In its annual event, the Global Shopping Festival, Alibaba has achieved remarkable results, generating $74.1 billion in sales, almost double the figure from the previous year. This event, also known as Singles’ Day or 11.11, has become a significant retail phenomenon in China and underscores the increasing significance of digital commerce, especially during the Covid-19 pandemic.
The success of this year’s festival is seen as a reflection of the economic recovery in the Chinese market. Participating brands utilized special launches and promotions to attract local consumers. Alibaba also extended the sales window, allowing for pre-sales from November 1 to 3, and offered dedicated support to assist brands in comprehending the platform and market dynamics. One of the foreign brands taking advantage of this support system was L’Oréal, among the 31,766 brands involved.
The luxury sector in China is projected to grow by 20% to 30% in 2020, and the Global Shopping Festival has the potential to further bolster this trend. Over 200 luxury brands participated through Alibaba’s Luxury Pavilion, including esteemed names like Balenciaga, Prada, Kenzo, Chloé, Cartier, Vacheron Constantin, and Piaget. According to Alibaba, approximately 70% of Luxury Pavilion customers made their first-ever luxury purchase during the festival.
Insights from the festival show that the jewelry segment experienced the most rapid growth, with sales reaching 2019 levels within the first 30 minutes of the event. Alibaba also incorporated new technologies to enhance interactivity, such as live streaming via Taobao’s Live tool, which is similar to China’s version of Twitter. Joseph Tsai, Founder and Executive Vice Chairman of Alibaba, emphasized that shopping is not just about browsing through product catalogs; it is also a form of sport and entertainment. Users were able to engage with AI-guided avatars and utilize a real-time translation system from Chinese to English, French, Spanish, and Russian.
Alibaba’s Global Shopping Festival continues to break records and exemplify the growing influence of digital commerce in China. This event’s success highlights the resilience of the Chinese market and the importance of innovative technologies in enriching the shopping experience. With the participation of luxury brands and the escalating adoption of digital platforms, the festival has become a vital driver of economic growth in the region.
Useful links:
1. Alibaba’s report on China’s Singles’ Day shopping event
2. Fortune’s article on Alibaba’s Singles’ Day record-breaking sales
