SHANGHAI (Reuters) – Chinese electronic trading giant Alibaba Group Holding Ltd broke the 2017 registration for its simple sales event on Sunday, surpassing sales of 168 billion yuan ($ 24,150 million) in less than sixteen hours
The day of singles, also called "Double 11", is the largest online sales event in the world, surpassing the United States Black Friday party.
The Chinese event was originally a celebration to celebrate its unmarried, counteracting Valentine's Day, but has since grown into an online shopping festival during a month that fills with a frenzy of sales open 24 hours on November 11.
A disproportionately high number of sales were recorded in the first minutes of the 24-hour cost balance when transactions for items that were placed on hold were recorded.
The company settled about 69 million yuan ($ 9.92 million) in the first hour of the Day of the singles on Sunday, until approximately the 21 percent of the beginning of last year of 57 million Yuan. Items that sell well included smart phones and other electronic products, but also clips such as milk powder and diapers.
While the company exceeded previous year's sales before 4 in the afternoon, the rate is slower than last year when the 2016 record broke around four hours before noon.
Analysts say that, despite strong continuing growth, sales are likely to be affected by economic winds and a new competition for competing sales events.
"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.
Alibaba started sales this year with a gala event featuring US singer Mariah Carey, a Japanese Beyonce imitator and a performance of Cirque du Soleil with a commercial theme.
It is expected that it will be the final November company's sales event with founder and chairman Jack Ma in command. The current CEO, Daniel Zhang, will take office next year, the company said in September.
While sales growth remains firm, Alibaba's stock fell 16 percent this year amid economic uncertainties linked to trade tensions between China and the United States.
Earlier this month, Alibaba reviewed the revenue forecast of the whole year, sending an infuriation to investors, as it said that sales of large ticket articles would be affected. To compensate, the company will take less revenues from its short-term platforms to retain brands and new buyers, he said.
This year, Alibaba said there were about 180,000 participating brands on Single Day, and starting at 8:00 p.m. Sunday's sales were about $ 27,000 million.
($ 1 = 6.9553 yuan)
Report by Cate Cadell; Edition by Nick Macfie and Alexandra Hudson