Double 11 is the world’s biggest shopping festival. The GMV (Gross Merchandizing Value), including all online platforms, reached 952 billion CNY (~136 billion USD) last year. Looking at 2022, the 618 Mid Year Sales GMV only grew by 1% to 583 billion CNY, and Double 11 GMV will likely follow with a one-digit growth, if not a decline.
Tmall’s Double 11 Pre-sale started on October 24th, and Taobao Livestream is on fire. More than 450 million people viewed the Livestream of “King of Lipsticks” Austin Li, doubling the figure from last year. The No.2 Livestreamer was Luo Yonghao, a top tech influencer and Livestreamer. He was quite active on Douyin, and just had his debut live stream on Taobao which attracted 26 million viewers. Unlike Austin Li’s focus on cosmetics and beauty brands, Luo Yonghao caters to consumer electronics, sportswear, food & beverage, etc.
According to the 4-hour pre-sale results from Tmall Double 11, beauty & skincare is still the vertical that moves the most revenue. The 2 top cosmetics brands (L’Oréal and Estée Lauder) have reached 1 billion CNY in estimated sales. Due to the fierce competition in the sector, beauty brands have to offer the best price to top Livestreamers and expect an “economy of scale.”
As “dynamic zero” COVID policy prevails, economy shocks and consumer confidence drops, brands need to be more cautious in finding a balance between short-term promotion activities and long-term brand building. Consumer loyalty needs to be the future focus.
“Double Eleven” in 2022: customer loyalty is more worth pursuing than trillion-level sales (Bain & Company, CN)
Bain & Company surveyed nearly 3,000 consumers from different cities in China to capture the trends of this year’s Double 11. Among the respondents who participated in last year’s Double 11 and planned to continue participating this year, 34% of consumers plan to reduce their total online and offline spending during this year’s Double 11; only 24% of respondents indicated that they would increase consumer spending. In addition, 69% of the respondents plan to shop on three or more platforms during the Double 11. (Source: WalkTheChat)
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