It’s the time of the year again, no, I am not referring to Christmas or Halloween. It’s Singles Day or 11.11 Day, founded in China 1993 and popularise by Alibaba. The first Singles Day celebrated by Alibaba is on 2009, this year’s celebration marks the 10th year.
How much did consumer spend on 2018 Singles Day?
Total delivery order received by major e-commerce was 1.35 billion as reported by China Economic Net. A combined Gross Merchandise Value of top 2 China e-commerce giants, Alibaba and JD.com, is USD 53.8 billion. USD 30.8 from Alibaba and USD 23 billion from JD.com.
Lazada, a Southeast Asia e-commerce company owned by Alibaba, reported a total of 1.2 million orders within the first hour of Singles Day and high participation rate in Lazada 11.11 Super Show event with over 5 million viewers from Malaysia and Thailand.
What can we learn from consumer trend on 2018 Singles Day?
There is a notable trend of Chinese consumer preferring quality over price. JD.com CMO Lei Xu said, “…[there are] growing numbers of consumers who are willing to pay more for branded and imported goods.”
ParcelHero’s Head of Consumer Research, David Jinks MILT, says the move upmarket amongst Chinese consumers was noticeable: “For the first time Apple’s iPhones were the top-selling mobiles on Singles’ Day, beating bargain Chinese rivals such as Huawei and Xiaomi.”
The Chinese are buying international products. Alibaba reported, over 40% of consumers bought from international brands with 237 brands topped RMB100 million (USD 14.42 million) in GMV.
High demand of goods from countries like Japan, the US, South Korea, Australia and Germany.
Popular brands are leading international brands like Apple, Dyson, Kindle, Estée Lauder, L’Oréal, Nestle, Gap, Nike and Adidas. Other popular brands from UK are Burberry woollen scarf and Jaguar-Land Rover.
Social interaction and engagement is important. As reported by Lazada, 50 millions vouchers were through popular games, 5 millions viewers and 50 thousand fans joined the Lazada 11.11 Super Show in Malaysia and Thailand.
For example, Alibaba “See Now, Buy Now” event allows live audience and viewers to buy products they see on the fashion catwalk in real time using their smartphones. To create even more interactivity between brands and participants, viewers were able to vote for their favorite look with a new feature called “Play Now”.
Commentary by Maverick Chung