Single’s Day 2015: Global Aspirations
Few things symbolise modern China more than Single's Day. The most obvious parallel is the remarkable scale of the day - 278 million products worth $9.3 billion sold in 24 hours last year, and it is on track to be even bigger this year. It also represents how the Internet is addressing some of China's big challenges such as limited retail infrastructure in the hinterland. In addition, this year's integration with 180,000 brick & mortar stores in 330 cities illustrates how the lines between online and offline are increasingly blurring in China.
Yet Single's Day's most interesting representation of contemporary China is that a celebration based purely on consumerism has become one of the biggest days of the Chinese calendar; with the build-up, buzz and now the Chinese New Year-style-celebrity gala, rivalling all other Chinese celebrations for scale, with the exception of Chinese New Year.
Like the Lunar New Year, which is celebrated in cities in every corner of the world, Alibaba is hoping Single's Day will become the next festival that China exports globally. The company has aspirations to become a truly global company, which is one of the focuses of Single's Day '15. Not only is it bringing countless products from around the world to Chinese consumers, it is hoping the massive Single's Day discounts from 200,000 mainly-Chinese manufacturers on AliExpress will capture the imaginations of Americans, Russians, Brazilians and many other countries as it has with Chinese consumers. Single's Day is Alibaba's Trojan Horse; which it hopes will establish the company for consumers globally.
Things are on track for an even bigger Single's Day this year. $100 million was spent a minute in the first half an hour, with 2012's $3.1 billion total blitzed in 31 minutes. Within 90 minutes, $5 billion dollars had been spent, 72% on mobile. By 1:15am, consumers from 200 countries and regions had bought something. Chinese couldn't get enough international products, with Japan, USA, Korea, Australia and Germany the top-5 origins in the first hour.
Many of the 30,000 international brands from 25 countries who are participating in Single's Day '15 look to be selling well. Some foreign retailers sell two-three months worth of products in the single day. It's no surprise that foreign products are the focus of this year's Single's Day - 40% of all products sold online in China are foreign, versus just 10% of China's overall retail sales.
China Skinny was fortunate to be hosted by Alibaba at the Gala in Beijing, and it did not disappoint. The Gala was full of interactive mobile shaking, prizes, Chinese, Korean and Taiwanese celebs, a prefilmed advert with Kevin Spacey addressing the Chinese as the President of the USA (the crowd went wild) and a special appearance with Jack Ma and James Bond (aka Daniel Craig) who thrilled the audience.For those looking for the biggest thing on Single's Day this year - it may be the late Michael Jackson's Neverland, which is currently on a one-day auction with a starting price of ¥500 million ($79 million).With all the hype, Single's Day - like any other day in China - is incredibly competitive, which is something that China Skinny can help with. Here are this week's news and highlights for China:
Internet, Mobiles, Social Media & Ecommerce
Alibaba’s Internationalisation Efforts
In a little over an hour, consumers from more than 200 countries had transacted on Single's Day. Chinese shoppers couldn't get enough foreign brands, with some of the top sellers including Aptamil, Nurtion, Bellamy’s, Cambridge Sachet, Missha, Coach, Avenue, YSL and Clarks.
Alibaba’s Efforts for Domestic Growth
As Alibaba expands abroad, it is not forgetting its home market with a big focus on rural China and logistics.
Photos: Alibaba’s Pre-Singles Day Gala
China Skinny was kindly hosted by Alibaba for the Single's Day Gala festivities at the Watercube in Beijing. Here are some of the photos.
Chinese Online Buyers Love Imported Goods and Promotion
Promotional pricing accounts for 14% of sales in physical stores in China, and 35% of online retail sales, helped by events such as Single's Day. Goods aren't always cheaper online though - the average price of toothbrushes sold online is 102% higher than in physical stores.
Michael Jackson's Neverland Ranch Looks for Chinese Buyers via Taobao
Neverland is up for sale on Taobao with a starting price of ¥500 million ($79 million). It follows the sale of a $258 million luxury resort in southern Portugal which sold via a Taobao auction in July.
Social Users in China Share Personal Thoughts
The most popular content shared by Chinese social media users aged over 20 are personal thoughts (36.8%), daily life photos (32%), dining and travel photos (26.8%) and comedy and jokes (26.8%) according to Tencent Penguin Intelligence.
Chinese Consumers
US vs. China: Whose Century is it, Anyway?
Over the past ten years, the number of Fortune 500 companies in China has grown from 16 to 98, while the U.S. has dropped from 178 to 128. Whose century it is makes for an interesting debate.
"Multinationals are no longer sitting comfortably at the very front of the plane, but compared with Chinese firms, they are “still flying in business class," says Xiang Bing, dean of Beijing’s Cheung Kong business school.
China Rolls Out ‘Emergency Teams’ to Knock Out Disney Knockoffs
Chinese authorities have launched a year-long special campaign to protect Disney's trademarks in advance of opening their $5.5 billion Disney theme park in Shanghai. 86% of U.S. businesses surveyed by AmCham believe trademark enforcement is improving in China. Disney is also getting special treatment with the government shutting down local polluters, helping to form a Disney-themed firefighting force and issuing custom weather reports for planning events such as parades and fireworks shows.
Food & Beverage
Understanding Middle Class Chinese Consumers’ Attitudes to Food
Over 80% of Chinese consumers say if they see a new food, they will try it, with over 70% looking for new experiences daily according to MLA. 86% say they try to buy additive-free food.
Business is Booming for Australian Wines in China
Australian wines have seen average prices rise 25.2% and volume increase 20.5%, helped by greater interest from Chinese consumers on the back of the FTA. 39% of Chinese now buy wine for health reasons, up from 31% last year.
Chinese Tourists
Alitrip Wants to Innovate and Disrupt Travel - Here's How
On Single's Day last year, 500 million travel packages, 300,000 air tickets and 150,000 hotel room nights sold on AliTrip. The platform hopes to increase sales this year by offering innovative services such as hotel check in and out by mobile, and removing the need for credit card authorisations and deposits on bookings.
Environment
China Burns Much More Coal Than Reported, Complicating Climate Talks
Since 2000, China has been burning up to 17% more coal a year than the Government previously disclosed - greater than Germany's total fossil fuel emissions - according to data in an energy statistics yearbook published.
Investments & Property
How Chinese Developers Are Changing The Face Of London
: Across London, the biggest and most luxurious construction projects are all the work of Chinese developers, including what could be the tallest apartment building in Western Europe.
That's the Skinny for the week! See previous newsletters here. Contact China Skinny for marketing, research and digital advice and implementation.
