In the midst of 2009, Zhang Yong, then president of Taobao, and his team embarked on an ambitious endeavor to bolster the brand’s reach. Little did they know that their plans would inadvertently lead to the birth of a spectacular online shopping extravaganza known as “Double 11.”
The choice of November as the date was strategic, positioned perfectly between the National Day Golden Week and the end-of-the-year sales season. Additionally, the cool weather during Autumn and Winter made it an opportune moment for consumers to stock up on warm clothes. However, November lacked significant holidays in China, save for the numerically intriguing 11.11, nicknamed “Singles’ Day” by jocular netizens. In a moment of realization, Zhang Yong exclaimed, “That’s just perfect. If you’re single and have nothing to do, why not indulge in some retail therapy?”
What initially seemed like a serendipitous turn of events has since given rise to an explosive consumption phenomenon, captivating the hearts and wallets of millions of consumers across China and even overseas.
GMV of Double 11 Shopping Festival
The Double 11 shopping festival in China has undergone a remarkable transformation, evolving from a modest event to a retail extravaganza of epic proportions. What started in 2011 with a humble gross merchandise value (GMV) of ￥5.2 bn has since become an unstoppable force, captivating the hearts and wallets of millions.
With each passing year, the Double 11 phenomenon grew stronger, defying expectations and redefining the retail landscape.
The festival continued to break barriers, reaching new heights with a staggering size of ￥965.12 bn in 2021. And last year, as it’s the final year of the COVID-19 pandemic, people had spent time indoors for way too much time, and along with their desire to purchase dropped off, the GMV of Double 11 fell a little bit in 2022, but still maintain its stronghold, with an approximately ￥934 bn.
Why Double 11 Attract Consumers?
Discounts & Coupons
The Double 11 shopping event entices consumers with its irresistible discounts and coupons. Shoppers eagerly await this time to take advantage of significant savings on a wide range of products. The event offers a unique opportunity to fulfill shopping desires while enjoying attractive discounts, making it an exciting time for bargain hunters and savvy shoppers.
Livestreams
Complementing with livestreams, it is also one of the standout features of the Double 11 Festival in the recent years. This aspect adds a new dimension to the shopping experience, allowing consumers to engage with KOLs, influencers, and witness product demonstrations, then make informed purchase decisions in real time. Livestreams create an interactive and immersive environment, enhancing the overall shopping experience and offering a unique way to explore and discover products. And don’t forget, livestreams consistently reward viewers with unexpected discounts or coupons for the promoted merchandise, allowing the audience to place an order at the lowest price online.
Ads Welcome
The Double 11 event is accompanied by a widespread advertising campaign that builds anticipation and excitement. Advertisements for the event can be seen across various social media platforms, creating a buzz and drawing attention to the upcoming shopping extravaganza. In this period of time, tons of ads will not make people feel as disgusted as at other times. However, letting consumers be well-informed and eagerly await the event, further adds to the appeal of the Double 11 event and attracts a larger scale of audience.
Suitable for Everyone
The Double 11 Festival caters to a wide range of consumer preferences, making it suitable for everyone. Whether individuals seek luxury goods, electronics, cosmetics, everyday essentials, or unique niche products, Double 11 offers a vast array of options to fulfill diverse shopping desires. This inclusivity ensures that consumers from different backgrounds and with varying interests can participate in the event and find products that align with their needs and preferences.
By combining attractive discounts and coupons, engaging livestreams, pervasive advertising, and an inclusive shopping experience, the Double 11 event successfully captivates and appeals to consumers from various walks of life, making it a highly anticipated and exciting shopping event.
Major eCommerce Platforms Launching Double 11 Festival
Alibaba’s Taobao & Tmall
Taobao Tmall is gearing up for a highly significant Double 11 festival this year. Not only does it signify the continuous activation of the consumer market, but it also holds particular importance as the first Double 11 since Ali’s strategic shift and the re-establishment of its direction. Adding to the excitement, this year’s Tmall Double 11 party is set to make a comeback.
To ensure a remarkable event, Taobao Tmall has organized several merchant conferences, focusing on various segmented fields, intending to attract a broader range of merchants. The Double 11 Merchant Conference for the field of Fresh and Food serves as a prime example. Taobao Tmall has expressed that this year’s Double 11 will be a grand celebration for both consumers and brands/companies alike, with over 700 million merchants expected to participate. The Taobao Tmall Merchant Conference has further announced 10 brand-new ecological incentives, amounting to an impressive ￥400 million.
Through these efforts, Taobao Tmall aims to create an unparalleled shopping experience for consumers while providing a platform for merchants to showcase their products and engage with a massive consumer base. The strategic initiatives and incentives unveiled at the merchant conferences exemplify Ali’s commitment to making this year’s Double 11 event a resounding success for all stakeholders.
JD.com
Jingdong (JD.com) is undergoing a necessary change by shifting its focus towards providing traffic support to product prices and merchant services, enabling merchants to gain increased exposure in these crucial areas.
Furthermore, JD.com offers a range of business growth methods, including “big promotion,” “content,” and “users” strategies. Through initiatives such as livestreams, short videos, and new product showcases, JD.com provides merchants with valuable traffic support. The company also dedicates substantial resources, including “Billion Subsidies,” advertising incentives, and reduced deduction points to empower merchants and foster growth. These efforts are part of JD.com’s comprehensive approach to drive business expansion and help merchants capitalize on the immense opportunities presented during the Double 11 event.
RED (Xiaohongshu / Little Red Book)
On September 26, RED organized the “2023 RED Double 11 eCommerce Partner Mobilization Meeting,” where they announced their substantial investment for the Double 11 period. They plan to allocate tens of billions of traffic support and offer billions of subsidies to aid buyers and merchants in their development on the RED platform. These investments primarily focus on 3 key resources: livestreams, notes, and search features, as well as the in-app mall, ensuring merchants receive significant exposure to millions of potential customers. Additionally, the platform will provide billions of subsidies to merchants, granting them access to excellent buyer resources.
Furthermore, RED has introduced several noteworthy initiatives, including the “2 matching programs,” “3 livestreams principles,” and “8 support policies.” These programs aim to enhance the collaboration between merchants and buyers, fostering growth and facilitating better cooperation. RED also offers targeted large coupons to users, followers and fans, encouraging their participation and incentivizing the increase for both sides.
Douyin (Chinese Tiktok)
The “Key Products” event is a central initiative in Douyin’s eCommerce promotion during this year’s Double 11 Festival. It is designed to support small and medium-sized brands while enticing users to make purchases. The event encompasses 3,500 product categories, providing a wide range of options for users. Additionally, there are hundreds of millions of products available on the platform, ensuring a diverse selection for consumers. To further encourage sales, Douyin is providing 5 billion units of traffic support, ensuring increased visibility for participating merchants.
In addition to traffic support, Douyin is offering various subsidies to enhance the shopping experience for users. Some goods have subsidy rates as high as 30%, which can significantly reduce the cost for consumers. These subsidies play a crucial role in attracting users and driving consumption on the platform.
By organizing the “Key Products” event and providing substantial traffic support and subsidies, Douyin aims to create a favorable environment for users to make purchases. This initiative highlights Douyin’s commitment to fostering growth and facilitating a vibrant eCommerce ecosystem within its platform.
“Hindsight”: Why Double 11? What’s the point of it?
The Double 11 shopping festival is more than just a shopping spree; it represents a celebration of consumerism, innovation, and the power of eCommerce. It has redefined the way people shop and has made a lasting impact on the retail industry. With its ability to captivate and inspire, Double 11 has solidified its position as a global retail powerhouse, leaving an indelible mark on the world of eCommerce.
On the other hand, the Chinese economy is indeed characterized by its dynamism, strong savings culture among the population, and robust courier industry. The convergence of the “suitable goods” culture in China has given rise to the phenomenon of Double 11, which has become a significant event in the country. It is essential not to overlook or underestimate the impact of this phenomenon. The popularity of the Double 11 Festival highlights China’s open economy and its embrace of technological advancements.
Moreover, the Double 11 event is gradually expanding its reach beyond the domestic market and making its mark on the global stage. It has evolved into a celebration for global consumers, potentially impacting the global economy in various ways. This trend not only demonstrates China’s synchronized development with the rest of the world but also influences and even leads international development to a certain extent.
The growth and global influence of Double 11 reflects China’s economic prowess and ability to shape trends in the world economy. It serves as a testament to China’s ongoing development and its role as a significant player in the global marketplace.
