Tags Posts tagged with "Alibaba"

Alibaba

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The final total of sales which is more than the GDP of countries like Iceland, leaves other shopping days behind. Cyber Monday in the US covered 'only' $3.45 billion in online sales the previous year.

Alibaba, the famous Chinese e-commerce giant, said on Saturday, 11 November that, its Singles’ Day sales has hit $25.4 billion. Alibaba broke its own record from last year and has made this event, the world’s biggest shopping event to happen till date.

Once this day was a celebration for China’s lonely hearts, it has now become an annual 24-hour buying frenzy. Single’s day exceeds the combined sales for Black Friday and Cyber Monday which are similar very popular events in the United States.

By midnight, Saturday, Alibaba’s ticker of live sales registered 168.3 billion yuan of sales. This was up by 39% from 120.7 billion yuan that Alibaba registered last year.

This event had begun soon after an event in Shanghai in late night Friday. As soon as the midnight hit, a shower of pre-orders helped in driving a billion dollars of sales on Alibaba’s sales platforms in the first two minutes only and over $10 billion in just an hour.

This event each year gets shoppers around China who scout for bargains and load up their online shopping carts, all the while delivery men & robots brace themselves for an estimated 1.5 billion of parcels which are expected to be delivered over the next six days.

Joseph Tsai, Alibaba’s co-founder and vice chairman, said that, this is a big event for China and for the Chinese economy. He said that Singles’ Day shopping is more like a sport and very entertaining in its process.

Tsai said that rising disposable incomes of over 300 million middle-class Chinese consumers is helping in driving the company’s online sales and would continue to do so.

The final total of sales which is more than the GDP of countries like Iceland, leaves other shopping days behind. Cyber Monday in the US covered ‘only’ $3.45 billion in online sales the previous year.

Investors have closely watched the headline number, though according to some analysts it might have discrepancies. The U.S. Securities and Exchange Commission had launched a probe into Alibaba’s accounting practices the previous year, including into its Singles’ Day data. This investigation is still ongoing.

At Alibaba’s Friday night gala, the company hosted popular guests including the actress Nicole Kidman, famous singer Pharrell Williams and a few Chinese musicians and film stars such as Fan Bingbing and Zhang Ziyi.

This excitement around the shopping gala, however, masked the challenges that currently face China’s online retailers. The Chinese giants nowadays have to spend more to compete for online shoppers in a broader economy because of slower growth.

Alibaba has said that, it had turned over 100,000 physical shops around China into “smart stores” only for this year’s event. Goods checked out by people at the stores, then bought & paid for on Alibaba’s platforms, were also added in the sales total.

Online retailers are now being forced to make way offline as well as overseas to attract new shoppers, and the online retail market is now close to saturation. This raises questions about whether the current rapid growth could be sustained for a period of time.

 

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Ofo, a very popular Chinese bicycle sharing start-up has aimed on worldwide expansion, claiming that it brought over $700 million up in a fund raiser. Dai Wei, the CEO of Ofo said that they are trying to redesign their administration for better client experiences and aiming to accelerate their worldwide expansion methodology.

The fund raiser was driven by Alibaba, CITIC Private Equity and Hony Capital, with particular interest from DST Global and Didi Chuxing. This is the first time Alibaba has tossed its hat into China’s rapidly developing bicycle sharing industry, which has grown as an alternative to taxis, ride-hailing mobile applications and other transportation alternatives for some individuals taking short cross country excursions in China. Clients only need to scan the QR code printed on a bike to begin their ride, and with each bicycle conveying a GPS device they can be left anywhere when the ride is over.

Ofo is also looking at the worldwide Narrow Band Internet of Things (NB-IoT) tech for broad business utilization. This move will enable Chinese Telecom to provide Ofo with countrywide Internet access, while Huawei will furnish Ofo bicycles with NB-IoT chips and other media transmission devices such as GPS chips.

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China’s bicycle sharing industry has been fuelled with upstarts, for example, Ofo, working parallel to Beijing Mobike Technology and others aiming at enhancing urban mobility across the country and providing an ecological transport method.

Investors have realized that the potential this market holds is very great, to some measure due to the stress over various industries to reduce the carbon emissions. And they have emptied their sizable wallets full of cash as a fuel into this preheated industry.

A month ago, Mobike claimed to have brought up $600 million up in a fund raiser driven by web giant Tencent Holdings and joined by TPG, Sequoia and Hillhouse Capital, etc.

According to Ofo, it currently has more than 6.5 million bicycles in 150 cities. Before the year is up, Ofo said plan to supply convey 20 million bicycles to the bicycle sharing industry and to extend its services to be available to 200 cities in 20 nations around the globe.