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| Source: Alizila. Zhang comments on the festival. Final GMV was RMB213.5 billion (US$30.8 billion). |
At midnight on November 11, Alizila reported that Alibaba’s 11.11 Global Shopping Festival - the company's 10th - had 2018 GMV* of US$30.8 billion, 27% higher than the 2017 record.
“Today we witnessed the strength and rise of China’s consumption economy and consumers’ continued pursuit to upgrade their everyday lifestyles,” said Daniel Zhang, CEO of Alibaba Group, in a statement at the end of the festival.
“Participation from the entire Alibaba ecosystem enabled our brand and merchant partners to engage with consumers like never before. Looking ahead, Alibaba will continue to lead the evolution towards the future digital economy and lifestyle.”
“I think you have to understand Alibaba and what Alibaba’s doing in the context of the long-term secular trend that’s developing in China, which is the rise of the Chinese middle class,” said Alibaba Executive Vice Chairman Joe Tsai, Alizila quoted. "That trend is not going to stop, trade war or no trade war.”
In the last hour of the 24-hour event, delivery orders handled by Alibaba-owned Cainiao Smart Logistics Network topped 1 billion for the first time - it had been 812 million last year.
Brand participation involved 180,000 labels. During the 2018 festival, over 40% of consumers bought from international brands. Two hundred and thirty-seven brands topped RMB100 million (US$14.4 million) in GMV this year, including Apple, Dyson, Kindle, Estée Lauder, L’Oréal, Nestle, Gap, Nike and Adidas.
The top countries selling to China were Japan, the US, South Korea, Australia and Germany, Alizila said.
Global Shopping Festival season began 20 days ahead of 11 November. Alibaba went all out to promote 11.11, with 29 Alibaba units participating:
- The recently-acquired Lazada marketplace also held its own single-day shopping festival in its six Southeast Asian markets.
- The 200,000 mom-and-pop stores powered by Alibaba’s Ling Shou Tong platform provided online sales promotions.
- Rural Taobao added coupons to its services in 800 counties across 29 Chinese provinces.
- Freshippo, Alibaba’s new retail supermarket chain that was formerly known as Hema, designated signature stores, each featuring a number of promotions.
- Ele.me provided delivery for select Starbucks stores across 11 Chinese cities.
- Some 150,000 Koubei merchant partners offered 50% off on catering, beauty salons, hair salons and karaoke bars.
“Today, around 200,000 smart stores joined November 11,” Alibaba Group CEO Daniel Zhang said. “As we always say, we truly believe the first thing for brick-and-mortar stores who want to go New Retail to do is to go digital … For all those retail partners, why they actively participated was not because it was a shopping day, but because it was a day to give people a unique experience.”
Besides promotions and sales held offline, Alibaba offered RMB1 billion worth of in-store rebate coupons. Members of Alibaba’s 88 VIP loyalty programme enjoyed 5% in additional discounts for 11.11.
Among the trends that Alibaba sees are:
- Middle-class consumers increasing their purchases of fast-moving consumer goods, such as beauty products
- The convergence of online and offline shoppers
- Businesses running on one inventory and stocking system for both online and offline retail
Explore:
Read the TechTrade Asia blog post on the records broken at Alibaba's 11.11 Global Shopping Festival
*GMV for the 11.11 Global Shopping Festival is the total value of orders settled through Alipay on Alibaba's China retail marketplaces, Lazada and AliExpress within a 24-hour period on November 11. It is reported on a real-time basis and includes shipping charges paid (where applicable).
All GMV and other figures presented are unaudited and subject to adjustments.
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