Alibaba has unveiled details of its 2019 Global Shopping Festival, which the company predicts will be the largest ever, expecting a record one billion orders in 24 hours during Singles’ Day on 11 November. Alibaba continues to drive the reach and scale of the world’s largest shopping event, with more than 200,000 participating brands, and more than 500 million shoppers (up from 400 million last year), as Lazada, Daraz and AliExpress take the festival to consumers outside China.
As the event moves into its second decade, Alibaba looks to drive sales through “new consumption” and “new business”. Alibaba is leading store-based retailers when it comes to their digital ecosystems and adapting to the “new retail” model. The rising spending power in China’s lower-tier cities, coupled with the demand for new products and brands, offers substantial growth opportunities, which Alibaba is tapping into through new customer acquisition. To drive shopper engagement, Alibaba has also upgraded its Tmall Flagship Store in anticipation of the festival to enable brands to further engage with consumers via new features and tools.
With China’s digitally addressable population to expand from 598 million to 707 million during our five-year forecast period to 2024, brands must recognize the growth potential of China’s lower-tier consumers and leverage online shopping festivals to build brand recognition, visibility and loyalty with new customers with a positive long-term income outlook.