Alibaba Magic worked 572229000000.00 Indian Rupee sales ! Beats all world records Online sales ever. $9.3 Billion Sales Recorded In Alibabas 24-Hour Online Sale, Beating Target By 15% A most telling sign of China’s enormous consumption demand, $9.3 billion worth of orders were placed during the 24-hour “Singles Day” online shopping festival hosted by Alibaba on Tuesday. The transaction amount surpassed analysts’ forecast of $8.1 billion and dwarfed last year’s $5.8 billion, though a certain percentage of the orders is expected to be canceled or returned as the frenzy calms. A record number of 278 million orders were placed, nearly twice last year’s amount. 42.6% of the gross merchandise volume was generated on mobile devices , significantly higher than the 15% in 2013. Among the eager participants was the family of Jack Ma, chairman of Alibaba Group, though Ma said he himself was too busy to shop. Live data streaming of Alibabas Singles Day sale on November 11, 2014. This is the sixth year that Alibaba hosted the 24-hour sale, which always begins at midnight on November 11th and takes place mainly on its branded products retail site Tmall and Taobao market place. The amount of transaction recorded has grown exponentially, a result of the strength of China’s internal consumption demand and Alibaba’s ever-larger clout within China’s e-commerce space. “The key thing you are seeing is the unleashing of the consumption power of the chinese consumers,” said Joe Tsai, the executive vice chairman of Alibaba Group at a media briefing today. “China has been an economy that’s driven by exports and investments. We are really seeing the shift of the economy from one that focused on the state sector to consumption [by] everybody on the street.” Though Alibaba’s B2C commerce is the strongest in apparel, online shoppers took advantage of the sale’s steep discounts (often more than 50%) to make all kinds of purchases, some of the odd ones including: 3 million desk lamps, 200,000 laundry detergent of a particular brand, 60,000 automobile tires and 50,000 cars. An overwhelming bulk of the day’s transactions was processed on Aliyun, the cloud computing platform that Alibaba began to develop in 2009, the first year that the Singles Day sale was launched. A record number of 70,000 orders were processed per second on Aliyun , according to COO Daniel Zhang, and there was not a single case of buyers being allowed to place more orders than what was offered by the merchants. The shift to shopping on mobile devices proved to be a challenge for Alibaba’s technology platform and big data strategy. Mobile users visited the site at a higher frequency, Zhang pointed out, which not only generated additional traffic but also required the site to stay updated with better-targeted merchandises on a screen of limited size. “Limited by the screen size, shopping through mobile devices is a much more different experiences compared that on PC,” said Charlie Chen, a market analyst at IDC China. “Comprehensive and a large volume set of shopping information is on longer appropriate to deliver through the mobile platform.” Giving precisely customized merchandise recommendation would be a focus of Alibaba’s future efforts, Zhang noted in his concluding remarks for the Singles Day sale. Besides mobile growth, going global was also a notable theme at this year’s sale, with AliExpress and Tmall Global participating to allow customers abroad to make purchases from Chinese merchants and vice versa. “This year globalization is one point of experimentation this year,” said Alibaba Chairman Jack Ma to FORBES. “we would like to prepare for all-out internationalization three to five years down the road. The purpose is to allow small companies and consumers all over the world to be able to buy and sell online one day.” Transactions occurred in more than 200 countries and regions, with Hong Kong, Russia and the U.S. leading the rank in purchases . International sales figures were not immediately released, but a regional ranking seemed to suggest that Chinese consumers in the U.S. were among the most powerful consumer groups for Taobao Marketplace and Tmall. Whereas for AliExpress, the biggest foreign customer was clearly Russia, where the business’ Russian-language site ranked No.1 among all e-commerce sites. In fact last year, Singles Day was so popular that delivery paralyzed Russia’s logistics system, prompting an inquiry from the Russian government (the brutal winter was partly to blame). It will be a while before Singles Day to have any serious prospect of becoming a global phenomenon though. The overall international sales is likely very small compared to the total amount, Alibaba executives suggested. Despite the company’s rising fame abroad, largely thanks to its high-profile U.S. IPO, the company is cautious with replicating its business models abroad.
Posted on: Wed, 12 Nov 2014 03:49:11 +0000
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