Alibaba smash record by a cool $10 billion
This year, the competition was far more fierce for Australian retailers than it was in 2016
by Inside Retail
November 2017; Inside Retail
Chinese consumers have smashed last year’s record of $23.3 billion (RMB 120.7 billion), spending over $33 billion (RMB 168.2 billion) on Alibaba’s ecommerce platforms during its 11.11 Global Shopping Festival over the weekend.
According to China’s largest ecommerce giant, Alibaba Group, sales made by the thousands of retailers on its platforms for the 24-hour period on Saturday amounted to ¥168.3 billion ($A33.3 billion), setting a new record for the company. It was 39 per cent more than sales clocked last year on Alibaba’s platforms of ¥120.7 billion.
“This year, the competition was far more fierce for Australian retailers than it was in 2016,” a spokesperson for cross-border platform Azoya told IRW.
“Major marketplaces such as JD.com, Amazon.cn, VIP, Tmall and Suning stored hot selling products from Australia including Swisse, Blackmores, A2, Bellamy, Aptamil, in advance in free trade zones or near-shore warehouses before the holiday sales, with prices very competitive and low.
“This made it much more difficult for Australian retailers to fight against, especially given the double eleven shoppers are extremely price sensitive.”
For Aussie retailers, on average above 70 percent of sales came from mobile, compared to 50 percent last year.
On 11.11, Azoya’s best selling Australian customer experienced sales 300 percent higher compared to average daily sales before the holiday, similar to figures from last year.
“Although this year, more international brands and retailers joined in the double eleven sales, the top selling categories were still clothes/shoes, cosmetics, 3C products. We still see the main competition among Chinese brands and retailers instead of overseas products. There are still bigger chances for retailers on the upcoming Black Friday.”