Alibaba Group Holding Ltd (NYSE:BABA) has admitted that it is readying for the possibility of delays in deliveries on November 11, Jack Ma, the company’s top executive, has revealed, according to Reuters.
According to the news organization, the revelation was made by the Alibaba Group Holding Ltd (NYSE:BABA) CEO as he was meeting with Canadian Prime Minister Stephen Harper.
Ma said that the Asia Pacific Economic Cooperation (APEC) summit in Beijing next week may affect deliveries being fulfilled by Alibaba Group Holding Ltd (NYSE:BABA) on November 11 when the electronic commerce giant will hold a shopping event called “Singles Day”.
Reuters said that due to restrictions on traffic put in place by the Chinese government on the day, the world’s largest internet retailer is bracing itself for the possibility of delivery delays.
Nonetheless, it looks like Ma is foreseeing strong product volume on the day as he is quoted saying, “I bet the number is going to be scary.” Ma said that he wishes merchandize volume for November 11 would not exceed 200 million.
The figure is a steep climb from the performance of Alibaba Group Holding Ltd (NYSE:BABA) in “Singles Day” last year when the company generated about $5.75 billion in volume for 150 million packages.
Alibaba Group Holding Ltd (NYSE:BABA) in the past five days saw a 16% increase in its share price as investors are feel good about the stock prior to the holiday seasons when sales usually spike. The company expects to generate $8.2 billion in merchandize volume on “Singles Day” alone.
Among the properties of Alibaba are Taobao and Tmall. The company some of the most valuable brands in China. Tmall’s estimated brand value is $5.7 billion. It sells goods in China, Macau, Hong Kong, and Taiwan. Taobao, another Alibaba brand, is estimated to be worth $22 billion just for its brand alone.