Tag Archives: Taobao

China’s Singles Day Sales Tops $14.3B

Alibaba

It was another record-shattering shopping day in China on 11.11 when sales on Singles Day in China topped $14.3 billion.  What appears to be the Super Bowl of shopping, Singles Day holiday growth is credited to ecommerce giant Alibaba who had more than 10,000 international brands registered to participate this year. This is a huge increase; in 2009, there were only 27 merchants participating. While there were numerous global brands participating (i.e., Uniqlo, Adidas, Nike, Costco, Walmart, Amazon), the biggest winners were undoubtedly the Chinese brands.

New this year was a 3-1/2 hour television variety show that kept shoppers glued to their chairs and involved home shoppers even more deeply in the event. Seen as a combination of the Grammys, Oscars, game shows, home shopping network, and New Year’s Eve, sales reached $5.5 billion in the first 90 minutes, and surpassed $9.3 billion at the 12-hour mark.

Singles Day began decades ago as Bachelors Day, a Chinese holiday where single men shopped and partied to hold their blues at bay. In 2009, Alibaba put its might behind the day and turned it into a manufactured shopping holiday in China, going so far as to trademark the 11/11 name.

The next step – delivering 310 million packages!

Group Activities and Discussion Questions:

  1. Discuss the growing importance of Singles Day in China. Discuss the implications for U.S. companies.
  2. Show videos about Singles Day and Alibaba:

https://1111.tmall.com/?spm=875.7789098.2015001.1.bo0cFL&acm=lb-zebra-17931-417354.1003.4.517690&scm=1003.4.lb-zebra-17931-417354.OTHER_1_517690

https://youtu.be/QkSrD3A9QHA

https://youtu.be/3xxNlzUh56k

https://youtu.be/0IHptZJiBFk

  1. Also, show Alibaba, Taobao, and Tmall Web sites. (There are translators for the sites.)
  2. Discuss the growth of mobile devices for shopping. What are the implications for companies?
  3. Divide students into teams. Have each team select an ecommerce site and develop and outline for how the site can be effective on mobile devices.

Source: New York Times, Wall Street Journal, MarketWatch, CNBC. Brandchannel.com, Ad Age Daily, other news sources

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What is Alibaba?

Alibab

Alibaba may be largest consumer name in the world, but for consumers outside of China, few people know exactly what the company is and does. And, add the names of Tmall, Taobao, and AliExpress and non-Chinese consumers may be even more confused about the company. For those who are new to Alibaba, here is a quick list of key components and subsidiaries.

  • Alibaba Group: Founded by Jack Ma in 1989 as an ecommerce site, the company now includes multiple components including shopping, cloud computing, music, entertainment and more.
  • Alibaba.com: Large B2B platform used for the large manufacturing and production capabilities of China.
  • Taobao.com: Consumer-to-consumer shopping site offering more than 750 million products (similar to eBay). A majority of its revenue is from selling advertising to retailers hoping to be noticed by shoppers. Beware of counterfeit goods.
  • Tmall.com: Launched in 2008 as a business-to-consumer site, it has now grown to be a competitor of Taobao.com and became an independent e-commerce company in 2011. Tmall.com has brand ‘storefronts’ enabling companies to reach hundreds of millions of consumers (similar to Amazon). For example, Tesla automobiles are sold exclusively on Tmall.com.
  • 11main.com: This is Alibaba’s U.S.-based shopping platform, aiming to be a Tmall.com for America.
  • Alipay: An 11-year old financial powerhouse that processes $700 billion a year (half of China’s online payments) and has 300 million users. Alipay is global and is courting international users and partners such as Walmart.There is more to Alibaba than the above companies, and since it is now a public company, watch for it to further expansion in the coming years.
  • Group Activities and Discussion Questions:
  1. Ask students if they have heard of Alibaba, and what they might know about the company.
  2. Show a video about Alibaba: http://www.nytimes.com/video/business/international/100000002865514/what-is-alibaba.html
  3. Divide students into teams and have team research the company for 10 minutes.
  4. Have each team brief the class about key points learned.
  5. Next, have each team develop a marketing plan to using Alibaba to reach the Chinese market.

Source: Brandchannel.com, other news sources

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China’s Singles Day Sales Tops $9.3B

SinglesDay

It was a record shattering shopping day in China on 11.11 when sales on Singles Day topped $9.3 billion!  The shopping holiday growth is credited to ecommerce giant Alibaba who had more than 27,000 merchants registered to participate this year. This is a huge increase in only five years; in 2009, there were only 27 merchants participating. In a day that broke records, perhaps the most important statistic is that roughly 43% of all purchases were made on mobile devices.

While there were global brands participating (such as Uniqlo, Adidad, Costco, Walmart, and even Amazon) the biggest winners were undoubtedly the Chinese brands. Chinese smartphone company Xiami alone generated $163 million in sales before noon. (Compare this with Xiami’s sales last year at $89.9 million for the entire day.)

Singles Day began decades ago as Bachelors Day, a Chinese holiday where single men shopped and partied to hold their blues at bay. But in 2009, Alibaba put its might behind the day and turned it into a manufactured shopping holiday in China. Sales have increased more than 5,000% from 2009 to 2014. Can it go higher?

Group Activities and Discussion Questions:

  1. Discuss the growing importance of Singles Day in China. Discuss the implications for U.S. companies.
  2. Show videos about Singles Day and Alibaba:

http://nyti.ms/SxPHEm

http://bcove.me/cxqoqkqt

http://video.cnbc.com/gallery/?video=3000329317

http://video.cnbc.com/gallery/?video=3000329317

  1. Also, show Alibaba, Taobao, and Tmall Web sites. (There are translators for the sites.)
  2. Discuss the growth of mobile devices for shopping. What are the implications for companies?
  3. Divide students into teams. Have each team select an ecommerce site and develop and outline for how the site can be effective on mobile devices.

Source: New York Times, Wall Street Journal, MarketWatch, CNBC. Brandchannel.com, Ad Age Daily, other news sources

Leave a comment

Filed under Classroom Activities