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        China’s Single’s Day Breaks Sales Records Again

        2016-12-15 01:33:27ByLiamZanykMcLean
        China Report Asean 2016年11期

        By Liam Zanyk McLean

        China’s Single’s Day Breaks Sales Records Again

        By Liam Zanyk McLean

        Sales volume on Alibaba sales portals on Nov. 11, 2016 skyrocketed to US$17.8 billion.

        Nov. 11 is the largest shopping day in the world thanks to Chinese consumers who flock to e-commerce websites to purchase discounted goods of all kinds. The day, which is known as shuang shiyi (Double 11) in Chinese, also known as “Single’s Day”, was launched and trademarked by Chinese e-commerce giant Alibaba in 2011. Since then, it has grown into a machine of e-commerce.

        In its first year the event had only 27 participating retailers and resulted in just US$7 million in sales. The 2016 edition resulted in US$17.8 billion, the highest ever and an increase of 32 percent compared to 2015. Sales roared past 10 billion yuan (US$1.5 billion) within the first seven minutes of Nov. 11, according to Alibaba.

        Alibaba’s astute usage of ultramodern technology is what has allowed it to thrive. During this year’s Single’s Day event, 82 percent of orders were placed using smartphones. Total orders averaged 175,000 per second during the first hour of Nov. 11, according to Daniel Zhang, CEO of Alibaba Group.

        Jack Ma, founder and executive chairman of Alibaba Group, praised his company’s record breaking performance.

        “The consumption potential of 1.3 billion people in China is being uncovered,” Ma said, speaking at a press event. “We can see the huge potential of the Chinese market.”

        Just as in past years, Alibaba hosted

        a gala on the night of Nov. 10 leading into the early hours of Nov. 11 to kick off the shopping spree. Alibaba hired Hollywood producer David Hill to choreograph the event, which included appearances from sports stars Kobe Bryant and David Beckham and was held in Shenzhen, a major city in southern China’s Guangdong Province.

        In the final days leading up to the event, Hill said he was “shocked” to learn that there could be as many as 100 million viewers of the gala, which was streamed online on Youku, a Chinese online video service. Viewers were able to win clothing worn by the stars on stage and collect “red packets”, a traditional Chinese way of giving money, all from their smartphones.

        In addition to an increase in sales volume, Alibaba in 2016 adopted a number of high-end technologies to create a unique shopping experience. Taobao, Alibaba’s largest online shopping portal, launched a virtual reality (VR) online store that mimics the experience of shopping in a traditional store. Armed with VR goggles, users experienced shopping on one of Europe’s iconic shopping avenues. To purchase a product, users needed to only stare at a certain part of the item for a few seconds, after which it was automatically shipped to the consumer.

        Generational Divide

        Differences between Chinese citizens born after 1980 and their parents are part of what drives the Single’s Day shopping craze each year. Citizens born after 1980 account for 58 percent of China’s 700 million internet users. Their habits, tastes and hobbies are different from those of their parents. Their spending is on average 40 percent higher than people in older age categories.

        Convenience, too, plays a role. Zhang Wenxin, a 26-year-old course consultant who lives in Shenzhen, said that the speed with which Taobao delivers products is a key part of its popularity. Zhang attended university in the United States, and said she prefers using Taobao compared to Amazon, America’s largest online shopping site.

        “Taobao is cheaper, faster and more convenient,” Zhang said. “On Taobao, you can find pretty much anything.”

        Foreigners living in China have also enjoyed the huge discounts found on Taobao during Single’s Day. Ron Chowdhury, a 25-year-old teacher from India who lives in Beijing, said he purchased a television, two winter coats, a pair of boots and an external hard drive for a total of 1,700 yuan (US$250). When Chowdhury searched for the same combination of items a few weeks before Single’s Day, the total price was more than 3,000 yuan (US$437), he said.

        “Taobao is great but I wish they had an English version as well,”Chowdhury said. “The discounts during Single’s Day are amazing. It’s totally worth it to do a lot of shopping during that time, especially on the day itself when discounts are largest.”

        During this year’s Single’s Day event, 82 percent of orders were placed using smartphones. Total orders averaged 175,000 per second during the first hour of Nov. 11.

        E-commerce

        National Shopping Craze

        Single’s Day is not limited exclusively to Taobao. JD.com, one of Taobao’s main competitors in China’s mainland, also experiences strong sales figures in the days leading up to Nov. 11. JD.com has a reputation for selling products that are of higher quality than Taobao, though they are often pricier.

        Both JD.com and Alibaba are listed on stock exchanges in the United States — JD.com is listed on the Nasdaq stock exchange, while Alibaba is on the New York Stock Exchange. Alibaba’s September 2014 Initial Public Offering (IPO) on the New York Stock Exchange raised US$25 billion, making it the largest IPO in history.

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