Alibaba is likely to put Singles Day Sales Record, despite economic headwinds
BEIJING-A weakening Chinese economy, weakening consumer feelings and a trade fight with the United States, is not likely to destroy Singles Day for
Alibaba Group Holding
Ltd.
who will try out a few new tricks to ensure that the 10th edition of his extravagance provides a sales record.
The event serves as a reminder to consumer products and investors in Alibaba's ability to move goods. Last year, he ordered a record of $ 25.3 billion in Singles Day sales and surpassed $ 1[ads1]9.6 billion as Americans dropped online last year in Thanksgiving's five days through Cyber Monday.
But when the mega hall starts at 12.00 on November 11th, with prices on bargain basement on Burberry scarf, New Balance shoes and even Buicks, many consumers will call back things.
A recent survey by consulting firm Oliver Wyman shows that 38% of Chinese millennia – a core group of shoppers for Alibaba – are planning to spend less this year. Overall, the survey believes that 30% of customers plan to spend less this year.
Zheng Miao, 48, from Chengdu said she usually spends hundreds of dollars on Singles Day every year, and favors clothes and household goods. This year, there is only one thing on her list: a spokesman.
"I just want to be careful about buying things I do not need," said Zheng, who owns a hot pot restaurant. "I have bought many things under the" Double Eleven "that I never used. They sat in a bunch of unopened homes."
E-Commerce Boom
Alibaba's gross merchandise volume – the value of the business transacted on the site – has jumped every single year on Singles Day.
Alibaba's Singles Sale Day
Despite such severe feelings, Alibaba faces annual pressure to retrieve the previous year's record, says business consultant and author Duncan Clark.
"It's almost like Frankenstein," said Clark. Alibaba "does not really expect what it all would be."
Singles Day began as a tongue-in-cheek holiday celebrating China's unique lonely hearts. Chinese name – Single Sticks Holiday "- is derived from date: November 11 or 11-11.
Alibaba, CEO Daniel Zhang, credited with the idea of making it a reality, has said that Singles Day was originally stated as a way to "get a little better ft to grow faster. "
" Before the first 11-11 for us, it was just about survival, "he said in an interview published by Alibaba.
A decade later, online stores have become so integrated into daily life that people need less an incentive to buy online. At a recent Beijing event, Mr. Zhang said that the shopping event must evolve.
"In the next five or ten years there will be new forms of internet, there will be new ways of living, there are new services," said Mr. Zhang. "This is our" Double Eleven ", which we can learn from the last 10 years, but also meet the future."
Alibaba hit Singles Day into a deal, but other Chinese e-commerce companies have entered the action. Here, workers are packing packages at a JD.com facility in Beijing last year.
Photo:
young / EPA-efe / rex / shutterstock / EPA / Shutterstock
To make sure that it beat last year's sales record, Alibaba tries a few new tricks.
For the first time, Alibaba's supermarket chain, Hema and
Yelp
-like online platform Koubei will run Singles Day campaigns. The food delivery service, Ele.me, will also offer discounts, including the sale of limited amounts of
Starbucks
cold brew coffee for 1 yuan, or about 14 cents.
About 200,000 stores across China will have QR codes that buyers can scan to find deals online, double the amount deployed last year.
In another, Lazada Group, an e-commerce subsidiary based in Singapore, will aggressively push Singles Day with its first 11-11 shopping campaign in six Southeast Asian countries, including the Philippines and Malaysia.
The offers remain the heart of the campaign. Discounts of about 500,000 items were rolled out in a pre-sales time that started on October 20th. Buick has already received orders for 7,000 cars and hotel chains like
Hilton Worldwide Holdings
Inc.
and
Marriott International
Inc.
has received advanced orders for 350,000 nights, said Alibaba on Thursday.
Other items available on its Tmall shopping platform: A whirlpool fridge and washing machine is reduced by more than 40% to approximately $ 3,160 and a hospital style that sells for one third of its fixed price.
In addition to discounts, Singles Day is also a star-acted play. Alibaba throws a Saturday evening gala in Shanghai, broadcast live on two television channels. Thousands of participants will see Cirque du Soleil performances and celebrities, including the Australian model Miranda Kerr, and singer Coco Lee will be present.
– Xiao Xiao in Beijing contributed to this article.
Write to Shan Li at shan.li@wsj.com
