Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) will kick off this year’s “Singles Day” Mega shopping extravaganza early. This is a move expected to drive a surge in sales as the country’s COVID-19 pandemic easing drives a rebound in the economy.
Sales booming on Singles Day
The company will offer two shopping windows from November 1-3 and a 24 hour check out period on November 11. Alibaba has indicated that over 2 million new products will be introduced this year, which is twice the amount in 2019. The mega shopping festival is being watched to measure how consumer appetite has rebounded in china following signs of recovery in household spending. This is an opportunity for merchants and shoppers to leverage more opportunities than before as the event grows bigger each year.
Alibaba, which turned the informal Single’s Day shopping in China into a shopping extravaganza in 2009, has gone on to make its one of the largest online sales fest exceeding the S’s Cyber Monday. Last year the Chinese company $38.4 billion worthies of products on the day.
Already sales are booming, and the festival that began at midnight on October 31 has so far seen hundreds of orders from consumers. Customers flocked the Tmall and Taobao e-commerce platforms earlier and check out around 14 million discounted items. On Monday, the company said that around 100 brands hit $15 million sales on the platforms in 111.
Alibaba expects consumers to buy more luxury products
Sam Coopersmith of Shanghai-based consultancy Full Jet said that the longer the event lasts, the more money. However, independent e-commerce expert and CEO of Wanqing Consultancy, Lu Zhenwang, expects the growth of its gross merchandise value to be modest, around 10-20% compared to 2019. This is because the pandemic hurt the incomes of many consumers.
Last week Alibaba Chief Marketing Officer Chris Tung said they expect the pandemic to boost luxury goods purchase. This is because travel bans have prevented consumers from buying products overseas.