11.11 or Singles’ ‘Day’ 2018 officially launched last week, with about 500,000 items available for pre-order on Tmall. The world’s biggest shopping festival has long been a yardstick for Chinese consumer sentiment and spending, and this year it will be watched particularly closely. Sales over the 24-hour period will provide some indication of the impact that slowing GDP and the Trade War is having on consumption – the sector that Beijing hopes will keep the economy chugging along. This year will mark the 10th anniversary of 11.11 and will be Jack Ma’s last before he ‘retires’, so there are plenty of reasons Alibaba will be wanting to blow last year’s $25.3 billion in gross merchandise volume out of the water.
Each 11.11 festival is a display of Alibaba’s might, and a signal of its areas of focus for the year ahead. 2014 was all about getting consumers to shop on their mobiles, 2015 drove international products through cross border commerce, 2016 was about blending entertainment with shopping, and 2017 took New Retail and offline integration to a new level. This year will demonstrate the depth of Alibaba across China’s online and offline worlds.
Fancy some caffeine to keep you awake as you find the deals? Starbucks will be delivering discounted coffee through Alibaba’s Ele.me. Or how about a bite to eat, some beauty treatment or a spot of karaoke to provide a break from shopping on your smartphone? 150,000 of Alibaba’s Koubei merchant partners will be offing half price fare. This Singles’ Day will be the first time Alibaba has exhibited full might (almost) of Alibaba’s bricks and mortar investments.
The 11.11 promotions and festivities will be very present on Alibaba’s supermarket chain Hema, its hypermart operator RT-Mart, Intime malls and home improvements chain Easyhome which will all be showcasing New Retail. 200,000 mom-and-pop stores using Alibaba’s LST will provide online sales promotions and augmented reality-based red packets. Partners such as L’Oreal and Hasbro are coming to the party online and in stores.
At the heart of 11.11, Tmall will engage 180,000 Chinese and global brands. Tmall Global will provide 3,700 categories of imported goods from 75 countries and regions. And beyond China, Alibaba’s Lazada will aim to make Singles’ Day as much as an event in Singapore, Malaysia, Thailand, Indonesia, the Philippines and Vietnam, helped along by Google and Line joining together to promote the event. Altogether, Alibaba hopes to break the billion order mark on November 11. Given last year’s orders grew from 657 million to 812 million, and the many new dimensions in 2018, we think this could be conservative.
One of the interesting dynamics for Singles’ Day this year is Pinduoduo entering the mix. Singles’ Day was built around special deals, which no one does better than the Pin. It also has a stronghold in lower tier cities which have been more challenging to reach over previous Singles’ Days. There are reports of Tmall pressuring some brands to choose between its platform and Pinduoduo, so clearly Alibaba feels they will make an impact. One thing for sure is that it will make the day even more interesting.
For our readers who are participating in Singles’ Day, we wish you all the best in building awareness, launching new products or whatever else you are planning to achieve. We hope you are using it as a Trojan Horse to build more sustainable engagement with consumers.
In other news, China Skinny is proud to again be working with Austcham Shanghai and Westpac on the second annual Australian-China Business Sentiment Survey. The previous survey gave rich insights into the health, opportunities and challenges in the Australia-China economic relationship, provided a valuable benchmarking tool for all organisations working with China and strengthened the Chamber’s advocacy efforts to advance Australia-China business relations. Any readers representing Australian organisations connected to China please spend 10-15 minutes to complete the survey – we’ll all be better for it! Take the survey here. Go to Page 2 to see this week’s China news and highlights.