Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

With discounts galore and Taylor Swift, Alibaba eyes another record Singles' Day

Stock MarketsNov 10, 2019 08:48AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A logo of Alibaba Group is seen at the World Internet Conference (WIC) in Wuzhen

By Josh Horwitz

SHANGHAI (Reuters) - Alibaba Group (N:BABA) will kick off its annual 24-hour shopping extravaganza on Monday with deals and deep discounts galore, and a performance by American popstar Taylor Swift to top it all, as it pushes to rake in another record Singles' Day sales.

This year's Nov. 11 bash comes as the $486 billion Chinese retail juggernaut navigates through a major turning point, the resignation in September of its flamboyant co-founder Jack Ma as chairman, and looks to raise up to $15 billion via a share sale in Hong Kong as early as this month.

Akin to Black Friday and Cyber Monday in the United States, Singles' Day, a shopping fest originally promoted by Alibaba Chairman and CEO Daniel Zhang in 2009, has since grown rapidly to become the world's biggest online sales event.

Alibaba saw sales worth $30 billion on its platforms on Singles' Day last year, dwarfing $7.9 billion U.S. online sales for Cyber Monday. Yet, the 27% sales growth was the lowest in the event's 10-year history, spurring a search for fresh ideas.

"This year will be the 11th 11.11 festival, with more than 200,000 brands participating, one million new products on offer and over 500 million users are expected to participate – about 100 million more than last year," Alibaba said in a statement.

Taylor Swift, whose latest album "Lover" has broken records in China, will headline this year's opening gala alongside local celebrities like Jackson Yee. Swift also performed at Prime Day concert for rival Amazon.com (O:AMZN) earlier this year.

Alibaba's Singles' Day celebrations have featured U.S. singer Mariah Carey and musician Pharrell Williams (NYSE:WMB) in the past.

Livestreamers are also set to play a prominent role in product promotions this year, as Alibaba increasingly turns to online video influencers to increase engagement on its app.

It has partnered with Kuaishou and Douyin, two popular Chinese video apps, to help it broadcast product promotions, and in the run-up to the show even roped in U.S. celebrity entrepreneur Kim Kardashian, who launched a Tmall stream to promote her KKW line of beauty products.

For a graphic on Alibaba's Singles' Day, see https://tmsnrt.rs/2Pl7TT6

INTENSE COMPETITION

Its heavy marketing campaign underscores intensifying competition with smaller rivals such as Pinduoduo (N:PDD) which have outsmarted Alibaba in second- and third-tier cities with deep discounts and group-buying deals.

Alibaba has been trying to expand its customer base beyond its core first- and second-tier city shoppers to less developed areas to combat slowing retail sales growth, describing it as a key strategy for the firm this year.

Pinduoduo will be also holding its own "Singles' Day" events on the same day.

The e-commerce upstart has signalled its intentions to break Alibaba and rival JD.com's (O:JD) stronghold on wealthy Chinese shoppers, saying that half of the app's users now hail from first- and second-tier cities.

Alibaba also faces challenges of a regulatory crackdown and a slowing economy, hurt by U.S.-China trade tensions.

Ahead of the Nov. 11 event, China warned Alibaba and JD.com (O:JD) to stop practices that could be deemed as monopolistic, state media reported earlier this month.

With discounts galore and Taylor Swift, Alibaba eyes another record Singles' Day
 

Related Articles

4 Warren Buffet Stocks to Own for the Rest of 2021
4 Warren Buffet Stocks to Own for the Rest of 2021 By StockNews - May 17, 2021

Warren Buffet has made his name by betting on fundamentally-sound “value” stocks with immense long-term growth potential. He advocates holding stocks for a prolonged...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email