Singles Day on November 11 is an unofficial Chinese holiday. The holiday has surpassed Cyber Monday as the largest online shopping day of the year globally.
What Happened
Alibaba Group Holding Ltd. (BABA) owns the trademark to Singles Day and is the largest participating retailer. Yahoo Finance reports that Alibaba has added three additional days to the 2020 Singles Day holiday shopping season. The added dates are November 1, 2, and 3. Shoppers can also get an early look Saturday, October 31, with a countdown gala.
Why It’s Important
Last year, Alibaba Group reported Singles Day sales of $38.4 billion, which was a 26% year-over-year increase. Alibaba had over 1.3 billion orders in the 24-hour event in 2019. Rival JD.com (JD) holds a similar Singles Day event. JD.com reported Singles Day sales of $29.2 billion in 2019 spread out over 11 days.
An estimated 300 million new users are expected to participate in the shopping event in 2020. Alibaba segment Tmall Global is expected to add 2,600 new brands for the event including Prada (PRDSY), Cartier (CFRUY), and Chloe. Alibaba adding several days could break records. A survey from AlixPartners suggests spending will rise, with 39% of consumers saying they would spend more than in 2019.
BABA Price Action
Shares of Alibaba dropped 2.52% to $304.69 in Friday's session.
Comments
Log in or sign up to join the conversation.