Monday , June 14 2021

Individual Day: How Simple Idea Brings Alibaba to Over $ 25 Billion Sale

On Sunday (November 11th), Alibaba will mark the tenth anniversary of the Single Day, a one-day event that consumer mania surpasses every imagination and leaves behind the black Friday and Cyber ​​Monday.


The story of how this shopping festival, known as a double 11 due to its date, started in the dark and just $ 7 million in sales and ended last year to $ 25 billion, is also a story about the incredible growth of Jackie Jack's Jack 1999 era and the symbol Chinese growing consumer power.

However, how did Ma and Alibaba turn the "Free Day" into the playful glory of the phenomenon?

2009: a humble beginning

October 26, 2009 Jack Ma wrote a New York Times article entitled "The Little Is Beautiful", highlighting the potential of the Internet economy.

In this it describes the rise of a new "non-entrepreneur" category, adding that "all the internet will be their market and the platform will be their office or trade."

These were surprisingly happy words in the middle of the global economic downturn, when China, like other economies, was trying to revive the economy.

This article came just two weeks before Free Liberty Day, and his company hopes more traders will hug their new Taobao Mall (later changed Tmall's title to avoid confusion with Taobao).

In Alibaba, the company is committed to creating the Monastery Day for Director Daniel Zhangu, who will take over the presidency with his hand next year.

"Many ask me how we thought about that idea, and my honest answer is … survival," Zhang said last year at the event. "At that time Taobao Mall was a new job, and a few people knew her job."

In November, Zhang felt a business opportunity, fairly quiet for retailers, after falling off after a golden annual holiday in China, where most spent money on excursions and shortly before Christmas.

According to CEO of TMall World, Ilein Hou, a marketing member who thought of a free day, was inspired when a group member took Pocky Chocolate Sticks and someone said that this snack is well-known as a guang gun or "naked branch" in South Korea. In China, "naked branches" refer to people who remain free, a significant phenomenon due to miscalculation of sexes due to the 40-year-old child policy left by two years.

In fact, Pocky came from Japan, but it is similar to Pepper, which was donated to friends on 11/11 in Korea. China also celebrated that day, but in a lesser sense: in 1993, a group of students from Nanjing University decided to celebrate the fact that they are free 11/11, since number 1 is solitary and that date has four ladies and recalls four lonely branches. Alibaba team loved the simplicity of the date and … that was it!

Alibaba Headquarters

On this occasion, Alibaba promoted the slogan: "Even if you have no other, you can at least buy it as crazy." Emphasizing the freedom – often condemned for their status – and the fact that they have to celebrate themselves, Alibaba has created some kind of emotional party, wrote Zhang Hailan, a researcher at the University of East China in 2015.

Thought was simple – 50% of the offer and the free tradition of attracting consumers, Hugh says, but it was difficult to convince traders to believe in the idea or unconventional start of the market at midnight. Many merchants left at the last moment, leaving only 27 participants at the shopping festival, Hugh recalls. However, just a few hours after the opening of the event, Alibaba had to awaken merchants to seek more supplies because the goods were exhausted very soon.

Sales volume of Chinese companies amounted to 5 million yuan (or $ 720,000). That matches two months of sales in China.

2010: Over $ 100 Million

In 2010, Taobao Mall sold over 2,000 yuan ($ 3,000) every second and finally reached $ 135 million. China also received the first message that this celebration would be annual.

Many people were forced to wait a month or even months to pick up the items they ordered – something that usually took only one or two days, according to a statement by Chinese state media. "The demand phenomenon has started to surpass the offer … there have been cases in which merchant writers broke because there were too many prints. Faced with this unexpected scenario, many companies even transported managers from accounting and management e-commerce departments," he wrote People's Daily.

2012: Sales surpasses those in Cyber ​​Monday

Taobao Mall changed its name to Tmall when its sale for the first time surpassed Cyber ​​Monday (a celebration that had a name from the US trade fair in 2005 when it noticed that consumers did not have access to high-speed Internet at home on Monday after Thanksgiving saw an increase in online shopping).

2013: The time of trade

From this point, people could buy almost everything from Taobao and Tmalla – from a cushion to a diamond of 13.3 ct that cost $ 3.37 million – and of course they did. In just nine o'clock, they passed a record last year's sales, and after the event, they earned $ 5.8 billion.

2014: Virtual War, Without Enemies

Investors carefully followed the preparations for the big day. Zhang, then chief of staff of Alibaba, described the preparations as "war". "A virtual war, but no enemy," he said.

All the more important tools were the huge amount of information gathered from the events – people spending habits, time spent, websites.

For example, after analyzing the data, the company came to the conclusion that women who bought bigger bra sizes usually spend more.

This year, Alibaba described the day as a "world trade party" reflecting the outbreak of overseas markets with a growing number of Chinese tourists and earned $ 9.3 billion.

2015: Celebrities make their appearance

While China had a global drop in the market in 2015 due to China's political struggle for corruption and problematic stock market outcomes, it did not prevent Alibab from overtaking the previous record – or counting with known people was broadcast live on TV.

He introduced Daniel Craig and discovered together 11 winners who could buy Cadillac cars for just one yuan. Since then, it was a tradition – Alibaba called other big stars like Cobb Bryant, David Beckham and Nicole Kidman.

The 24-hour shopping marathon earned about $ 14.3 billion, more than a total of $ 13.5 billion from Black Friday and Cyber ​​Monday sales in the same year.

2016: High-tech and impressive cars

During commercial bail, Alibaba has sold more than 100,000 vehicles, which corresponds to the monthly sales of 1,000 Chinese delegations, according to company data.

Alibaba sold $ 17.3 billion in total.

2017: Record 25 Billion Dollars – A Great Interest From Medium Class

Liu Peng, General Manager of Tmall's International Business Sector, said the sector served more than half a billion Chinese middle class members, according to the most popular types of recent years.

Also, the new policy of two children played a significant role. For example, in 2017, the demand for "next strollers" increased by 83%. On the same platform, the number of users who bought the same baby item, but in two parts increased by 18%.

Alibaba closed a $ 25.3 billion shopping marathon – with 90 percent of those sales from mobile phones. Vitamins and diapers and baby formula were popular products from abroad. Russia was the largest source of oversea customers.

2018: Uncertainty due to commercial war

A persistent trade war with the United States, which could hamper market enthusiasm, overwhelms the expected event.

It is unclear how it will affect the sales of this year's numbers.

People are still excited about the events with articles about shopping strategies this month on social media are widespread and previews started last month.

Consumers who have glued to their phones or computers can order food and drinks from the Alibaba universe this year, a choice that was not possible before.

Alibaba has been fully prepared: at headquarters in Hangzhou, staff has already received more than 20,000 poplars for workers who will stay in the marathon shopping bureau.


Profit online
11. 11. 2013 23:49

Source link