Chinese e-commerce group Alibaba surpassed last year’s Singles Day sales record of $14.3 billion by 3:30 pm (Beijing time) today, after the company pulled out all the stops to ensure a successful shopping bonanza amid a slowing Chinese economy.
Gross merchandise value settled through its payment app Alipay reached 91.2 billion yuan ($13.3 billion) shortly after 3 pm, according to the company. But in dollar terms, it’s still short of 2015′s aggregate sales. Sales are expected to top $20 billion by day end, according to estimates by New York-based research firm Fung Global Retail & Technology.
Although there are signs that sales growth is slowing, this year, Alibaba invested more to market the event, which has been seen as a benchmark of company performance and Chinese consumer sentiments. The company launched a series of promotions and entertainment programs such as fashion shows and broadcasts of celebrity shopping trips in October, so consumers can pre-order products and pay later.
“This year’s promotion efforts are greater than last year’s,” said Wang Xiaofeng, an analyst at market research firm Forrester. “Alibaba is putting a lot of resources into the event. It stretches over 24 days instead of just 24 hours.”
On the eve of Singles’ Day, the company also hosted a star-studded countdown gala in the technology hub of Shenzhen. Hollywood actress Scarlett Johansson, sports celebrity David Beckham, fashion designer Victoria Beckham and basketball legend Kobe Bryant were among those that attended. Pop star Katy Perry had been named to be the event’s global ambassador, but she pulled out at the last minute, citing a family emergency, according to the company.
Alibaba is hoping that its celebrity line-up will also help to drum up attention from overseas customers. The group is taking Singles’ Day outside mainland China for the first time this year, allowing customers in Hong Kong and Taiwan to purchase discounted items through its shopping site Tmall using local currency and local payment methods.
More than 14,000 international brands are participating in the shopathon, the company said. So far, the best-selling brands include Apple, sportswear Nike, local smartphone company Meizu and Japanese apparel retailer Uniqlo, according to its Alizila company blog.
But the event has also been controversial. The U.S. Securities and Exchange Commission is looking into how Alibaba reports Singles’ Day sales figures since earlier this year, the company disclosed in its annual report filed in May. Alibaba said at the time that it was cooperating with authorities, and the SEC investigation isn’t seen as an indication that it violated federal securities laws.
Chinese authorities are also taking a closer look at Singles’ Day sales. The State Administration for Industry & Commerce warned earlier this week against fabricating sales figures and misleading advertising in a meeting with representatives from e-commerce companies including Amazon, Alibaba, JD.com and Suning, according to the government newspaper People’s Daily.