Yesterday is 11th November, Singles’ Day in China. Alibaba reported more than $9 billion in sales on that day, illustrating the buying power of the Chinese consumer and the importance of the event in the retail calendar. Alibaba turned Singles’ Day, a Nov. 11 Chinese response to Valentine’s Day, into an online shopping festival in 2009. I think the most successful thing that Alibaba did is that they recognized the commercial potential of that date. Alibaba had sales of 35 billion RMB during last year’s festival, and it increases rapidly to 571 RMB this year. The reason of that Alibaba become successful is too complex, but I am going to talk about why Nov.11 is become a national shopping carnival and Alibaba earn such huge profit.
TianMao is the platform, similar to Taobao, for retailers and customers to buy or sell online. The advantage of TianMao is that nearly all products have guarantee of being quality goods, so the reputation is better. Therefore, suspicion of products that are discounted has begun to dissipate for customers. Making them feel really save money contracts more people choose to buy what they want on that day. Unless millions of small retailers, there are many famous business join TianMao to expand their markets. That is another reason to attract people shopping on TianMao.
11th Nov is a quite interesting day in China; it’s called Single’s Day to against the Valentines’ Day. So the feeling of the public is delicate, and people like to teasing others or even themselves who are single. In short, this is a national amusement day. Choosing this day and copyrighting the “Double 11” are both very clever idea to stimulate customer power and protect profit.
But I think the media promotion also helps Alibaba to achieve this success. On the one hand, it does help to save money; on the other hand, the advertisement, we call it “preheating period”, is very successful. People are attracted to buy things they want to buy but haven’t buy because products are cheaper on 11th Nov in first year. Now it more likes a “habit” for the public. As people may more and more attention on it, Alibaba becomes more and more profitable on TianMao.
However, there are lots of complains appears as well. People thought businesses on TianMao are not honest enough. Sometimes those retailers only discount several yuan or raise the price first then discount it later. Although it happens every year, but people still want to buy for saving money. Another problem is that it causes high pressure on expressage. Even biggest express businesses like SF Express, Yuan tong Express can hardly afford the work. Some express in large cities like Beijing, Shanghai, Changsha may be paralyzed.
I always know the huge purchasing power of Chinese people, but this year Alibaba makes me realized how rich of Chinese people, lol.