Singles Day, the biggest online shopping day of the year, is upon us. And while pretty much all of China’s ecommerce companies are going all-out for the occasion, this year lots of eyes are on Alibaba, both because it owns the biggest share of China’s ecommerce market and because this marks its first real test since its IPO in September.
Want to know how the company is doing? Here are four things to keep an eye on today:
(Note: this post is not a translation, but it was heavily inspired by this Chinese-language post by Mao Lin on Sina Tech, which raises four of the same basic points.)
1. Can Alibaba break US$9 billion?
Last year, Singles Day spenders spent nearly US$6 billion across Alibaba’s marketplaces, Taobao and Tmall. That was nearly double what the sale took in the previous year, and this year Alibaba will be looking for similarly massive growth. Doubling its sales again seems unlikely – though certainly not impossible – but the company will definitely want to increase them significantly. If Alibaba can reach the area of US$9 billion in sales today, it will be read as a success. A lower number, while still impressive, would probably be a little bit disappointing.
2. Can mobile sales break 50%?
Mobile ecommerce has been growing like wildfire in China, and Alibaba has put a lot of time and money into streamlining the mobile experience for its customers. And given that China has way more mobile web users than it does broadband PC users, a majority of people buying via their mobile phones this Singles Day would be a great sign for Alibaba and for the future growth of the market in general.
Mobile sales accounted for about 36 percent of Alibaba’s overall sales in Q2 of this year, so breaking 50 percent this Singles Day could be a stretch. Then again, today is a work day, and many Chinese offices have blocks or restrictions about online shopping on work computers, so if employees want to take advantage of today’s deals, they may be tempted to do so on their phones.
3. Will this year’s Singles Day go international?
Alibaba has also put a lot of effort into increasing its international offerings this year. Through programs like Tmall Global, the company has increased the number and profile of international brand names on its ecommerce platforms, and today’s results should reflect how well that’s panned out. For example, Tesla automobiles go on sale on Tmall for the first time today. How well Tesla, and other new global brands listed on Alibaba’s platforms, do in sales could have a big impact on the final sales tally and on Alibaba’s future strategies.
4. Will delivery get faster?
It’s probably something of an inevitability: when millions upon millions of people are ordering stuff online during the same 24-hour period, distribution is likely to be a problem. And in the past, it has been. Alibaba and competitor JD have been fighting for years over delivery speeds, but this year Alibaba has put a great deal of effort into improving the logistical side of its business through projects like its new Cainiao subsidiary and its new partnership with Gooday distribution. It looks promising, but the proof will be in the pudding – or more accurately, the proof will be in how long it actually takes the pudding to get from an Alibaba warehouse to customers’ homes after they order today.
(Source: Sina Tech)
This post After Alibaba’s IPO, 4 things to watch for this Singles Day appeared first on Tech in Asia.
After Alibaba’s IPO, 4 things to watch for this Singles Day
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