Alibaba’s Ultimate Strategic Marketing Move

RIGA, LATVIA – SEPTEMBER 8, 2016: online retailer homepage on smartphone.

Alibaba has created the ultimate strategic marketing move! Jack Ma has devised, staged, and executed his own “day”—a monopoly—the $25 billion Singles Day.

The ultimate marketing position is to create and gain a monopoly. Maybe, a long time ago, Kleenex held this type of position. Retailers try to do it with exclusive and/or private brand products. Loblaw did it, for a while, with their premium brand The Decadent Chocolate Chip Cookie. Now Alibaba has created a “day” which they own—the $25 billion Singles Day. That’s like creating and owning Christmas Day or Valentine’s Day! Everybody is in on Black Friday or Cyber Monday or Mother’s Day. Only Alibaba has assembled 15 million products from 140,000 international manufacturers—mind boggling! 39% increase in sales! Approximately 90% of the transactions were on mobile—at a rate of 256,000 transactions per second! Special app to connect selected convenience stores!

The Alibaba model is very different from Amazon. The former is obviously a marketing genius—not that Amazon is missing anything. But Alibaba relies on a vast network of local retailers for product sourcing and as distribution points—think 800 million order packages. Obviously, logistics is the other side of Alibaba’s coin.

Still not impressed? Black Friday and Cyber Monday did a combined $6.8 billion in 2016—Alibaba did US$25 billion—370% more!

J.C. Williams Group predicts a $100 billion day in the future when they go global.

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