Thursday , October 6 2022

Alibaba expands Singles' Dai to achieve record sales



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(Bloomberg) -Alibaba Group Holding Ltd. looks beyond the borders to turn its annual celebration of Singles' Dai into a global phenomenon.

This week, the Chinese Internet giant includes sales from Lazada, an online shopping center that controls. The world's largest global vendor is becoming a key part of the Alibaba growth plan, with the company's efforts to move to shopping malls, convenience stores and food delivery services.

The challenge for the online imperialists of billionaire Jack Ma is to interrupt another record of a sales transaction after a decade of exceeding previous results. With a pioneering trade war, a cooling economy and growing competition with less platforms such as JD.com Inc. (Br. 5 u Internet Shop 2018 Online Market) and Pinduoduo Inc., Alibaba is striving to add new growth engines. A November 11th retail celebration dedicated to an undisclosed nation has become an important communication not only for the company, but for the world economy number 2.

Dan Singl has now become a stage to Alibaba to showcase his abilities on all platforms, said Daniel Zhang, executive director at a Beijing press conference in October. He takes over after Ma leaves as executive president next year.

Zhang came up with the idea to transform Dan Singl into a shopfest ten years ago. Now that this year's one-day bazaar will become Ma as the last speaker, Zhang will have to prove that he can continue in the west. "We think 1 billion packages will become a daily event in the future," he said.

More than half a billion people are expected to visit Alibaba's website in search of Dison hair, baby formulas and gucci bags. Alibaba has managed to become a glorious growth for almost a decade, including a 39% jump last year to 168 billion yuan ($ 24.2 billion).

However, this year there is some uncertainty due to slowing down of the economy, real estate and trade tensions in trade with the United States that could affect Chinese consumption. The poorer economy and growing household debts have, to a certain extent, diminished consumer confidence in China.

The growth of retail sales on the Internet slowed to 24%, which is 12 percentage points in the second quarter, according to the National Institute of Statistics. Policy makers have made a number of changes, including reducing income taxes and tariffs for goods. This indicates that consumption can be picked up in the coming months; Earliest evidence can come from data during the Day of the Sun.

Alibaba reported quarterly profits and sales well above analysts' estimates, while its sales forecast for the year was reduced by as much as 6%, with Ma's warning that the economic clash between the two largest economies in the world could last 20 years.

For fuel growth, Alibaba expands its plaibook. Ele.me, a startup that took control this year, will provide delivery services for selected Starbucks stores in 11 cities in China. Rural Taobao will offer coupons for goods over 800 counties, and Lazada will promote promotions in six Southeast Asian countries, including Indonesia, Malaysia and Thailand.

Although it's been three years since Ma said she wanted the Singles Dai to be a global shopping event, that has not happened yet. International expansion will be a key part of Zhang's plan to continue to violate sales records. Last year, Russia, Hong Kong and the United States were the three largest regions outside China, buying goods during the annual event. Popular items purchased abroad include mobile phones, wool coats and knit sweaters, according to the company.

At the same time, Alibaba's efforts to enter the US are firing. He rejected the promise to create millions of jobs in the country, lose his American merchant's cannon, and cancel plans for Alipai's branch to buy MoneiGram. US President Donald Trump said in October he plans to withdraw from the 192-nation contract, which gives Chinese companies a discounted delivery rate for small packages sent to US consumers, making it difficult to penetrate the market.

Southeast Asia will give the clearest indication of the ability of Alibaba to go international. With the Singapore-based Lazadah, which is now completely under its wing, the region remains one of the company's bright spots.

The decline in the Chinese advertising sector also hurts Alibaba. A significant part of the income comes from merchants who spend money through the e-commerce platform to attract customers. This item, which belongs to the category "client management revenue", grew by 26% in the last quarter, compared to 35% in the previous period.

"The slowdown in macros has affected the sales performance of advertisers and therefore their spending budgets on the Internet," wrote Ella Ji, an analyst at the Renaissance in China.

Alibaba owns and operates Taobao and Tmall, which hold number 1 and number 2 on the page Internet retailer 2018 online market.

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