Bachelor’s Day blew up China’s consumer market
This year’s Bachelor Day in China, in addition to the total sale, is a demonstration of the country’s success in the fight against the Covid-19 pandemic..
The event is already gaining momentum and is approaching records. The total sales of all companies in the first half hour of November 11 and the trade event from November 1 to 3 was 372.3 billion yuan ($ 56.3 billion).
Alibaba has already broken a record for total order revenue due to an additional sale in early November. Last year, sales totaled $ 40.5 billion.
«China’s economy is experiencing a strong recovery. The consumer behavior of the country‘s residents has already returned to the pre-crisis level, and intends to increase it», – He speaks Xiaofeng Wang (Xiaofeng Wang), analyst at marketing research firm Forrester.
For brands and retailers trying to get things done after months of isolation and restrictions, such sales – path to salvation. According to Wang, many companies «double» own statistics of goods sold.
A survey by Oliver Wyman found that 86% of Chinese consumers are willing to spend as much or more than they spent on last year’s Singles Day..
«Chinese shoppers are spending like crazy. They saved a lot of money while they were at home on self-isolation.», – said a company representative Jacques Penhirin (Jacques Penhirin).
IN «Bachelor day» (Singles Day) regularly makes more sales than «Black friday» (Black Friday) and «Cyber Monday» (Cyber Monday) put together.
This event (also known as Double 11) is tied to an unofficial Chinese holiday celebrated by non-relationships.. It was the 11th number that was chosen for a reason – two ones symbolize the absence of a pair.
Alibaba began offering discounts on this day in 2009 and has since turned the event into an online shopping extravaganza..
Other Chinese e-commerce platforms such as JD.com, Pinduoduo, Red and all interested online shops also participate.
The event has picked up steam and beyond China. Alibaba’s Southeast Asia subsidiary Lazada offers double discounts in Singapore, Malaysia, Indonesia, Thailand and Vietnam.
The company added an additional three days of sales this year (which ran from November 1st to 3rd) due to the pandemic.
A few more days of huge discounts help brands and sellers catch up with the quarantine.
Oliver Wyman noted that this year, Chinese consumers are paying particular attention to the local market for smartphones and other electronics..
«It’s not about patriotism, people have really noticed improvements in local technology, design and quality», – said Penhirin.
Another reason why the Chinese are more focused on the domestic market is that some of them have revised their consumer strategies in the aftermath of the pandemic, analysts at the consulting firm Bain say. & Company.
Buyers, for example, can count iPhone is too expensive and cheaper devices from Huawei or Xiaomi instead , which, in their opinion, are comparable in design and technology.
The event draws additional attention to Alibaba and its founder Jack Ma. Last week, Chinese regulators the long-awaited IPO of Ant Group, Alibaba’s financial partner, was banned. Regulatory authorities pointed to «serious problems», which can cause Ant «will not meet the listing conditions or disclosure requirements».
Formerly Ma publicly criticized the actions of regulators for a slowdown in development the innovation market, which industry observers believe also played a role in disrupting the IPO.