Santa Barbara, CA – (StockNewsDesk) – 11/11/2014 — Alibaba is again in the news for all good reasons. For the past six years, the company hosts a 24-hour sale under the name of “Single Day” where prominent brands and products attract huge discounts. In just 24 hours, $9.3 billion worth of products got sold in only 24 hours. This figure is well above analysts’ expectation of $8.1 billion and the earlier year’s figure of $5.8 billion. In less than 18 minutes, the value of the Gross Merchandise Volume hit the $1 billion mark.
The number of orders that were placed, 278 million, also created a record. Number of orders placed increased nearly 200%. Maximum revenue came from sales of mobile phones. Of the 278 million orders placed, 42.6% were from mobile phones. Third largest phone maker in the world, Xiomi, reported a sale at least 1 million handsets, valued around 1.4 billion Yuan. This figure is nearly thrice when compared to last year.
The sale usually starts from November 11th from retail sites like Tmall and Taobao, which fall under Alibaba’s umbrella. More than 200 countries participated in this sale. Countries that led in terms of purchasing were USA, Hong Kong and Russia. The first “Single Day” had only 27 merchants’ participation; however, today’s massive sale saw participation by 27,000 vendors.
Alipay, Alibaba’s Crowned Jewel
Alipay, a part of the Ant Financial Services Group and one of Alibaba’s payment products have come into limelight. According to the agreement between Alibaba and Ant Financial, Alibaba can either share or buy a stake in Ant Financial up to 37.5%. Alipay is the bloodline of Alibaba. Since last decade, Alipay has been a payment gateway for transactions worth $788 billion till June 20, 2014.
Alibaba has focused on offering new programs that involve Alipay. The company has started promoting the service aggressively, especially after the Chinese government announced to introduce payment systems on an international platform. According to the Alibaba’s IPO Prospectus, if Ant Financial is to file an Initial Public Offer (IPO) in the future, the company would be valued around $25 billion. As of now, the company is focusing on listing itself in the Chinese market, where Alibaba has a very strong hold. Due to some unknown reason, Alibaba was unable to list itself in the Chinese market; however, Ant Financial hopes to get that opportunity.