SHANGHAI (Reuters) – Alibaba Group (BABA.N) will kick off its annual 24-hour purchasing extravaganza on Monday with offers and deep reductions galore, and a efficiency by American popstar Taylor Swift to prime all of it, because it pushes to rake in one other document Singles’ Day gross sales.
FILE PHOTO: A emblem of Alibaba Group is seen on the World Web Convention (WIC) in Wuzhen, Zhejiang province, China, Oct. 20, 2019. REUTERS/Aly Tune/File Photograph
This yr’s Nov. 11 bash comes because the $486 billion Chinese language retail juggernaut navigates via a significant turning level, the resignation in September of its flamboyant co-founder Jack Ma as chairman, and appears to lift as much as $15 billion through a share sale in Hong Kong as early as this month.
Akin to Black Friday and Cyber Monday in america, Singles’ Day, a purchasing fest initially promoted by Alibaba Chairman and CEO Daniel Zhang in 2009, has since grown quickly to turn out to be the world’s greatest on-line gross sales occasion.
Alibaba noticed gross sales value $30 billion on its platforms on Singles’ Day final yr, dwarfing $7.9 billion U.S. on-line gross sales for Cyber Monday. But, the 27% gross sales progress was the bottom within the occasion’s 10-year historical past, spurring a seek for contemporary concepts.
“This yr would be the 11th 11.11 competition, with greater than 200,000 manufacturers collaborating, a million new merchandise on provide and over 500 million customers are anticipated to take part – about 100 million greater than final yr,” Alibaba mentioned in a press release.
Taylor Swift, whose newest album “Lover” has damaged information in China, will headline this yr’s opening gala alongside native celebrities like Jackson Yee. Swift additionally carried out at Prime Day live performance for rival Amazon.com (AMZN.O) earlier this yr.
Alibaba’s Singles’ Day celebrations have featured U.S. singer Mariah Carey and musician Pharrell Williams previously.
Livestreamers are additionally set to play a outstanding function in product promotions this yr, as Alibaba more and more turns to on-line video influencers to extend engagement on its app.
It has partnered with Kuaishou and Douyin, two fashionable Chinese language video apps, to assist it broadcast product promotions, and within the run-up to the present even roped in U.S. celeb entrepreneur Kim Kardashian, who launched a Tmall stream to advertise her KKW line of magnificence merchandise.
For a graphic on Alibaba’s Singles’ Day, see tmsnrt.rs/2Pl7TT6
Its heavy advertising and marketing marketing campaign underscores intensifying competitors with smaller rivals resembling Pinduoduo PDD.N which have outsmarted Alibaba in second- and third-tier cities with deep reductions and group-buying offers.
Alibaba has been attempting to increase its buyer base past its core first- and second-tier metropolis customers to much less developed areas to fight slowing retail gross sales progress, describing it as a key technique for the agency this yr.
Pinduoduo will likely be additionally holding its personal “Singles’ Day” occasions on the identical day.
The e-commerce upstart has signalled its intentions to interrupt Alibaba and rival JD.com’s (JD.O) stronghold on rich Chinese language customers, saying that half of the app’s customers now hail from first- and second-tier cities.
Alibaba additionally faces challenges of a regulatory crackdown and a slowing economic system, harm by U.S.-China commerce tensions.
Forward of the Nov. 11 occasion, China warned Alibaba and JD.com (JD.O) to cease practices that could possibly be deemed as monopolistic, state media reported earlier this month.
Reporting by Josh Horwitz; Modifying by Miyoung Kim and Himani Sarkar