The Chronicles of Alibaba Singles Day – Part 2
This week we follow on from last week’s chronicles on Alibaba Singles Day Part 1:
Part 2 Chronicles on Alibaba Singles Day will give us more glimpses about brand success stories, consumer psychology (that contributes to the event’s success), importance of content (entertainment, fun and games), key considerations (guanxi) and key success factor (authenticity)
Here goes…
Thinking Fast, Planning Ahead – Pinko (An Italian Fashion Brand)
Pinko’s first involvement with 11.11 shopping festival was in 2018 and 2020 edition was a complete contrast – from discounting to communication of the brand. Despite selling only at full price, sales doubled in 2020 from 2019 and among the top-5 selling items were 3 items specifically designed for the 11.11 festival
A ‘see now, buy now’ feature of the online event allowed users to snap up the catwalk items with just a few clicks. Pinko’s show achieved more than 2.5 million views, the brand’s store had around 30,000 visitors, and it generated RMB 1 million in sales via ‘see now, buy now’. Livestreaming (via physical store in Shanghai and online via Tmall) is a big part of their communications strategy, but not necessarily their biggest driver of volume sales
Home is really where the Heart Is – Christofle (A French Luxury Homeware Brand)
They expect their China business contribution to grow from 10% to 25% by 2025. During 11.11 festival, Christofle launched its Royal Jack range of pet accessories and highlighted the last available pieces from its collection created with singer Pharrell Williams and Chef Jean Imbert. There were gifts with purchases and lucky draws, but crucially and very deliberately, no discounts
On 11.11 itself, it achieved 5 times its average daily sales and the boost lasted through the month of November. The benefit of Singles Day sales go beyond short-term lift is sales turnover – brands also attract potential new customers – who can be retargeted after the event is over
Fresh Thinking on Product Development – Johnson & Johnson Listerine
In 2017, J&J created a sensation by pairing 2 pieces of market understanding to great effect – that mouthwash was becoming increasingly popular in China and women were interested in flavours that went beyond the usual minty selection, with floral or fruity notes.
In time for 11.11 festival, J&J launched 2 new flavours of Listerine – Rosemary Bloom and Vanilla Breeze. The product development time for this was crunched to less than 5 months, from the usual 12-18 months cycle, and the consumer response was resounding – More than 10000 bottles were purchased by consumers in the first 5 minutes of the sale
Snacking Market Test by Mondelez
In 2019, Mondelez built on a consumer insight that biscuit consumers in China were also buyers of dried fruits and nuts. They developed a mini-Oreo version with dried fruits and nuts and were able to test the market at scale by launching at 11.11 – where 20000 packs were sold – following digital focus groups and virtual concept testing
Singles Day 2020 – The Potential for Brands
International brands were in high demand, with US brands alone clocking in $5.39 billion in sales during the 11.11 period. In all, over 26000 brands from 84 countries took part – offering 1.2 million new products from overseas to Chinese consumers via Tmall
Importance of Content (Entertainment, Fun and Games)
The entertainment aspect of shopping is magnified on festival days – like Singles Day – where brands must not only offer the best products at the best prices in order to engage consumers – but also offer the best content
Augmented Reality (AR)
Alibaba’s Tmall now allows brands to personalize their flagship stores to include more interactive features using AR. Shoppers can now virtually try on their make up or clothing to get a better sense of what suits them before they commit to buying. This effect on engagement is proving to be powerful – Estee Lauder, for instance, is seeing the dwell time on their Tmall product pages rising from an average of 30 seconds to 70 seconds following the addition of AR functionality
3D Shopping & Virtual Reality (VR)
Ahead of the festival, Tmall has launched a 3D shopping feature – an immersive and interactive shopping experience that replicates many of the elements on in-store shopping. Using just their mobiles, consumers can browse through 3D stores of more than 100 brands. Among those brands is IKEA which has unveiled an online version of one of its Shanghai stores, complete with furniture-filled showrooms and the retailer’s signature walk-through design
Gamification
Bringing aspects of online gaming to the shopping, browsing and discovery experience is helping brands shine, attracting new customers and deepening engagement with existing ones. In 2017, Alibaba launched the game ‘Catch the Cat’ – an AR game in the style of Pokémon Go – to coincide with the Singles Day sale. It allowed consumers to earn “red packets” of money to spend during the festival by tapping when they found the virtual cat in real-life situations. Many brands took part in the promotion, which helped drive footfalls to physical stores and restaurants by shoppers hunting down the elusive feline
Reliance on Guanxi (Connections) and KOLs
The word ‘guanxi’ or ‘connections’ refers to a network of social networks and influential relationships that can help someone’s business or personal dealings. In the e-commerce world, guanxi is relevant in new ways – friends work together not only to pass tips on items on mutual items, but also join forces digitally to play games and consume content that gives them access to exclusives or discounts. The other key guanxi in consumer’s lives now are online influencers (including Livestreamers) better known in the market as KOLs (Key Opinion Leaders)
Livestreaming
The jewel in the crown for the platforms and brands will surely by Livestreaming. There are millions of “Livestreamers” ranging from true superstars & niche specialists to retail store assistants & agricultural workers. In 2020, Alibaba reported a 123% increase in livestreaming sessions compared to 2019
Key Success Factor (KSF) – Authenticity
Around 100 million Chinese travel abroad every each year, often buying high-end products from their country of origin. This makes for well-informed and highly discerning shoppers. People spend a lot of researching product characteristics, images, history of the brand etc. – Consumers are really interested in authenticity and are brand-focused. They ask a lot of questions, they compare prices and they compare descriptions – so brands/products have to be very clear in the communications about the same and highlight what makes them different
In Conclusion – The Big Idea
For consumers, “winning” at a shopping festival, like Singles Day, is not just about the price. It’s about getting a great sense of value, and that can come from many other things than price. Being among the first with a new or limited edition product from a favourite brand, or discovering something special from a brand they’ve never tried before, can feel just like a big win
You see the greatest products and marketing campaigns around 11.11 – using an approach called C2M – where Consumer Insights directs Manufacturer – that greatly affect their launch plans and success
References and Sources:
1. WPP and Alibaba Group Report – Dates with Destiny