globe. Tennis star Maria Sharapova, American actor Nicole Kidman and Scarlett Johansson, rapper Pharrell Williams, ex-England footballer David Beckham, retired NBA player Kobe Bryant were among the many celebrities that appeared at the show. The famous band OneRepublic performed live at the event.
Alibaba also promoted its Singles Day with the martial arts movie ‘Gong Shou Dao’, starring the company’s founder Jack Ma with superstar Jet Li, who is also producing the film.
The outstanding results of Alibaba’s 11/11 speak for themselves. The company has now raised the bar for another year and the world is waiting excitedly to know what the upcoming year holds for the retail giant.