Business - - Nov 15,2016
Alibaba once again smashed its Singles’ Day record by registering a sale of $17.8 billion. This was a 32% gain as compared to the previous year’s sales.
Singles’ Day has now become one of the largest online shopping days in terms of Gross Merchandise Volume (GMV). In 2015, Alibaba’s 24 hour e-commerce earnings racked up to $14.3 billion on this particular day.
Around 82% of the sales accounting up to $14.6 billion were made from mobile devices. Alibaba is said to have expected sales over $20 billion this year, as in 2015 it had hit the previous year’s figure at midday. This year, Alibaba started its day on a high by hitting $5 billion in the very first hour, with orders coming at a rate of 175,000 per second.
Singles’ Day, held every year on 11th November, is a festival that is widespread among young Chinese people to celebrate the fact that they are still single. This day has gradually become the largest online sales day in the world and Alibaba’s sale, year after year, have acquired the topmost position in global e-commerce.
This figure, however, does not count for the total revenues that Alibaba has made on Singles’ Day. Alibaba only releases the GMV value. GMV represents the total value of goods that has been sold. Some have also questioned the accuracy of the data, claiming exaggerated sales numbers at Chinese online retailers. Sale of simulated products as original is also a concern in the industry.
Nevertheless, one cannot deny that every year Alibaba sets up a new milestone on Singles’ Day that no one can match worldwide. Alibaba started this one day shopping bonanza in 2009, and since then it has flourished year after year by offering special discounts and by including around 14,000 international brands in its stock. It has also been working to make this festival international by connecting with young middle class customers all across the world.