The Alibaba, a Chinese E-commerce Marketplace had a sale for $5.87 billion on 11.11 Shopping Festival, which broke its one-day sale record by 80% compared to last year.
How does a Chinese e-bay make that?
The Alibaba Nov. 11 sale has a tradition that 27 merchants on Tmall site started offer discounts by 2009, in order to increase its sales during a slow selling period. The Alibaba is really sensitive that it sees the potential chance and catches it, now it has the absolute power on 11.11, the “Single Day”. According to the news from Bloomberg, it says that from the midnight on 11.11, Tmall bagan cutting its price up to 50% on the Chinese products as well as the international products, The Chairman of the Alibaba, Jack Ma, said that beside from the number of sales, he says the market power of China. 11.11 would not be an easy day for all the employees that work in the Alibaba, but it is also a chance to see how the company is gonna work under such big pressure.
Even thought that the Alibaba’s has just achieved a great score on Single’s Day, it still can’t ignore its competitors because they never stop neither, Tencent, China’s biggest Internet group, also started its e-commerce.
Reference:
WallStreetJournal: http://online.wsj.com/news/articles/SB10001424052702304644104579191590951567808
Bloomberg: http://www.bloomberg.com/news/2013-11-11/alibaba-breaks-sales-record-on-china-singles-day-amid-discounts.html
Tech Hub: http://www.ft.com/cms/s/0/473fae66-49db-11e3-9a21-00144feabdc0.html#axzz2kzRUJS3I