How Alibaba turned a fake holiday into a $25 billion shopping extravaganza

It’s that time of year in the western world: turkeys, carols, and literally shopping ‘til you drop. Stampedes are a standard part of Christmas shopping fare, especially on that fateful weekend when prices are slashed.
Amazon released less than ideal Q3 earnings, and they’re hoping to make it up through holiday sales. But as your international share broker will tell you, things are done a little differently in China. They don’t just speculate. They make things happen. And Alibaba – Amazon’s Asian competitor – is the perfect example.

China has their own Google, even their own internet. So, Alibaba figured they should have their own holiday too. They dubbed it Single’s Day, a festive occasion to celebrate yourself by buying nice things … for yourself. In Chinese, the direct translation for Single’s Day is ‘bare sticks’. It refers to unmarried men who in China are sometimes described as ‘bare branches’ because they’re not adding any branches to the family tree.

A twist in the tale

From 1978 to 2016, China made it illegal for families to have more than one child, a policy that stayed in place until 2015 (Chinese nationals are now allowed to have two children.) Projections estimate that by 2020, China will have 30 million more men than women resulting in a large generation of bachelors. And because the families that kept their daughters placed a premium on them, a lot of these now educated women have good careers and less interest in marriage.

Since this unmarried demographic – the millennials of China – don’t use their money on childcare or family-related expenses, Alibaba persuaded them to spend on themselves. On Single’s Day in 2017 (November 11th) Alibaba made $25 billion in sales – all in that single day (pun intended). For comparison, 2017 global sales for (Black) Friday 24th November and (Cyber) Monday 27th November didn’t come close, and that’s both days combined.

A day for the boys

When it was first introduced, Single’s Day was for unwed (male) university students to hang out. China has a big gift-giving tradition, especially in the run-up to China National Day and the spring festival. This makes late September and January / February high-performing months for retailers. By deliberately sneaking Single’s Day into the low intermediary season, Alibaba built its own shopping boom.

Alibaba’s Daniel Zhang first sold the idea of Single’s Day shopping bonanzas in 2009, and it has gotten bigger every year. It’s this type of forward thinking (and its attendant scope for profit) that makes our Monex consultants recommend the brand to our investors. Alibaba trades on the New York Stock Exchange (NYSE: BABA)
, and you can purchase their stock with brokerage starting as low as US $9.99. And thanks to our on-the-ground presence and open access to Chinese markets, you can start
investing in offshore stocks in China with brokerage fees as low as US$20.

To learn more about investing in China, or to
open your account and start trading today, fill out our Monex contact form and we’ll get right back to you.

Read Also:

All about Alibaba

Move Over FANGs, The BATs Are Here

Why we all need to follow China’s plans for “opening up” their economy

Risk Disclaimer: The information above is of general nature only and does not take into account your objectives, financial situation or investment needs. Prior to you make an investment decision, please make sure you carefully read and fully understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other relevant documents that you can obtain from this website. Monex Securities Australia Pty Ltd (AFSL No. 363972; ABN 84 142 210 179) is the Financial services provider. Financial products trading carries risks and may not be suitable for all investors. You are strongly recommended to seek independent financial advice before making any investment decisions.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Act Fast - Promotion Ends In
Click Here To Get Started
Act Fast - Promotion Ends In
Click Here For More Info