E-Commerce

Chinese Singles Create Record of $38 bn Sales in 24 hr

Alibaba 4

Being single is not that bad a thing after all. This has been shown by the Chinese e-commerce giant Alibaba over the past 1 years consecutively. The company started a tradition known as the single’s day sales that take place every year on the 11th of November. The day is dedicated to the people who are not in a relationship and gives them a major reason to celebrate and be happy. Although it is a very new kind of a tradition called self-pampering, the concept dates back to many generations.

The western world considers the double 11 or November 11 sales as an eastern equivalent of the American Black Friday or Cyber Monday sales. However, it is way bigger than both of them combined. According to a report by TechCrunch, the two western sales events have generated revenues of up to $33 billion over a week, whereas Alibaba racked up more than that under 24 hours. Interestingly, the company completed sales of over $1 billion within a mere 68 seconds from the commencement and the first $10 billion in the next half an hour.

Alibaba has emerged as the largest players in the e-commerce sector worldwide surpassing the American tech giant Amazon. Currently, the Gross Market Value of Alibaba stands at a whopping $768 billion as compared to Amazon’s $239 billion.

The double 11 sales day of 2019 was the company’s 11th sales year and it is a special event. Several weeks of preparations and combined work of thousands of Alibaba employees are put in to make this a huge success. Having done almost everything perfectly to reach the billions of dollars in sales figure, Alibaba is still not content with its performance due to a major drawback.

The company officials believe that logistics is still not optimal for the company’s standards. The company’s largest competitors such as JD.com or Jindong and Pinduoduo have better logistics. Due to better control over the smaller cities where Alibaba claims to have a lesser grip than them.

The e-commerce giant has tried all it could to provide a smooth logistics experience and for that, it has also segregated its business quite well. For instance, goods from Chinese brands to international residents are sold through Aliexpress; Tmall sells goods from global brands to China; Taobao sells Chinese brands’ goods to people in China. These tactics have been successful for the brand as it can reach out to more people and also manage the sales very well. If the logistics get better with time, the sales will skyrocket as per the company’s estimates.

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