Alibaba Is Likely to Set Singles Sales Day Record, Despite Economic Headwinds

But when the megasale kicks off at 12 am on Nov. 11, with bargain-basement on Burberry scarfs, New Balance shoes and even Buicks, many consumers will be dialing things back.

A new survey from consulting firm Oliver Wyman shows that 38% of Chinese millennials-a core group of shoppers for Alibaba-plan to spend less this year. Overall, the survey said, 30% of shoppers plan to spend less this year.

Zheng Miao, 48, of Chengdu said she typically spends the equivalent of hundreds of dollars on Singles Day every year, favoring clothes and household goods. This year, there is just one thing on her list: a comforter.

"I do not need," said Ms. Zheng, who owns a hot pot restaurant. "I've bought lots of stuff during 'Double Eleven' that I never used. They just sat in a pile at home unopened. "

E-Commerce Boom

Alibaba's gross merchandise volume-the value of business transacted on its site-has jumped every year on Singles Day.

Alibaba's sales on Singles Day

Despite such austere feelings, Alibaba faces annual pressure to top the year's record, said business consultant and author Duncan Clark.

"It's almost like Frankenstein," Mr. Clark said. Alibaba "did not fully anticipate what the whole thing would become."

Singles Day began as a tongue-in-cheek holiday that is celebrated China's young lonely hearts. Its Chinese name- "Single Sticks Holiday" -is derived from its date: Nov. 11, or 11-11.

Alibaba Chief Executive Daniel Zhang, who is credited with the idea of ​​turning it into a shopping opportunity, said Singles Day was originally conceived as a "make a small business grow quicker."

"Ahead of that first 11-11 for us, it was just about survival," he said in an interview, published by Alibaba.

A decade later, online shopping has become so integrated into everyday life that you need to buy online. At a recent event in Beijing, Mr. Zhang said the shopping event will have to evolve.

"In the next five or 10 years, there will be new forms of internet, there will be new ways of living," said Mr. Zhang. "This is our 'double eleven'-that we can learn from the past 10 years, but also face the future."

To make sure it's last year's sales record, Alibaba is trying out a few new tricks.

For the first time, Alibaba 's supermarket chain, Hema, and

            Yelp
            

      -like online platform Koubei will run Singles Day promotions. Its food-delivery service, Ele.me, will also include discounted

            Starbucks
            

      cold brew coffee for 1 yuan, or about 14 cents.

About 200,000 stores across China will have QR codes that double the amount deployed last year.

In another first, Lazada Group, an e-commerce subsidiary based in Singapore, will be aggressively pushing Singles Day with its first 11-11 shopping promotion in six Southeast Asian countries, including the Philippines and Malaysia.

Deals remain the heart of the promotion. 500,000 items were rolled out during a pre-sale period that kicked off on Oct. 20. Buick has already gotten orders for 7,000 cars and hotel chains like

            Hilton Worldwide Holdings
Inc.

and

            Marriott International
Inc.

have received advanced bookings for 350,000 nights, Alibaba said Thursday.

Other products available on its Tmall shopping platform: a Whirlpool refrigerator and washing machine set discounted by 40% to the equivalent of $ 3,160 and a hospital-style bed selling for a third of its regular price.

Beyond discounts, Singles Day is also a star-studded show. Alibaba is throwing a Saturday night gala in Shanghai that will be broadcast live on two television channels. Thousands of attendees will watch Cirque du Soleil perform and celebrities Australian model Miranda Kerr and singer Coco Lee will be in attendance.

– Xiao Xiao in Beijing contributed to this article.

Write to Shan Li at [email protected]