Master article with all trends 2023 by experts. As the 15th year of Double 11, or Singles Day, approaches, it has evolved from a Tmall initiative to one of the most significant annual events in the e-commerce industry, carrying with it high expectations. Especially this year, Double 11 is edefining the value of mega sales events as consumer confidence is being restored and consumption becomes more rational.
Key Points 2023
Need a cost effective TP (Tmall Partner) to sell in China?
We are an Official Tmall Partner e-commerce Agency. Our Services: E-Commerce, Search Engine Optimization, Advertising, Weibo, WeChat, WeChat Store & PR.
- Consumer industry is showcasing its recovery through this year’s Double 11.
- 4 big Platforms like tmall, JD.com, Douyin, and little Red Book (Red) have undergone significant adjustments and use Double 11 as an experimental field to land their new e-commerce narratives and alleviate growth anxiety.
- For many categories and merchants, Double 11 remains the most crucial breakout opportunity of the year, where they need to find new competitiveness beyond discounts.
With the increasing density of promotional events and the blurring boundaries between platforms, the question arises on how to create a new Double 11.
What strategic shifts are different platforms making, and what opportunities do merchants have during Double 11?
How can platforms and merchants create a new gravitational pull to ignite consumers’ “buy, buy, buy” enthusiasm?
- The allure of Double 11 primarily lies in low prices for consumers.
- The competition around pricing is a focal point of platforms and merchants during mega sales.
- This year, platforms continue to enhance the attractiveness of discounts and fight for the “lowest price on the net.”
- Low price competition is more explicitly reflected in the merchant rules of platforms.
- However, as low price becomes a common strategy, the question arises if “lowest price on the net” is a real proposition for merchants.
- Platforms are now focusing on “immediate discounts” and “direct price reductions” as key play tactics.
- For instance, Douyin has abandoned cross-shop discounts and directly opted for official immediate discounts.
- Platforms like Tmall and Tao Bao are organizing “Double 11 everyday low price” branch activities to attract merchants.
Price Price Price:
The competition around low prices is intensifying, and platforms are also targeting high-value users such as platform members and merchant members. Strategies to help KOLs and merchants accumulate member users are being developed.
Douyin Mall Gold Card
Douyin, for instance, has introduced the “Douyin Mall Gold Card” to target consumers with a high repurchase intention. As the e-commerce landscape continues to evolve, the true value of Double 11 will be revealed through these strategic shifts and innovative initiatives by platforms and merchants alike.
Expanding the Commodity Pool, Highlighting Supply Differentiation
- In the low-price competition, platforms are essentially testing their systemic capabilities.
- These include their ability to strengthen low-price mentality around supply, algorithms, and ecological resources.
Expansion in New Formats and Support for New Merchants:
- Platforms are investing in new business formats and categories, such as local life and instant retail.
- For example, Tmall Supermarket has launched a new fulfillment model called “Half-Day Reach,” which is now available in 14 cities.
- Douyin has also been focusing on local life and instant retail, positioning its “Hourly Reach” at the front of its mall homepage for more exposure.
- Kuaishou has launched a separate work platform for local life merchants called “Kuaishou Local Merchants” to help B-end local merchants improve their operational efficiency.
- Xiaohongshu is tapping into new growth areas such as trendsetting clothing, cultural tourism, and high-end hotels, in addition to its traditional strengths in beauty, maternal and child care, and food.
Support Policies for Different Levels of Brands:
- Platforms are introducing support policies for different levels of merchants and attracting more new brands.
- New merchants significantly expand the platform’s commodity supply richness and support low-price mentality.
- For example, opening stores for free, waiving commissions, reducing technical service fees, and simplifying the opening process have become standard practices for platforms.
- At the beginning of this year, JD.com launched the “Chunxiao Plan” to attract individual sellers and has further upgraded the plan to increase support and lower thresholds for new merchants.
- Xiaohongshu’s “Flash Brand Plan” is aimed at cold starting new brands and selecting new buyers, providing exclusive matching tools.
Building a Festive Atmosphere: End of Covid
- Ali, as the founder of Double 11, is also actively creating a festive atmosphere.
- Compared to last year, the participation of Taobao, which focuses on small and medium-sized merchants, in Double 11 has significantly increased.
The Ecosystem Resonance Below the Price Surface:
- After 15 years, Double 11 has entered the ecosystem battle stage for major platforms.
- Platforms are leveraging their ability to mobilize ecological resources to create new attractions for consumers and merchants.
Focus on Consumer Side on Douyin (Tiktok)
- Platforms are focusing on satisfying more consumer needs and scenarios.
- Platforms have introduced modules such as Douyin E-commerce Hourly Reach and Tmall Supermarket Half-Day Reach to enhance consumer experience.
- Platforms are also cutting into the social and entertainment levels to unlock potential consumer needs, such as the “AB Double-Sided Carnival” also proposed by Taobao Live.
- With the intense competition for traffic, platforms are challenged to mobilize internal and external resources.
- Platforms are actively connecting with external ecosystems, such as the deep cooperation between Alibaba’s Mama and Tencent Advertising.
- Douyin Mall has also upgraded its “Festival Alliance Plan” to optimize cooperation thresholds, resource exchange methods, and cooperation forms.
Overall, platforms are exploring new definitions for Double 11 and creating innovative and value-driven consumer experiences. This innovation could be related to optimizing the full consumption chain, meeting new lifestyles, or integrating consumption, socializing, and entertainment.