Saturday , November 27 2021

Alibaba Singles' Dai is the peak of $ 30 billion, but the growth rate is falling


The Chinese e-commerce giant Alibaba Group Holding Ltd on Sunday sold a record 213.5 billion yuan ($ 30.70 billion) in sales during the 24-hour retail malver, but annual growth fell to the slowest ever.

Buyers in China and around the world felt hot things, including iphone, furniture and powdered milk starting from the pavement, and Alibaba shot about $ 10 billion in the first hour after midnight.

Dan Singl, also called "Double 11", is the world's largest online sales event, which exceeds the sale of American Black Friday and the Ciber Mondai.

The Chinese event was originally a newspaper student holiday that celebrated itself, opposed Valentine's Day, but since then it has grown to a monthly online shopping festival that is the highlight of the 24-hour sales on November 11th.

This year, the company surpassed last year's full-year record of 168 billion yuan in less than sixteen hours.

Despite record growth, the annual sales growth rate fell from 39% to 27%, at the lowest level of analysts, and the smallest rate in the history of 10 years.

It came from the fact that the company struggles with the exact prospect of sales amid growing tensine in the US that have died from the Chinese economy.

Earlier this month, he revised his sales forecasts for the whole year by 4-6 percent, sending further blurring through the price of the company's shares, which this year fell by about 16 percent after nearly doubling in 2017.

To compensate, the company will soon take down less commissions from its platforms to keep brands and attract new customers, she said.

The rise in online sales also slows down in the entire table in eastern intercity cities, including Shanghai and Beijing, and Alibaba says nearly 75 percent of new users in the last quarter were in "less-developed" areas.

Daniel Zhang, CEO of Alibaba Group, delivered a speech during the Alibaba Group's global shopping festival 11.11. In Shanghai, China, November 12, 2018. REUTERS / Ali Song

While small appliances and cosmetics were strong on Sunday, sales on large tickets, including large appliances, slowed down with the decline in the housing market, Alibaba Vice President Joe Tsai told.

"If people do not buy new homes, they do not buy devices," he said.


Despite the slower growth, executive managers were optimistic on a press event in Shanghai on Sunday, attended by about 800 journalists who watched the live stream for sale.

"Today we have reached 200 billion (yuan), but we have to change. We must continue to change to 300 billion or 500 billion," said executive director Daniel Zhang, who was credited with the architect of the original Singles Dai sales.

Alibaba started this year's gala manifestation, featuring American singer Mariah Carey, Japanese Beionce impersonator and performance by Cirque du Soleil.

It is expected that this will be the final sale of the company in November with the founder and president Jack Ma at the helm, and Zhang will take over the next year as chairperson next year, the company said in September.

During this year's event, the company said it works with 180,000 brands in more than 200 countries, and shortly before midnight on Sunday, it sent more than a billion packages.

A disproportionately high number of sales was recorded in the first minutes of 24-hour spending, when transactions appear for items that are put on hold.

In the first minute and twenty-five seconds, the company settled about $ 1 billion after midnight.

Slideshows (4 Pictures)

Analysts say sales continue to be channeled to competing events, including the 618 festival, which was led by Alibaba competitor Inc. in June.

"With an increasing number of promotional events annually, consumers no longer feel that Double 11 is the only opportunity to get good customers," said Pedro Iip, a partner at consulting firm Oliver Viman.

"With that in mind, there are more consumers who still enjoy shopping at a double level than those who do not work," he said. ($ 1 = 6.9553 yuan)

Report by Cate Cadell; Editing by Nick Macfie and Alekandra Hudson

Our standards:Thomson Reuters Trust Principles.
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