Once again Alibaba has broken a sales record on Bachelor’s Day. We remind that the holiday invented by marketers is held on November 11. The increase in revenue turned out to be the lowest during the sale.
The company has managed to sell goods totaling 30.8 billion US dollars. This is 21.5% more than a year ago. The record was beaten just a few minutes before the end of the day.
According to the BBC, in a minute and a half of conducting sales, the revenue amounted to $ 1 billion. The mark of $ 10 billion was overcome in an hour.
The record calculated in RMB was set earlier than in dollars, because the national currency became cheaper. In 24 hours, it was possible to get 213.5 billion yuan. In 2017, this amount was equal to 168 billion yuan.
If to compare with 2010, when Alibaba reported on its net profit after entering the stock exchange, the total sales volume during this holiday has increased almost 180 times. Experts believe that over the years the revenue hasn’t increased serious. It grew 21 times, while net profit has increased 54 times. This means that the record set for one sale, not very much affect the overall performance.
About 180 thousand brands took part in the promotion. A year earlier there were about 140 thousand brands.
Even though the records are beaten, skeptical analysts believe that the activity will continue to decline, because people begin to get used to such events. Another negative factor for Alibaba is the emergence of competitors and a slowdown in the economy. Also, the decline in the cost of the company’s shares due to the conflict with the United States negatively affected the sales.
Bachelor’s Day is not an ordinary holiday in China. It appeared in the 1990s as opposed to February 14. The date wasn’t chosen accidentally. The number 11.11 means bare branches, that is, single men and women.
The company has been conducting sales on the Bachelor’s Day for 9 years since 2009. The tradition was adopted by competitors, including JD.com, but the holiday is associated with Alibaba.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade