Perhaps most importantly, these live commerce platforms push links to the product directly to the viewer as the KOL speaks. With live commerce, thousands of viewers can pitch questions to Key Opinion Leaders (KOL) who can answer in real time with the actual products on hand. Up until then, video reviews of products on video sharing sites were commonplace, but live streaming added a new dimension of interactivity that was simply not possible before. Alibaba identified that trend and launched Taobao live in 2016. "Live Commerce": Influencers take e-commerce by stormĪround 20, livestreaming services gained popularity in China as a form of interactive entertainment. Since 2019, several new trends, including live commerce and anti-monopoly regulations are reshaping Singles' Day even further. Other platforms that cannot be ignored are Douyin, Kuaishou and Xiaohongshu, which are video sharing and live-streaming platforms that have made inroads into live commerce as of late.īetween 20, the adoption of smartphones, rising 4G penetration and the integration of fintech tools like Alipay and Wechat Pay into daily life drastically changed the playing field for e-commerce in China. The main platforms to look at for this year's shopping frenzy include Taobao (Alibaba), Tmall (Alibaba), JD.com (Jingdong), and Pinduoduo. A disproportionately high amount of GMV is generated over this brief time period. In this chart, Singles' Day GMV covers a 10-day period between Nov 1 and Nov 11 and adds together GMV from both Taobao and Tmall. 4 However, Alibaba faces formidable competitors that are trying to pull the holiday in new directions with their own marketing campaigns. Its annual domestic E-commerce revenue grew nearly 62-fold from $1.2bn in 2009 to $52bn in 2020. The first Singles' Day shopping frenzy campaign by Alibaba was a success and it became an annual tradition.Īs the company that launched the inaugural Singles' Day shopping frenzy, Alibaba has benefitted greatly. In 2009, in the meeting rooms of Alibaba's Hangzhou headquarters, Alibaba strategists identified Singles' Day as an ideal time for a mass discount sales event. The campus tradition spread around the country and became a non-official holiday. Singles' Day can be traced back to 1993, beginning as a campus tradition at Nanjing University for single students feeling left out of Valentine's Day. Young consumers joke about their impulsive purchases by referring to themselves as "balance payers."Ĭhina gears up for the largest E-commerce event in world Alternative financing options are becoming increasingly common, such as consumers paying a deposit in advance and then paying the remaining balance after some time.While Alibaba launches its own campaign based on the idea of "planting grass," competitors are pushing forward with their own creative campaigns. "Planting grass" is a term that refers to when consumers promote goods they purchased on social media.The competitive landscape for Single's Day 2021 could be different as a result. Regulators talk of a "traffic light" for the expansion of capital, mainly referring to the anti-monopoly investigations that grabbed headlines throughout 2021.Delivery of packages to hundreds of millions of consumers requires a warlike effort and the right combination of "smart logistics" and "green logistics." Alibaba went from delivering 200mn packages for Singles' Day in 2013 to 1.3bn packages in 2019.On Oct 20, 2021, two influencers reportedly were able to generate $2.8bn through 12-hours of livestreaming on Taobao. Live commerce, in which influencers showcase products on livestreams, has risen meteorically in recent years. This piece examines the trends that are currently shaping Singles' Day in 2021. In 2020, Alibaba ( BABA ) and JD.com ( JD ) achieved a total of $115bn in gross merchandise value (GMV) sold. Every year online platforms like Taobao, Tmall, JD, Pinduoduo ( PDD ) and more compete to win over the consumers from China's burgeoning middle class. What started as a small event between a handful of college students at Nanjing University in the 1990s later evolved into a shopping holiday of epic proportions by the late 2000s. China's Single's Day is one of the most important business events in the world, often dwarfing the U.S.'s Black Friday.
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