THE WHAT? Alibaba Group has announced that it generated RMB268.4 billion of gross merchandise volume (GMV) on this year’s Singles’ Day (November 11), up 26 percent compared to 2018’s festival.
THE DETAILS More than 200,000 brands participated in the event and 1 million new products were launched to mark the occasion. Lauder-owned MAC sold 60,000 units of a limited edition lipstick created expressly for the shopping festival.
Indeed, both L’Oréal and The Estee Lauder Companies were among the top brands, ranked by sales. The top five countries selling to China via cross-border platforms were Japan, the US, South Korea, Australia and Germany.
“Today we showed the world what the future of consumption looks like for brands and consumers,” said Fan Jiang, President of Taobao and Tmall. “We are meeting the growing demand of Chinese consumers and helping them upgrade their lifestyles, while introducing new users to our digital economy from across China and around the world.”
THE WHY? Growth was driven by more rural regions, new product development, livestreaming and green logistics, says Alibaba.
The e-commerce behemoth is leveraging its powerful consumer analytics and supply chain capabilities to create new products for lower-tier consumers, partnering with the likes of L’Oréal and P&G to cater to deliver quality goods at affordable process. Ten global brands, including Olay and Shiseido have committed to incubate more than 50 percent of their new products with Tmall this year.
“Lower-tier areas are the most important business strategy for us this year and a strategic direction for the company, because China’s less-developed markets have a lot of potential for growth when you consider their population, geography and shopping habits,” said Liu Bo, general manager of Taobao and Tmall Marketing, at a press conference on Monday afternoon.