China's E-commerce giant, Alibaba Group Holding Ltd., records its blockbuster Singles Day Sale on Nov. 11, surpassing its 2014's $9.3 billion 24-hour total. In just half time, $10 billion sales were already recorded and the company is on track to hit or exceed $13 billion.
According to Alibaba, it was just eight minutes past midnight when the sale officially started, around $1 billion was already spent by customers. Singles Day Sale, also dubbed as 'Double Eleven' is one of the biggest online shopping days in China and is held on Nov. 11 every year.
Analysts project that the sales would hit or surpass $13 billion despite the country's weakening economy in the past years. However, this trend is seen because consumers wait to spend on this sale each year to save more money.
Alibaba has since branded this shopping day sale starting on 2009 and it has grown tremendously over the years. This year, the company is expecting more than 40,000 merchants and 30,000 brands from 25 countries worldwide.
"The sales on Singles' Day show the power of the Internet and that China still has considerable consumption potential. Alibaba's success is a success of its platform, and it's hard to replicate," Zhu Qibing, a Beijing-based analyst at China Minzu Securities Co. said.
Alibaba accounts for more than 80 percent of China's internet sales market. In this year's sale, there is an estimated 120,000 orders placed every minute with 73 percent were made in its first hour via mobile phones.
"We're seeing more and more consumers shifting to mobile. That's why we've prepared special promotion sessions during peak commute hours, so people can shop on their phones," Alibaba chief Executive Daniel Zhang said.
Companies and brands foresee that this annual sale would increase sales. Hence, this event holds a rollercoaster of discounts and deals. With billions spent on shopping, this has become the world's biggest online shopping day of the year.
"There are currently 300 million middle class in China, and that number will rise to 500 million in 10 to 15 years. This will be an opportunity for every nation. China's consumption power will rise quickly and that will not only drive China's economy, but also the world's economy," Alibaba founder, Jack Ma, said.
