Singles’ Day, held annually on November 11, began as a festival of young Chinese people celebrating their pride in being single. Alibaba started promoting the day as a shopping day (officially called the 11.11 Global Shopping Festival) back in 2009. Only 27 brands participated then, generating total GMV of $7.7 million – more than six times the average daily GMV of $1.2 million. Since then, the shopping festival has grown exponentially: Last year, total GMV on Alibaba’s various platforms hit $30.8 billion, or ¥213.5 billion, up 27% from the prior year and a whopping 252% CAGR over the past nine years. Cainiao, Alibaba’s logistics subsidiary, processed more than 1 billion orders. [caption id="attachment_87517" align="aligncenter" width="720"] Source: Alibaba/Coresight Research [/caption]   No Longer an Alibaba Exclusive Event Although started by Alibaba, other online platforms have joined the fray. JD.com reported US$23 billion in GMV in 2018, a 26% increase over 2017. The marketplace sold 29,500 tons of fresh food, double last year’s volume, and over 400 million fast-moving consumer and food products. Non-Chinese companies are also getting in on the action: Last year, companies from 230 countries participated in the event, up from 225 in 2017. What You Should Do Now to Participate in Singles’ Day 2019 As we approach mid-year 2019, brands and retailers interested in Singles’ Day should start planning now to ensure products, logistics, warehouse space and marketing efforts are prepared. Here’s what you should be thinking about:

• Limited-edition products.
• Social media marketing, especially on WeChat.
• Logistics, from manufacturing to distribution center to delivery.
• A narrower assortment featuring a few hero products with deep inventory to be offered at discount.

Marketing Chinese holidays emphasize family and Chinese culture. Most (but not all) are good branding and promotional opportunities. Brands and retailers that create marketing strategies leveraging specific festivals will be poised for success. Brands must boost consumer awareness through social media and incorporate Chinese cultural elements into offerings. Logistics Alibaba would like brands and retailers to use its Cainiao logistics network for Singles’ Day sales made on its platforms. However, warehouse space for Cainiao is limited and Alibaba prioritizes space based on products’ proven track record. It is important for companies new to Alibaba to prepare inventory and product lists in advance. If you need to use Alibaba’s Cainiao logistics, you should secure warehouse space before June. Merchandise Singles’ Day is not ideal to test new products. Instead, companies should offer hero (most popular) products at a discount. Chinese consumers will expect low prices and buy from brands offering the best deals. For brands not flexible with promotional pricing, we suggest product bundles, either a package of different products that gives consumers a chance to discover a larger product assortment, or a large quantity of one hero product. Be the First The first hour on Singles’ Day is extremely important. Similar to US consumers who wait in line (sometimes overnight) for Black Friday doorbuster deals, Chinese shoppers will add products to their online shopping carts and wait till midnight (when prices drop) to check out. Alibaba reported GMV of US$1 billion in the first one minute and twenty-five seconds of last year’s Singles’ Day – and some US$10 billion in the first hour. Participants in 2018 Singles’ Day The huge opportunity presented by Singles’ Day has drawn ever more brands – both domestic and international. There were 237 brands on Alibaba’s platform in 2018, up from 167 brands the year before. Over 40% of purchases on Singles’ Day were of international brands. The top sources of imported products were Australia, Germany, Japan, Korea and the US. Notable new entrants in 2018 included US sportswear retailer Foot Locker and grocery chain Kroger, both of which participated via Alibaba’s Tmall Global. [caption id="attachment_87518" align="aligncenter" width="720"] Source: Alibaba/Coresight Research[/caption]   On JD.com, products from Germany, Japan, the Netherlands, Korea and the US were popular. Popular brands included Apple, Dell, Dyson, L’Oréal, Pampers and SK-II. What Other Brands Did on Singles’ Day Snack brands offered price and multi-purchase discounts, but some generated interest through novelty and innovation. For example, chocolate brand Dove introduced chocolates shaped like the Tmall cat logo. Dove leapt from 86^th position to 4^th place in the snack category in terms of sales. [caption id="attachment_87519" align="aligncenter" width="720"] Dove exclusive products for Tmall on Singles’ Day
Source: Dove/Tmall [/caption]   Similarly, Pechoin launched a campaign called “crazy shopping cart” on WeChat before the festival. The campaign centered around Chinese cultural elements such as dragons, with pictures containing a virtual shopping cart with Pechoin products so WeChat users could share the images with other users. The company also offered gifts appealing to consumers who watch Chinese historical dramas, and freebies for the first 1,000 customers who bought select products. Pechoin was the best-selling women’s skincare brand on Tmall on Singles’ Day 2018. [caption id="attachment_87520" align="aligncenter" width="720"] Pechoin’s Singles’ Day promotions on Tmall
Source: Pechoin/Tmall [/caption]   Uniqlo offered multi-purchase discounts, such as cash coupons worth ¥50-150 off purchases over ¥400–1,000. Uniqlo also promoted its products on Chinese social media ahead of Singles’ Day. The brand introduced a mini app on WeChat, which let users track product availability across channels. The company also informed customers when specific products were selling out. Uniqlo was the most popular women’s wear brand on Tmall that day. [caption id="attachment_87521" align="aligncenter" width="720"] Uniqlo’s Tmall promotion and Weibo post for Singles’ Day
Source: Uniqlo/Tmall/Weibo [/caption]   Creating 11.11 the US For companies not doing business in China and not planning to enter China soon, there is still opportunity to leverage the shopping festival: Just as Black Friday has spread to other countries, Singles’ Day is also making its way overseas. In 2018, Urban Outfitters, Clinique, H&M and Giorgio Armani were among some of the notable brands that held Singles’ Day promotions outside China. Ebates and The Wall Street Journal also both offered special promotions.   [caption id="attachment_87522" align="aligncenter" width="720"] Brands participating in Singles’ Day in the Us
Source: Company websites
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