Brands cash in on Alibaba’s big day
Alibaba recorded an eye-popping $25.3 billion in sales during its one day 11.11 Global Shopping Festival and brands such as Mondelez, Mattel, Gap, Gerber and L’Oreal were part of the action.
The massive sales figure during the 24-hour November 11 period was a 39% increase from the prior year when Alibaba executed the massive promotional effort on the same day. Mobile accounted for 90% of the volume.
“More than $25 billion of (gross merchandise value) in one day is not just a sales figure,” said Daniel Zhang, CEO of Alibaba Group. “It represents the aspiration for quality consumption of the Chinese consumer, and it reflects how merchants and consumers alike have now fully embraced the integration of online and offline retail.”
Alibaba said more than 140,000 brand and merchants participated, its payments platform, Alipay, processed 1.48 billion transactions and its logistics provider Cainiao Network processed 812 million total delivery orders.
The 11.11 shopping festival, also commonly referred to as Singles Day, began in 2009 with participation from just 27 merchants and was designed as event for merchants and consumers to raise awareness of the value in online shopping.
The event is modeled after Black Friday, according to CEO Daniel Zhang, who explained the origins of the event and how he sees it evolving to become a real global holiday in this piece.
Check out what senior executives from major global brands had to say about their participation and driving growth in China in this video.
And in case you missed the cover story on Alibaba in the July/August issue of Retail Leader click here.