Second Singles Day Flash Report by FBIC Global Retail Tech … Da… · · 2016-09-06... (...

1 DEBORAH WEINSWIG, EXECUTIVE DIRECTOR–HEAD OF GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2015 The Fung Group. All rights reserved.

11.11.2015 REPORT #2 Alibaba’s Sales Reach $11.5billion in 17 hours

Alibaba is in new record territory. The company matched its 2014 Singles’ Day record of $9.3 billion in sales in half the time.

• IDC estimates that gross market value (GMV) generated on Alibaba’s Singles’ Day will increase to ¥87 billion (US$13.7 billion).

• JD.com also broke its 2014 sales record of 14 million total orders in 12 hours. More than 70 percent of its sales thus far come via mobile platforms.

• With the second report on Singles Day, we bring you the highlights of how the event has unfolded so far.

2015 Singles’ Day Quick Facts

Workforce Deployment 1.7 million delivery men

Transportation Deployment 400,000 vehicles and 200 airplanes

Storage 5,000 warehouses

Number of Orders 278 million orders placed in 13 hours 32 minutes (beating Singles’ Day 2014)

Xiaomi

The leading smart device e-‐tailer sold $64.0 million (¥400 million yuan) in 88 minutes; last year the brand reached more than US$250 million sales on Singles’ Day.

Nielsen’s Survey 56% of consumers said they would spend more on Singles Day this year than in 2014.

Sources: Wired, eMarketer, Nielsen


We took a look at Alibaba’s sales performance seventeen hours after the launch of Singles’ Day 2015. As expected, sales were frantic in the first two hours of the event, rapidly reaching $5 billion (31.3 billion yaun). The rate of sales growth decelerated in the early hours of Wednesday and picked up again around 9am local time in China. Sales numbers maintained a strong momentum through the morning and showed increasing pace of growth with 10 hours to go. This gives us a reason to believe this year’s Singles’ Day can easily reach IDC’s projected $13.7billion by the end of the event.

Alibaba Singles’ Day Sales

Sources: Alog Technology logistics

Brand Discounts and Strategies

We also took a look at the promotional campaigns of international apparel brands, which are at the center of attention this year. The globalization of Singles’ Day is a key theme in 2015 as Alibaba announced that it expects over 5,000 international brands to participate in the event.

Browsing through the product offerings on the various platforms we found that TMall is focusing on introducing new retailers such as Macy’s, Costco and Sainsbury’s on its Tmall Global site, while JD.com is betting on a differentiation strategy that is built around premium brands, such as Burberry, Gucci and Bally.

On Tmall Global, we found a country-‐specific section, which includes products from countries such as the US, the UK, and Japan listed on separate pages. The products have a heavy emphasis on beauty, health and personal care.

10.0 16.0 20.0

31.3 36.2

41.7 50.0

60.0 63.3

71.9

0.0

20.0

40.0

60.0

80.0

12 AM 2 AM 4 AM 7 AM 9 AM 12 PM 2 PM 4 PM 7 PM

¥ Billion

Yua

n

2014 Record


On Tmall, we found more local brands than international brands. Even so, some international brands we found on the platform include Uniqlo, I.T Apparels, and French Connection, while the featured sportswear brands included Asics and Adidas.

On Aliexpress.com, Alibaba’s international platform, the front page showcases the 20 top brands for the platform. The page showcases pre-‐dominantly Chinese products, such as tablets from Xiaomi and sportswear from Li-‐ning. On the Russian version of the

Aliexpress platform, there are separate pages for Chinese brands and domestic Russian retailers. The prevalence of Chinese products on the international platforms highlights another theme for this year’s Singles’ Day – brining Chinese brands to the global consumer.

In contrast to Tmall, which seems to offer more mass market brands, JD.com dedicates prominent space to Bally, Gucci, and Salvatore Ferragamo. JD.com’s strategy is to focus up market, luring in the consumer looking for deals on luxury items. Considering that China has some of the youngest luxury shoppers in the world, this looks like a very robust model.

Platform Brand Discount

Tmall Uniqlo 50% off

Tmall b+ab from I.T Apparels from 50% off

Tmall Global Macy’s up to 50% off

Tmall Global Sainsbury’s 50% off

JD.com Gucci Price before discount not available

JD.com Bally Price before discount not available

JD.com Salvatore Ferragamo Price before discount not available Source: JD.com, Tmall, Tmall Global With a few hours left to the closing of the 2015 Singles’ Day it is clear that Alibaba is the biggest winner. The company has been able to create a massive wave of media attention and consumer interest. This has led to another record-‐breaking shopping extravaganza. Probably, the only question left unanswered is: how much more can people buy in 24 hours? The FBIC Global Retail & Technology team will continue to monitor the event across the globe to provide you with very answer.


Deborah Weinswig, CPA Executive Director—Head of Global Retail & Technology Fung Business Intelligence Centre New York: 917.655.6790 Hong Kong: 852.6119.1779 [email protected] Filippo Battaini [email protected]

Marie Driscoll, CFA [email protected]

John Harmon, CFA [email protected]

Aragorn Ho [email protected]

John Mercer [email protected]

Shoshana Pollack [email protected]

Kiril Popov [email protected]

Jing Wang [email protected]

Steven Winnick [email protected]

HONG KONG: 10th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 2470 LONDON: 242-‐246 Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0)20 7616 8988 NEW YORK: 1359 Broadway, 9th Floor New York, NY 10018 Tel: 646 839 7017 FBICGROUP.COM

Second Singles Day Flash Report by FBIC Global Retail Tech … Da… · · 2016-09-06... (...

Documents

Transcript of Second Singles Day Flash Report by FBIC Global Retail Tech … Da… · · 2016-09-06... (...