Alibaba's Singles Day breaks sales record with mobile shoppers

China e-commerce laws

The event is so successful and popular because Alibaba is so strongly vertically integrated. The company also sold 100,000 microwave ovens in sixty minutes.

Shares of Alibaba are down 0.31% to $185.84 on the first day of trading following the event.

The shopping day also succeeds in bringing businesses of all sizes to the forefront through technology integration.

That's up 40 percent from a year ago, and sets a new record for a single day of shopping sales anywhere in the world.

"Alibaba has invested substantially in developing technologies that empower Chinese small- and medium-size enterprises (SMEs) to participate in the festival", said Deborah Weinswig, the Managing Director at Fung, in a report. An astonishing 82 per cent of 11.11 sales were via mobile devices and 27 per cent of total sales were from worldwide brands or merchants.

The Shanghai-based principal at China Market Research Group, Ben Cavender, while speaking in relation to the matter said that in terms of scale it dwarfed all the events that had been going on out there.

Citigroup earlier predicted transactions would rise by more than 30 percent to 158 billion yuan this year. Eighteen hours later, at 6 pm (1000 GMT) on Saturday, Alibaba said the gross value of sales processed by its online payment system Alipay was nearing $21 billion - roughly equivalent to the annual economic output of Honduras or Afghanistan.

Chief Financial Officer Sidney Huang said the brands that left the platform were all major Chinese clothing brands, and that the company expected apparel growth to remain stagnant for the next two quarters before recovering.

This was the eighth edition of the online shopping spree which had about 140,000 brands including 60,000 global labels. As an example of USA success, Nike ranked number five on the list of top-selling brands of all categories on Tmall for GMV, while Apple was the best-selling brand in the mobile phone category.

EHS attributed the strong growth to the increasing popularity of the Singles' Day shopping event in Taiwan.

The total gross merchandise volume or the amount of sales transacted on Alibaba's platforms was almost four times the combined online sales of "Black Friday" and "Cyber Monday" in the US, Alibaba officials said.

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