Rumor: TMall to Drop Singles Day Sales Event in 2013
Ebrun, 11/15/12
Chinese e-commerce conglomerate Alibaba Group's B2C subsidiary TMall will reportedly not hold a Singles Day (November 11) sales event next year. A number of senior Taobao representatives are said to have informed merchant partners that next's year's Singles Day promotion had been canceled. Senior executives at Alibaba's third-party payment subsidiary Alipay said that enthusiasm for the holiday sale "is coming to an end."
TMall and Alipay set a new record for single-day transaction volume on November 11, with 217 merchants recording Alipay transactions on that day over RMB 10 mln, while three merchants saw single-day sales exceed RMB 100 mln and 14 recorded sales over RMB 50 mln.
Tmall's Singles Day sales revenues are generated solely through a revenue share on transaction fees, which president Daniel Zhang said were between 3-5%, totaling between RMB 600 mln and RMB 1 bln. According to an industry source, TMall has in past years invested at least RMB 500 mln in promoting the event, not including additional fees that are difficult to estimate.
Keywords: Daniel Zhang e-commerce Taobao Internet Alipay B2C third-party payment Alibaba Group transaction volume TMall Singles Day B2B marketing
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