Shanghai Today
New trends transforming Singles Day celebration - November 12, 2024
改变双十一购物节的新趋势
AI tools, livestreaming, niche segments and new tie-up launches are among the highlights of the Singles Day annual shopping promotions.
The annual event, initiated by Alibaba in 2009, has become an industry wide promotion for physical stores as well, and it's no longer about deep price cuts only.
The holiday was first picked up by students at Nanjing University who used the occasion to celebrate being unattached and would often buy gifts for one another.
Since 2022, Alibaba ceased to reveal the actual transaction value of its sales for the promotion period, and JD also followed suit.
Industry watchers point to new trends that could extend beyond the shopping event and bring lasting impact for the retail industry, the adoption of generative AI tools, more integrated logistics and payment services.
The adoption of AI tools
The Internet giant's push into generative AI field and consumer preference could usher in a new development phase for retail.
Chinese mainland consumers are more trusting toward the technology compared with the global average level, with the top features including using Al capabilities for providing product recommendations, customer service, financial transactions and medical diagnosis, according to PwC's Voice of the Consumer Survey.
Bain & Company's latest survey of over 500 merchants trading on China's giant ecommerce platforms also shows as many as 52 percent have used at least one generative AI-enabled tool.
Slightly more than half have used generative AI-powered customer service chatbot tools, and about one in three have used AI to generate content.
China's prowess in e-commerce and research, coupled with unusually high consumer trust in AI, suggests the new technology could grow rapidly in the Chinese retail scene, it noted.
The integration of social networking platforms and e-commerce
Scrolling through the colorful pages and fancy short video clips on shopping sites Taobao and JD, it's hard to tell the difference between a shopping app and a social networking site.
The integration of social networking and shopping is another prominent trend.
Online bazaars with specific themes such as street styles and fashion showrooms have been set up by Xiaohongshu (red), targeting interest groups that want to seek fun on social media sites.
It has also invited standup comedians and famous actresses to stage livestreaming sessions to allow better understanding of online merchandise.
In the first week since October 12, the number of merchants with sales over 10 million yuan jumped 2.3 times from a year ago, according to the Shanghai-based social lifestyle site.
Less about competition, more about interconnectivity and on-demand service
Market watchers suggest the increasing interconnectivity between payment sites and logistics service providers could also unlock greater potential.
Last month, JD became the latest online shopping site to accept a third party payment service, allowing shoppers to use Alipay for online purchase, following Taobao and Tmall's acceptance of WeChat Pay.
Domestic consultancy DJ Insight expects Taobao and Tmall could add as many as 152 million new shoppers after it connects third party payment tools.
Since October, Tmall and Taobao vendors are also able to choose JD Logistics as a third party courier service provider in addition to other players like SF Express.
On-demand delivery is another bright spot. Meituan and JD Daojia have stepped up discounts for on-demand delivery service.
Health and wellness categories have been on the rise as well as treatment options, nutritional supplement for chronic diseases like respiratory and cardiovascular diseases.
Meituan's drug delivery serve saw a more than 180-percent increase in spending since late October for chronic diseases medicines.
Niche segments are on the rise
In the first 10 days since the promotions kicked off in mid October, over 370 brands recorded combined sales of more than 100 million yuan on Taobao and Tmall sites.
Lameda Sports Co, a local specialty brand for cycling apparel and gadgets, joined the promotional campaign during the Singles Day for the 13th year on Tmall.
The company contributed the sales growth to its dedication for the niche segment and the overall rising awareness for sports and wellness.
Home and overseas sports brands like Awka and Helly Hansen are also growing fast among online shoppers.
Jennifer Ye, mainland China consumer markets leader at PwC, believes that, despite the cautious spending, new opportunities are rising for emerging brands and cartoon, animation and gaming tie-ups.
Source: Shanghai Daily
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