Alibaba achieves huge sales in just the first eight minutes of the event start, proving what it predicted had turned out to be true.
The Chinese e-commerce company, Alibaba, was optimistic about Singles Day event, an anti-Valentine's day celebrated by the country. The wait is finally over, as it made good sales and huge profit on this day last year. The company's prophecy has turned out to be true this year as well. It made sales worth $14.3 billion at this event, which is 91.2 billion Yuan.
Alibaba Group managed to achieve $1 billion worth of sales on its online platform in just the beginning of the event, precisely the first 8 minutes only, which was a better result in comparison to last year, where the online retail chain made $1 billion in 17 minutes. This event proved better than the last year not just in terms of sales, but even the speed of sales, which were faster and better.
Most sold items on November 11 were nutritional and baby products, Levi's jeans, Nike sneakers, and many other top selling items, the company informed the public. Jack Ma, the chairman of the online retail chain, did take a risk this year that proved to be beneficial by moving the company's headquarters to Beijing with the hope of achieving more international brands to its platform, and even adding a bit of Hollywood celebrities to it for more attention and fame.
According to Bloomberg, the chief at BNP Paribas SA, Chen Xingdong, said, "Chinese consumers have a lot of money in their hands; online retailers need to customize their products to serve these increasingly savvy urban consumers." The discounts and packages caused the hype of this event for the giant retailer, which began in 2009 and automatically, rivals followed due to the profit it was achieving on this day.
According to the company's predictions, it would have had the need to use 200 planes, 400000 cars and 1.7 million delivery workers to deliver products in all categories. 69% of the orders placed on the online shopping facility were through smartphones. It is also aiming to attract U.S. retailers to its home country.
Alibaba is opening its third office in USA, situated in New York, and already has other offices in San Francisco and Washington. Next year, it might introduce the Single's Day events packages and discounts in USA and UK.
The early hours of the event proved highly beneficial for the sales of the e-commerce giant. It has not yet disclosed an exact number of sales or profits. However, the evidence shows that it will not be disappointment to investors.
BABA stock closed at $79.81 on November 11.