After listing on NYSE in Sep 2014, Alibaba has been the focus of the whole world. Affected by multiple factors, Alibaba hasn’t been performing as investors expected. Whether Double 11 2015, the biggest annual online sohpping day in China, will take a favorable turn influences investors’ confidence to some extent.
Alibaba revenues reached 57.1 billion yuan (US$8.98 billion) in 2014, which set a record high in history of online shopping. To prepare well for the coming shopping festival, Alibaba will be mainly targeting cross-border shopping, disclosed by Tmall online shopping program during Double 11.
More than 5,000 famous brands in 25 overseas countries and regions will participate with about 5,000 domestic companies and shops. Statistics from Alibaba show that over 50 million goods will offer discounts, and imported goods will hit the world’s lowest price and some may be tax free and/or offer free delivery.
The sales value in this Double 11 is expected to reach one hundred billion yuan, double of that in 2014.
To ease the pressure on payment for Double 11 this year, Ant Finance, the parent company of Alipay, has announced to invest 50 million yuan (US$7.86 million) to encourage the use of Huabei, a service similar to credit card. Consumers can buy goods and pay the next month. Alibaba wish to expand its credit market in China through this strategic investment.
Alibaba has made many efforts in online shopping this year. Tmall launched the duty-free shop project in China partnering with the largest duty-free groups in South Korea and Thailand in July, and has been approaching with American and European shops. Mota (magic dressing), a virtual fitting room, was also launched to provide users with virtual simulation sceneries as they shop on Tmall, and win consumers from Jingdong virtual fitting room.
Also read: China Online Shopping Insights in 2014