Alibaba Reports Record Online Sales for Singles Day
The e-commerce industry made another record sale on Singles Day, one of the world’s largest online shopping event as Alibaba reported sales of around 91.22 billion yuan was spent in 24 hours. Alibaba which accounts for 8 percent of China’s total retail volume, stated that it total sales exceeded the 57 billion yuan in transactions last year. Online to offline retailing company Suning Commerce Group reported that their orders have tripled on Singles Day. According to the company internet shoppers ordered around 37,000 health products from the US in just 11 hours of the start of Singles Day. Then at 6 pm customers have ordered 220,000 Xiaomi smartphones and almost the same amount of mobile phone chargers.
Executive chairman of Alibaba Jack Ma said, that Singles Day is only a small part of the huge potential for domestic demand in China. Hundreds of businesses benefited from Singles Day such as companies that produce quality products. China has a middle class population of 300 million and is believed to grow up to 500 million in the next fifteen years bringing in huge demand for high quality products boosting economic growth. Retail sales in China increased 11 percent year on year in October the fastest gain for this year, which overcome a slow economy. And as China enters a phase of new normal, consumption is a important powerhouse that will drive growth through the roof.
The crazy online buying sent chills through the thousands of retail stores and malls in China as these stores faces pressure from the booming online sales sector which even forces several retail stores to close down or cancel their leases. Then by the end of June nine major retailers, Parkson, Marks and Spencer and Dalian Wanda closed around 25 stores in Shanghai, Guangzhou, Beijing and several other cities.
Alibaba’s closest competition and biggest e-commerce rival JD.com also outperformed its sales record from last year within 12 hours of online shopping sales are it received more than 20 million online orders.