Confused by recent reports and analysis of China’s biggest omnichannel shopping festival Double 11’s performance and significance in current marketing budgets? You are not alone.
Once an unmissable fixture in the marketing diary of any consumer company serious about growing sales and customers in the world’s biggest e-commerce market, Singles Day or Double 11 is now regarded with much circumspect by brands and consumers alike.
Against a background of a slowing economy and softening of consumer demand, China’s e-commerce and social commerce platforms are accelerating competition for the purchases of Chinese consumers. But consumers are displaying caution and value consideration with many calling online for more “rational” spending. Plenty of them are eschewing purchases despite the heavy discounts – choosing instead to spend on activities and products leading to personal fulfillment.
In 2023, Singles’ Day has been divided into two or three phases by major platforms such as Tmall and JD.com. The first phase of pre-sales started in late October and finished on 3 November, during which time consumers placed orders and paid a deposit to lock in their purchases. Statistics revealed that from 31 October to 1 November, total sales reached RMB 196.3 billion (£22 billion). Tmall took 59% of the sales and JD.com 32%, with other platforms (e.g., Douyin, Pinduoduo, etc.) making 9% in total.
The consumer sector is in the throes of fierce competition, with e-commerce platforms engaging in price wars using strategies like price matching and lowest price guarantees. JD.com’s theme for Singles’ Day 2023, “Real Cheap”, underscores the commitment to value for money, especially in the realm of domestic products. However, many consumers argued that there were no ‘real cheap’ products or meaningful discounts that benefitted them, and they were sometimes confused or exhausted by the complicated rules across various platforms.
This year’s festival also highlights a significant shift towards conscious consumer behaviour, with an extraordinary focus on domestic products and brands with a purposeful mission. Interestingly, the allure of influencer-driven purchases has waned, with livestreams now influencing only 22% of consumers, down from 32% in 2021.
Chinese consumers have been increasingly inclined towards domestic brands, with a remarkable 66% intending to allocate more of their budgets to homegrown products. This shift is underpinned by a deep trust in the quality and safety standards of these brands, particularly among the younger generation.
The market demand for male products also increased by 10 November, overtaking pet products on the top sales lists for the first time. Electronic devices and outdoor activity equipment are the most sought-after among this group of consumers.
With the prevailing trend for so-called ‘quiet luxury’ lifestyle livestreaming on social commerce platforms such as Xiaohongshu, consumers are no longer as driven by low prices and coupons compared to Singles’ Day events from previous years. Personalisation, sustainability and brands with meaningful missions are all trends that are expected to shape future editions of Singles’ Day.
In addition, with multiple platforms providing discounts or coupons with certain conditions or a minimum spend, consumers on social media are openly discussing what products to buy to meet the conditions and even returning products they don’t need after the shopping festival is over, including medium to high priced products like Ralph Lauren jackets. Therefore, it is highly recommended that brands consider the post-festival return rate when evaluating their Singles’ Day performance.
