China's Singles' Day Hits Record 213.5 Billion RMB in Sales
2018-11-30 11:33 Friday
China's Singles' Day, the world's largest shopping festival, occurs on November 11th. The concept is similar to Black Friday in the U.S., but is three times larger, due to China's massive consumer base. A wide range of brands will hold their biggest discounts of the year on e-commerce platforms Tmall, Taobao, Lazada in Southeast Asia, and Paytm in India, all connected to Internet giant Alibaba.
Following a decade of explosive growth, Singles' Day has become a windfall for online retailer. In 2018, over 180,000 brands and 200,000 offline smart stores from around the world participated in the shopping event, of which 237 brands had sales in excess of 100 million RMB.
The gross merchandise volume exceeded 1 billion RMB within the first 20 seconds, and 67.2 billion RMB within an hour, dwarfing Cyber Monday, Black Friday, and Thanksgiving Day sales in the United States.
The 24-hour Singles' Day shopping spree generated 213.5 billion RMB ($30.8 billion) in gross merchandise volume, an increase of 26.93% from last year, an increase of a factor of 4,270 times from the 50 million RMB figure in 2009, when Alibaba first introduced the promotion on its e-commerce platform Taobao. The top five countries selling to China by selling volume were Japan, the United States, South Korea, Australia, and Germany.
According to data compiled by Alibaba, more than 60 % of transactions were completed through fingerprint and facial recognition technology that has been integrated into Alipay, Alibaba's digital wallet. Due to the company's cutting-edge technology;no server crashes or bugs were reported, even at peak payment payment periods.
Alibaba's AI capabilities assisted sellers in product assortment and recommendations, sales forecasting, pricing strategy and inventory management. Through machine learning, AI functions proved capable of predicting product future sales during Single's Day, allowing for automatic price adjustments in real-time.
Jack Ma, executive chairman of Alibaba noted, Artificial intelligence, machine learning, and cloud computing were crucial to Alibaba's success on Singles Day, which helps to maintain the smooth and bugless operation of online shopping platforms.