The logo of Alibaba Group is seen during Alibaba Group’s 11.11 Singles Day a global shopping festival, at the registered office of the company, in Hangzhou, Zhejiang province, China, on November 10, 2019. REUTERS/Aly Song
SHANGHAI (Reuters) – Chinese e-commerce giant Alibaba Group Holding Inc. said Monday that revenue in its annual Singles’ Day shopping blitz and hit 91.2 billion yuan ($13 billion) in the first hour, which is an increase of 32% compared to the previous year, the front end of the pull out of 69 billion yuan.
Closely related to the Black Friday and Cyber Monday in the United States, Singles’ Day has been promoted as an online shopping fest by Alibaba’s Chairman and Chief Executive, Daniel ” Zhang, since 2009, is growing rapidly to become the world’s biggest online sales event.
Also known as the “Double-Eleven”, the festival’s name is derived from the calendar date of 11/11, with four of those point to the single from the album. Alibaba saw its revenue up to the value of $30 billion, and the platforms on Singles Day last year, dwarfing $7.9 billion, U.S. online sales for Cyber Monday. However, the 27% increase in sales was the lowest in the case of a 10-year-old history, which is a search for fresh ideas.
Of the $486 billion, the Chinese retail juggernaut kicked off this year’s 24-hour-long festival, with performances by American pop star Taylor Swift and local celebrities such as the Jackson and Yee.
This is the first time that Alibaba’s Singles’ Day is not a flamboyant co-founder Jack Ma at the helm after he resigned in September as chairman and ceo.
It also comes at a critical time for the company, which is looking to raise up to $15 billion in a share sale in Hong Kong this month.
Alibaba continues to dominate the online-shopping industry, but it is not without competition.
In addition to long-time rival JD.com it is now in the face of competition from upstart Pinduoduo, which has increased in popularity and, in 2017, is aimed at consumers in China’s lower-tier cities.
Reporting by Josh Horwitz; Editing by Himani sarkar and Jan Harvey