There was a bit of drama in the days prior to the annual appointment with the number one shopping event in Asia. The Chinese regulators put a last-minute hard stop to the highly anticipated Initial Public Offer (IPO) of Ant Group, the financial affiliate of Alibaba.
Regulators raised concerns about “major issues” that might cause Ant “not to meet the listing conditions or disclosure requirements.” Days earlier, Alibaba’s “big boss” Jack Ma publicly criticised Chinese regulators for obstructing innovation, a comment that many noted might have also played a role in jeopardising the IPO.
Despite so many online platforms, including those owned or controlled by Alibaba, took part in Singles Day, the “anti-Valentine’s Day” celebration that takes place every year on 11/11.
China Consumers Association took actions for the first time to urge against “irrational consumption” during the Double 11 craze. I have noticed how in the past couple of years, the headlines about 11/11 focus more and more on how much money these online giants facilitated in transactions with their merchants. I shall make no exceptions this year.
Alibaba could be considered the brain behind the 11/11 sales event. It was in 2009 when they started offering Singles Day discounts and ever since its inception it has turned into the most hyped online shopping bonanza. Other Chinese e-commerce platforms like JD.com (JD), Pinduoduo (PDD) and Red participate by piggy-back-riding on the popularity of the event.
Alibaba’s rival JD.com’s extends the seasons to almost two weeks. In the last edition of 11/11, JD has scored a new record 271.5 billion yuan ($41 billion) in sales during the whole duration of the event; a stunning growth of 33 per cent compared to last year.
The Singles Day has also gained traction outside China: in Southeast Asia, Alibaba addresses the market with its subsidiary Lazada, offering Double 11 discounts in Malaysia, Singapore, Indonesia, Thailand and Vietnam.
11/11 has become a cultural phenomenon far beyond the mere shopping experience. There are 11/11 Galas and 11/11 concerts counting down to the beginning of the celebration much like New Year’s Eve, and the popularity of the event has already crossed borders to the western world. Taylor Swift and Katy Perry have performed in the 11/11 launch concert in the past two editions.
Let us talk about numbers: according to Aliababa, Chinese consumers collectively spent close to $74 billion during Singles’ Day on their online retail platforms, scoring a new record for the world’s biggest shopping festival.
Around 500 global brands, such as Apple, Huawei, Xiaomi, Nike, Adidas, L’Oréal, Estée Lauder and Lancôme each surpassed $15 million on Alibaba’s platforms.
For brands that were heavily relying on offline retail sales, 11/11 came as a blessing and an opportunity to make up for the massive losses accumulated during the extended months of lockdown.
Electronics, fashion and beauty are the categories that usually drive the largest volumes in terms of sales value. Now more than ever is the best time to be in the business of selling online. (The writer is a member of the International Press Association)
STEFANO VIRGILLI
stefano@virgilli.com
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