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Alibaba Revenue on Sale 11.11 has already set a new record
The focus of the economy on online commerce this year has been much more pronounced due to the pandemic, so Chinese Internet sites on the eve of the traditional sale on Singles Day are already summing up the preliminary results of this marketing campaign, hoping to receive record revenue. It is expected to double this year compared to last year.
Image source: Reuters
Expecting a natural influx of shoppers, Alibaba, which includes Taobao, Aliexpress, Tmall and others, began offering discounts this year on November 1, and by Wednesday noon the gross value of orders reached $ 56.42 billion, significantly exceeding last year’s result of $ 38 , 4 billion. The active phase of sales began today, so WPIC analysts expect that in conjunction with JD.com Chinese marketplace Alibaba may double its November sale revenue this year. Alibaba is already attracting 16x more orders in value than Amazon was able to bail out last month during its two-day Prime Day worldwide.
A record number of deals were concluded every second in the November sale – at its peak it reached 583 thousand. More than two million items were put up for sale on Alibaba for the first time, double the result of last year. Thirteen companies showed more than $ 150 million in revenue at this year’s sale, 340 companies and brands crossed the $ 15 million threshold. Experts expect that border closures this year will bring more luxury lovers to the internet, who usually purchase them when traveling abroad.
It is noteworthy that on the stock quotes of Alibaba and JD.com, these expectations cannot have a positive effect so far, since yesterday the securities of the former lost 8% of their value, and the securities of the latter fell by 5%. The reason for this dynamics in the share price was the draft law on competition in the field of electronic commerce submitted by the Chinese authorities. It provides for sanctions for non-competitive behavior and incorrect use of personal data of consumers to promote goods and services.
In the case of Alibaba, the fall in shares is exacerbated by the news background around the Ant Group, which was also founded by Jack Ma. Its listing with a public offering of shares was canceled at the last moment due to claims of regulators. The results of the November sale can to some extent soften the disappointment of the heads of both companies.