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Alibaba Group will bring new products and names from all over the world to buyers across China for the big Singles Day shopping event on November 11. Perhaps one of the biggest names is Taylor Swift.
Alibaba BABA,
announced a partnership with Bravado, the merchandising and brand management division of Universal Music Group, which will launch products related to Taylor Swift’s latest album “Folklore” in China, two weeks ahead of other parties of the world.
Taylor Swift has performed for the event before and Katy Perry has performed this year.
NKE from Nike Inc.,
The Jordan brand is also launching the Air Jordan 6 WMNS “Singles Day” sneaker, according to reports.
Alibaba Singles Day, which was launched in 2009 and takes place annually on November 11, is one of the busiest online shopping days of the year and continues to grow in size and reach. . While some companies and buyers just get the hang of it, others in the fashion and retail world have seen the potential for some time.
Like AMZN from Amazon.com Inc.,
The Prime Day event, which took place last month, Singles Day has been extended over several days, with presale events starting October 21. Over 800 million consumers are expected to participate this year. The event also includes celebrity appearances, live broadcast events and more.
Lily: Amazon has already had its most profitable year in its history and just set a sales record in one quarter
For 2020, two million new products are expected to be launched, more than 250,000 brands will participate and more than 200 luxury brands, including newbies like Prada and Cartier, will sell products.
In 2019, the event’s gross cargo volume (GMV) reached $ 38.38 billion. Singles Day is expected to surpass that this year.
Black Friday and Cyber Monday hit $ 6 billion GMV last year.
“Singles Day will be a good indicator of the health of the Chinese market in general, which appears to be in the process of being torn apart at the moment,” said Andy Halliwell, senior director of retail at digital consultancy Publicis Sapient.
“As Alibaba grows internationally, Singles Day will look to compete with Western offers such as Amazon Prime Day and even Black Friday.”
GlobalData predicts e-commerce in China will grow 22.3% in 2020, with sales reaching $ 3.2 trillion by 2024.
As the global pandemic has pushed more shoppers into e-commerce, companies like Alibaba, Amazon, Walmart Inc. WMT,
and many more have stepped up their digital offerings and capabilities, accelerating the shift in e-commerce that began even before COVID-19.
“With increasing purchasing power and internet connected populations unmatched in more advanced developed markets, the successes of events such as Singles Day only serve to highlight attractive growth opportunities for investors who seek exposure to the burgeoning theme of the Internet and e-commerce, ”said Chelsea Rodstrom, research analyst specializing in Asian markets at Global X, the US ETF subsidiary of Mirae Asset.
As well: Alibaba Secures Whole Foods With New $ 3.6 Billion Investment In Chinese Supermarket Operator
The Global X MSCI China Consumer Discretionary ETF CHIQ,
is up more than 74% since the start of the year. The IBUY Amplify Online Retail ETF,
gained 84.6% over the period.
Alibaba recently announced a partnership and investment in luxury e-commerce site Farfetch Ltd. FTCH,
which will include Cie. Financière Richemont SA CFR,
Cartier’s parent company.
See: Farfetch shares soar after $ 1.15 billion investment in Alibaba, Richemont and Artemis
“The Chinese luxury market – which is expected to account for half of global luxury sales by 2025 – consists of hundreds of millions of young, digital-native consumers,” Daniel Zhang, chief executive of Alibaba, said in a statement. on the agreement.
Marc Jacobs, another iconic fashion name, has announced that he will be joining TMall in September with items ranging from handbags to shoes and clothing.
And: Alibaba shares post worst day since 2015 after Ant Group’s IPO suspended
Alibaba has also focused on bringing American small and medium-sized businesses to Chinese customers, hosting a competition that brought together nine winners, including America’s longest-serving apothecary, CO Bigelow, hair care brand Punky Color and brand of French Bull household items.
“Increasingly, American and European consumers are also participating in Singles Day as well as American brands looking to reach global shoppers,” said Kelvin Phua, head of payment networks at PPRO, a service provider of local payment.
According to Phua, some new shopping habits will persist even after the pandemic is over.
“During the lockdown, more than two-thirds of customers in some markets have tried a new product or service and of those, a quarter do not plan to revert to their old ways once the lockdown is over.”
Last week, Alibaba reported profits that beat expectations, with revenues up 30%.
Don’t miss: Alibaba profits exceed expectations but stocks continue to fall
“Longer term, we believe Alibaba is well positioned to capitalize on new growth opportunities in accelerated online penetration and post-COVID digitization, which should expand Alibaba’s total addressable market at the same time. the mainstream Internet economy and the industrial Internet economy, ”wrote Benchmark analysts. by Fawne Jiang.
Benchmark rate Alibaba shares buy with a price target of $ 355.
“COVID-19 has caused major structural changes, accelerating the change in online consumption habits, especially in lower tier cities and low penetration online segments, including food / grocery and cloud, with Alibaba poised to reap disproportionate financial benefits over time, ”Truist Securities wrote in a note.
Truist is pricing the purchase of Alibaba shares with a price target of $ 308.
Alibaba shares have gained 27.5% year-to-date while the benchmark S&P 500 SPX,
is up 9.7% over the period.
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