Tuesday , July 5 2022

The $ 25 billion Chinese festival explained – TechCrunch


This Sunday is November 11th, a good date in the Chinese technology community because it marks Valentine's Day, the world's largest online shopping day. This year is particularly shocking because it will be the tenth edition of the annual event – also known as Double Eleven – since it was created by Alibaba, a Chinese ecommerce giant.

Day One day is a huge job today. Last year, Alibaba sold more than 25 billion dollars of goods, while 11.11 moved out of China to other regions within Asia and beyond. The company has steadily increased its sales from year to year, so it is fair to expect $ 35 billion or more in trade this week, although there are doubts about the economy of China and a continuous trade war with the United States.

We dug into the phenomenon, so this year, you are well prepared for what to expect.

What is that?

The event is similar to Black Black and Ciber Mondai in the United States, but is 2.5 times larger than both dates. Alibaba discounts a range of products through its online sales platforms that include the Taobao Market, the Tmall Branding Store, AliEppress International Services and, more recently, its global businesses. Among them are Lazada in Southeast Asia and Indian Paitm, who consider Alibaba and Ant Financial as the main investors.

Sales cover obvious goods such as smartphones, televisions and other large consumer items, but also fashion, clothing, furniture, health products and more. Less expected items selling well include cleaning products, toilet paper and daily perishable products. There is also a high demand for cars.

In total, Alibaba recorded 1.48 billion transactions last year with a maximum of 325,000 orders per second. His Alipai payroll was sent 1.5 billion payment transactions with total orders 812 million. All the time, the dominant 90 percent of sales came from mobile devices – that's much more than the US, which had 37 percent on Black Friday and 33 percent on Ciber Monday.

Alibaba's sales of 11.11 sold a record $ 25 billion in 2017 (Image via Alibaba)

Alibaba is also pushing a futuristic offline retail network that has expanded into physical stores through its own Hema brand and partnerships with major retailers in China, such as the technology giant Suning and the Sun Art hypermarket operator.

It was renamed the "11.11 Global Shopping Festival" in 2015 to reflect Alibaba's efforts to increase sales outside its key market in China, and last year claimed that it has attracted over 60,000 international brands with customers in more than 225 countries.

In the beginning

November 11 was not always a synonym for the purchase of discounted online products. The date first appeared in China during the 1990s, when it was said to have been promoted as the day of the bachelor's celebration as the date represents four "individual". Later, he assumed a new meaning as a celebration day – it's a very popular date for marriages – and you find potential partners.

The e-commerce component arrived in 2009 when Executive Director Daniel Zhang used the promotion date of Tmall, Alibaba's virtual branding center, only 27 traders participate. Zhang, then in charge of Tmall Business, is now director of Alibaba and becomes president of the company, when Jack Ma-Alibaba has been for many years now – finally leaving the job next year.

Back in 2009, Alibaba made about $ 7 million on its inaugural Unique Day. Speaking to CNN this week, Zhang said that he "never expected" that the promotion would become such a huge phenomenon for Alibaba and for the wider e-commerce industry.

Alibaba CEO Daniel Zhang started the Purchasing Festival on one day in 2009, when he was in charge of the Tmall Business Company (Image via Vivek Prakash / Bloomberg via Getti Images)

Beiond Alibaba

As Singl & # 39; Dai celebrated at the national celebration, other e-commerce players such as JD.com and Pinduoduo also joined in to take advantage of a month of robust consumer spending. For example, JD.com saw 21.1 per cent of active user charges for its mobile application on November 11 last year, according to KuestMobile research.

Warm reception events also inspired festival festivals throughout the year. In 2010, JD.com, located behind Alibaba in terms of transaction volume, held its 12th Days Individual Days and started its own high school shopping event that falls on June 18th. Suning, a large Chinese merchant device, marked the 18th anniversary of the sale at a sales event.

However, none of the latimer companies failed to respond to Singles' Dai measures, and Alibaba continues to extend the borders of the world's largest trading event.

11.11 advertisement in New York (picture via Alibaba)

Not just the numbers

Day Single continues to grow bigger every year, but sales have slowed down. The annual growth in gross volume of goods slid slightly below 65 percent in 2014 to around 40 percent in 2017.

But Jack Ma always wanted to reduce the importance of these numbers. In 2013, he told the Chinese media on the eve of the night of November 11 not to go for sale. He repeated a similar message in the coming years.

Instead of the scale, Ma said he was looking for "steady" growth. This is because shopping malls require a comprehensive infrastructure for the power of functions such as logistics and payments.

Ma's words are in line with the company's current search for potential partners for supplying retail ecosystems. Last year, Alibaba poured $ 717 million into Huitongda, which manages the infrastructure for online sellers selling to rural customers – also participating in the Singles Day.

Similarly, Alibaba's financial venture, Ant Financial, has bankrupted many payment companies around the world to support the global reach of e-commerce, while the cloud computing division has been managing sales requirements worth $ 25 billion each year. Then there is a Cainiao NetWork logistics platform that helps handle 812 million orders placed in China last year.

The day-day also saw Alibaba adopting technology on a wide scale. Last year turned into AR – Maibelline enabled users to practically try the nail lip nails – Nike was among the brands that used gamification to attract customers, and the Alibaba Tmall service has adopted "virtual furnishing facilities" to sell clothes.

Offline sale

Chairman Alibaba Ma also projected what will become the norm for Dan Singl today. "We want all electronic commerce companies to be involved, and all brick and mortar centers will be part of it," he said.

In 2016, Ma introduced the term "new retail" to describe the future of flawless integration between online and offline retail. Last year he marked the dawn of offline push. This year, 200,00 brick and mortar shops applied for Day Singl to provide discounts to customers. For example, a user can get offline jobs when using the Alibaba Alipai e-wallet for payment at a mall. Alibaba also uses Alipay to issue cash prizes through the competition of red wallets.

Alibaba said last year that New Retail "showed promise" during 11.11, but refused to provide figures. This year, bearing in mind the physical improvement of Alibaba's operations, now it operates over 30 stores and includes face-to-face payment – an offline component will be more important than ever. In addition to Hema and InTime physical purchases, it also includes Ele.me – and Starbucks – and other platforms for providing local services.

Alibaba's 11.11 offer will now include Starbucks coffee, which can be ordered exclusively through its Ele.me delivery service thanks to a partnership with the American chain of coffee (Image via Alibaba)

Expectations for 2018

The prognosis for this year's Unique Day of 2018 is challenging because it is a matter of China's economic struggle and the U.S.-China trade war that saw billions in the tariff of goods. However, most sales of Alibaba remain in China, both 11.11 and the rest of the year, so, despite the advances in international growth, there will probably be no sense of the US government's action.

Nonetheless, some key factors:

  • Growth Slowdown: Quarterly revenue from Alibaba continues to grow healthier (40% plus), but the rate itself slows down, the same goes for 11.11
  • Odsutan: Alibaba makes an agreed offline e-commerce replenishment store with more offers for those who buy it personally
  • Services: His services and platform for delivery on demand – estimated at $ 30 billion – will play significant roles in China by offering 11.11 deals
  • Payments: Alipai expands 11.11 jobs by offering discounts to customers who pay online or offline
  • More global: The mutual influence of Alibaba continues to grow, and suppresses 11.11 in Southeast Asia, where it has established ties with vendors from China, and now has dedicated ventures in Russia and Pakistan / South Asia to work with

In any case, Alibaba makes a world spectacle during 11.11.

First up is a fun show that is held ahead of the festival, and then you can expect constant updates Alibaba's Twitter account during the 24-hour period. We will also follow the latest achievements for you here at Techcrunch.com, so be prepared for more.

This year's event 11.11. Is Alibaba the tenth and the last before the retirement of Jack (picture via VCG / Getti Images)

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