Upon hauling in more than $14 billion in revenue on Singles Day, the arrow is pointing up for Chinese e-Commerce marketplace Alibaba. Jack Ma, the company’s Chairman, has previously stated his desire to make Alibaba an international powerhouse through cross-border sales into the U.S. and UK.
Ma indicated that Alibaba intends to invest in U.S. high tech startups as part of the expansion effort, providing them with logistics, payments and cloud computing services.
In this week’s Q&A, the RTP team discusses the probability of Singles Day catching on in the U.S., and provides insight into what Alibaba can do to further take advantage of the international market.
Debbie Hauss, Editor-In-Chief: It’s hard to ignore the success of Singles Day, whether or not you support it personally. I expect to see significant expansion in the U.S., Europe and other countries, but I also expect to see some copycats trying their hand at a version of Singles Day. But it will take a lot of innovation and seed funding to compete. Alibaba is experimenting with location-based marketing and improving its cross-border trading capabilities. I could definitely see Singles Day catching on in the U.S. Alibaba or others may want to consider partnering with the online dating sites, Uber and AirBNB as a start.
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Alicia Fiorletta, Content Strategist:
Honestly, I’m surprised more retailers have not capitalized on the increased awareness of Singles’ Day. After all, thanks to the 24/7, global news network (and social media), shopping trends, technology trends and other cultural phenomena spread faster than ever. Executing a fun Singles’ Day campaign would be a great way for retailers to boost clicks and web site traffic, similar to key shopping days during the holiday season. I wouldn’t be shocked if we saw more of these use cases in the future. As for Alibaba’s expansion, it is clear that the executive team looks highly on innovation and tech startups, and I think that’s where the company will have an advantage. The companies that are in turn to market trends and try to embrace them in innovative ways are the ones that succeed.
Adam Blair, Executive Editor: If further proof were needed about the potential of the Chinese consumer market, the impressive growth of Singles Day ($14.3 billion in sales this year, up 54% from 2014) certainly provides it. U.S. brands and retailers would be wise to continue exploring ways to tap into this market, particularly given the Chinese government’s efforts to encourage consumer spending. As for a U.S. Singles Day, might I suggest something closer to Valentine’s Day? Not only would it be a pick-me-up for single people who feel shut out by the holiday, it would also be a good way for retailers (other than florists and candy shops) to boost sales during the winter doldrums.
Glenn Taylor, Associate Editor: Last year’s Singles Day was big, but this year’s was so massive it made headlines primarily due to its financial success. I definitely foresee more U.S. retailers taking part in the day come 2016. We already saw Nordstrom, Neiman Marcus, Bloomingdale’s and Ralph Lauren present exclusive deals on select items through Dealmoon, and I can see a) more jumping on this kind of bandwagon, or b) a select few larger name brands doing campaigns on their own.
With so many other major marketplaces to choose from, I don’t believe American audiences will ever strongly take to Alibaba as a go-to destination. However, I do think it is reasonable for them to become a minority player in U.S. commerce within five years. This would represent a much greater level of participation than they have here now, especially if they partner with more innovative fulfillment types.
