Alibaba Group Holding Ltd. racked up $18 billion in sales within 12 hours of the Singles’ day, breaking last year’s record.
Singles Day is a Chinese event celebrated on 11th November that was created by some college students in the 1990s as a response to Valentine’s Day. It is a day to treat yourself. The day took its name from the way it’s written numerically as 11/11, which resembles the unattached ones. Although Alibaba did not create this holiday, the e-commerce company is well-known for the event since 2009.
Last year, Alibaba managed to rack up $18 billion during the whole 24-hours of the day, however this year the results showed mind-blowing improvement with $18 billion just within 12 hours. The company gathered $7 billion from merchandise sales in the first 30 minutes of the 24-hour event.
The Hangzhou-based company hosted a star-studded Festival with tennis star Maria Sharapova, American rapper Pharrell Williams and actor Nicole Kidman present to thrust the incredible sales. According to Alizila, a blog ran by the company, 82 brands including Samsung, New Balance and Shiseido topped 100 million Yuan. Customers from at least 225 countries and regions flooded the e-commerce site for discounted goods at a rate of 256,000 transactions per second. About 90 percent of the transactions were done via mobile phones, stated Alizila.
Amazon also has a special day of its own known as the Prime Day. While some other shopping days like Black Friday and Cyber Monday are celebrated in the U.S. Alibaba’s Singles Day’s sales were more than the entire Black Friday and Cyber Monday sales in the United States. Amazon’s Prime Day kicks off Monday night with additional 6 hours making it a solid 30-hour event. Amazon is an e-commerce giant with its hands reaching all around the globe; however, it still needs to work a lot on its Prime Day in order to catch up Alibaba’s spectacle.
Amazon’s Prime day is still in its infancy while Alibaba is pulling off the Singles Day since 2009. The key difference between both the events is that the Prime Day is open for Amazon Prime Subscribers only, while Alibaba’s Singles Day is open to all shoppers.
Alibaba’s is a little bit more progressed, said Kerry Rice, a senior analyst at Needham and Company. They have celebrities; there’s a whole online kickoff. They’ve made it a pretty big affair. Amazon has not quite gone to that length.
Alibaba’s CEO Daniel Zhang said that the company plans to expand the event globally. We want to make Singles’ Day a more global event, he said. We could take the galas overseas very soon.
The company had a pretty good year already by doubling its stock price since last year. Alibaba’s total valuation has effectively reached $475 billion.