China’s retail giant Alibaba Group Holding Ltd has recently broken its Singles’ Day sales record, hitting $38.4 billion in sales. This is more than Amazon.com Inc’s online store sales from the last quarter. These figures could be a showcase for Alibaba’s plans to sell $15 billion worth of shares to Hong Kong this month. This spike in revenue benefited the shareholders of Alibaba as its stock grew around 6% during this period.
Despite this, sales growth for the annual shopping event were the weakest since 2009, when the event was first started. This year, held back by China’s dwindling e-commerce industry, the sales growth eased down to 26%, as the country’s economic expansion heads towards a historic low.
Singles’ Day, an informal Chinese celebration, was turned into a shopping extravaganza by Alibaba in 2009. Since then it has been replicated locally (JD.com Inc, Pinduoduo Inc) and abroad (11thStreet, Qoo10, Shopee) and has overtaken U.S.’s Cyber Monday sales to became the world’s biggest online sales fest. The event name, known as 11/11 or Double Eleven, is a play on the date, November 11.
Alibaba stated the event’s gross merchandise volume (GMV) came in at 268.4 billion yuan, or $38.4 billion. This is a 26% increase from 2018, which in turn increased 27% from 2017. 84 brands, including L’oreal, Apple, and Uniqlo were reported to have made over 100 million yuan in sales within the first hour.https://www.thestar.com.my/business/business-news/2019/11/12/alibaba039s-singles039-day- sales-hit-record-us38b-growth-slows