Singles Day is the world’s largest shopping event, celebrated annually in China. Originally created to celebrate singlehood, Singles Day has now become a massive shopping extravaganza, rivaling Valentine’s Day in scale. On this day, Chinese consumers flood eCommerce platforms to buy gifts for themselves and their friends. Over time, Singles Day has expanded beyond its original intent, offering an unparalleled opportunity for brands and retailers to drive significant revenue.
A significant growth driver for the day has been live streaming, where influencers and celebrities promote products directly to their followers while interacting with customers. In addition, online merchandising has taken off as a way for consumers to grab exclusive merchandise unavailable elsewhere.
Chinese consumers are more focused than ever on value for money, avoiding big-ticket items and purchasing bulk deals on everyday essentials. This is a new challenge for retail landlords as they seek to rent out space to shoppers, says Paige Chuang, senior manager of JLL’s retail leasing team.
The holiday’s popularity has drawn interest from international brands looking to leverage the momentum and reach of e-commerce in China. This year, Alibaba’s e-commerce platforms Taobao and Tmall will welcome 200,000 overseas merchants and more than 1 million new products for the weeklong event. This includes brands from the US, UK, Japan, and Australia, as well as a number of popular Chinese lifestyle and fashion brands.
This year, Singles Day began on Oct. 14 and peaked on Nov. 11, making it the longest Singles Day sales period ever. This extension will help accommodate the large volumes of merchandise and attract even more consumers.
As the day’s popularity has grown, so too have the stakes for retailers—especially in a slowing economy. Consumer spending is slowing in China, hurting sales at brick-and-mortar and online stores. This has caused e-commerce giants like Alibaba to halt a tradition of sharing detailed sales figures for the festival.
Despite these challenges, Chinese retail sales have still been on the rise this year. This has been driven by robust tourism, strong consumption by wealthy consumers, and the rebound in property investments after the COVID-19 crisis.
The key to success on Singles Day is a deep understanding of the Chinese customer, which requires extensive research and data collection. This information can be used to create a strategy that maximizes revenue and brand awareness throughout the event.
This will require a solid digital marketing campaign, social media, and online video to build a following among the most desirable demographics. With the right approach, companies can tap into this enormous potential and make Singles Day a huge success this year – and beyond. For more information on how to maximize your company’s impact this year, contact us today.