Sunday , January 24 2021

Alibaba's Simple Day surpasses 30,000 million dollars, but the growth rate plunges

SHANGHAI (Reuters) – Chinese electronic trading giant Alibaba Group Holding Ltd recorded a record 213,500 million yuan (30.70 million dollars) in Sunday sales during its frenzy of sale to the public during the 24th of singles & # 39; Day, but the annual growth of the event fell to the slowest, always rate.

Buyers in China and around the world took advantage of interesting items such as iPhones, furniture and milk powder as of the preview, with Alibaba recording approximately $ 10 million in sales in the first hour after midnight.

The day of the bachelors, also called "Double 11", is the largest online sales event in the world, surpassing sales of the combined Black Friday and Cyber ​​Monday shopping holiday.

The Chinese event was originally a celebration to celebrate the single, counteracting Valentine's Day, but has since grown into an online shopping festival for a month that goes with a 24-hour sale on November 11.

This year, the company exceeded last year's total sales record of 168 million yuan in just under sixteen hours.

Despite the record of income, the annual growth rate of sales fell from 39 percent to 27 percent, at the lower end of analyst estimates and the lowest rate in the 10-year history.

It comes as the company is dealing with a slimmer point of view in the midst of growing trade tensions than the US. UU. They took a little from the Chinese economy.

Earlier this month, it revised its sales prospects throughout the year by 4-6 percent, sending more chills through the company's stock price, which dropped by approximately 16 percent this year after doubling almost in 2017.

To compensate, the company will take less commission from its short-term platforms to retain brands and attract new buyers, he said.

The growth of online sales is also dwindling on the board in the country's eastern megaphones, including Shanghai and Beijing, and Alibaba said that about 75 percent of new users in the last quarter were in "less developed" areas.

Daniel Zhang, CEO of the Alibaba Group, delivered a speech during the 11.11 Singles Day global shopping festival of the Alibaba group in Shanghai, China, November 12, 2018. REUTERS / Aly Song

While small household appliances and cosmetics were strong on Sunday, sales of large ticket items, including large household appliances, slowed down the side of a real estate market slowdown, Alibaba's vice president Joe Tsai said.

"If people are not buying new homes, they are not buying equipment," he said.


Despite lighter growth, executives were optimistic on Sunday at a press event in Shanghai, attended by about 800 journalists who attended a live broadcast signal from sales.

"Today we reach 200 billion (yuan). But we have to change. We have to continue changing to reach 300 billion or 500 billion," said CEO Daniel Zhang, who is credited with being the original sales architect of Singles Day.

Alibaba started this year's sales with a gala event featuring US singer Mariah Carey, a Japanese Beyoncé imitator and a Cirque du Soleil show.

The sale of the company's final November with its founder and chairman, Jack Ma, is expected to be in charge, and Zhang will assume the position the president next year, the company said in September.

During the event this year, the company said it worked with 180,000 brands in more than 200 countries and, just before midnight on Sunday, sent more than one billion packages.

A disproportionately high number of sales were recorded in the first minutes of the 24-hour cost balance, when transactions occur for items that were put on hold.

The company installed approximately $ 1 billion in the first minute and twenty-five seconds after midnight.

Slideshow (4 images)

Analysts said sales continue to be cannibalized by competing events, including the festival "618" headed by the competitor of Alibaba Inc in June.

"With a growing number of promotional events per year, consumers no longer feel that Double 11 is the only opportunity to get good business," said Pedro Yip, partner of consultancy Oliver Wyman.

"That said, there are more consumers who still enjoy purchases in double 11 than those who do not," he said. ($ 1 = 6.9553 yuan)

Report by Cate Cadell; Edition by Nick Macfie and Alexandra Hudson

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