It is no secret that e-commerce in China has seen exponential growth over the last few years. In fact, according to independent researchers, e-commerce makes up 44% of all retail sales within China. With those numbers, it is no wonder why Double 11 or Singles Day in China is expected to see massive price cuts, discounts, and promotions for consumers.
With so many hot deals on the horizon, many famous streamers, influencers, and social media stars are expected to live stream for hours as the shopping spree of Double 11 unfolds. During a Double 11 Pre-Sale, “King of Lipstick” Li Jiaqi, one of the most famous live streamers sold over 11.5 billion Yuan in merchandise ($ 1.8 billion USD). Many other streamers have followed suit with similar figures, and that was only the Pre-Sale. These numbers go to show how much Singles Day has become a national festival in China and around the world.
Chinese Wholesale Manufacturers and Resellers Are In Love with Singles Day
Double 11 may be about celebrating the single life. However, Chinese manufacturers and resellers have fallen deeply in love with the day. When it comes to wholesale Chinese products, luxury brand items, and other goods, this shopping extravaganza is the perfect moment for smart shoppers to take advantage of incredible savings.
But it is not only Chinese buyers that can take advantage of the incredible savings. Websites like Made-In-China.com are offering fantastic offers for foreign buyers, resellers of wholesale Chinese products, and anyone that wants to buy in bulk.
We are seeing a new trend of Chinese manufacturers and brands utilizing an entertainment model across e-commerce platforms. Instead of static ads, and dynamic content, live streaming entertaining demonstrations for hours has become the new norm. Everything from demonstrations of cleaning products to makeup tutorials is being used to sell large amounts of products across the web. Ever since 2009, live streaming has become one of the most popular ways resellers and brands attract large audiences and big sales numbers.
Why Has Double 11 Become Such A Popular Online Shopping Festival?
Ultra-high sales numbers paint a picture of a country waiting to take part in what has become a national phenomenon. But what is the consumer psychology driving the ever-increasing popularity of Double 11? The good discounts attract buyers of all ages, but consumer psychologists believe that being single makes younger individuals feel lonely, isolated, and depressed. Naturally, shopping serves as a form of retail therapy that helps people feel connected and a part of a greater community.
For this reason, experts, and researchers believe that the idea of social sharing, live streaming in groups, and connecting with other singles in an online shopping festival serves as a way to bring people together. It is not so much about the discounts as it is about feeling a part of something greater than the individual. And if psychology has taught us anything, it is the fact that people yearn to feel connected to one another, especially single people.
Another reason why Double 11 has become so popular has to do with the Chinese economy always seeking to commercialize and commodity holidays. As Chinese companies analyze the success of other popular holidays like The Qixi Festival, the Mid-Autumn Festival, or Western Valentine’s Day, the potential for profits becomes clear. Since being single crosses all social-economic status barriers from the poor to the elite, it stands as the perfect event to nationally commercialize in an attempt to blanket the market. It is an opportunity for Chinese brands, Wholesale Chinese Manufacturers, and even service providers to attract attention from every level of society. Some would call it the perfect storm for e-commerce to leverage.
Market Researchers Expect Online e-Commerce Sales To Surpass 50% of All Retail Sales In China This 2021
Corona virus has been one of the leading factors behind why e-commerce sales have jumped to sky-high numbers. The increased isolation, loneliness, and store closures have forced shoppers to resort to ordering more and more items online. While Double 11 has always been an online shopping festival since 2009, the recent pandemic caused a surge in online sales unlike anything seen before.
Between the recent pandemic, more brands developing an online presence, and advances in technology that reduce shipping & logistics costs, market researchers expect e-commerce to surpass 50% of all retail sales in the country. Chinese wholesalers, brands, and manufacturers no longer have to rely on foreign markets. By concentrating on the domestic market, Chinese brands have seen significant growth in revenue, specifically from e-commerce.
In South Korea, e-commerce makes up 30% of retail sales. The United States lags far behind with only 15%. Experts estimate that the worldwide average of e-commerce for western economies is around 13% of all retail sales. You can see why when China experienced 45% in 2020 and is expected to reach 52% this year, it becomes a big deal.
American Brands Now Seeking To Capitalize On Double 11 and the Chinese Market
With the incredible potential for profits on the table, American brands are now vying for a position in the Chinese market. This year, Double 11 is expected to showcase more than just Chinese brands, but also American brands like Nuria Beauty among others. But how can American brands compete against Chinese wholesale resellers and manufacturers? The truth is that they simply can’t. Websites like Made-In-China.com have opened the door to American brands, however the fact remains that around 95% of sellers on the platform are Chinese manufacturers, resellers, and other agents based in China.
Still, this year Double 11 is expected to showcase a number of American Brands for Chinese consumers. Brands like Bissel, AMES, and others have uncovered that live-streaming product demonstrations are a big way to attract the Chinese market. With help from other consultants and e-commerce experts, American brands are becoming more and more popular in the domestic Chinese market.
Resellers of Wholesale Chinese Products Can Learn a lot from Double 11 Sales Data
As we have already discussed, it is not only Chinese brands that are capitalizing on Double 11 sales. Many resellers of wholesale Chinese products and foreign markets can leverage sales data to learn what up-and-coming products are hot on the market. This is valuable information to help resellers understand what brands and products do better than others. Inevitably, those products that become hot sellers in China initially will do well in other foreign markets around the globe.
The wealth of information that stands to be learned from the amazing success stories that Double 11 brings is enough to help brands and companies reach that coveted “unicorn” status. In 2020, Double 11 sales exceeded 116 billion USD, with over 9 billion products sold. Within that data are undoubtedly patterns of products, demographics, buyer personas, and general information that can help any brand make an educated guess about which products specific buyers are interested in.
For example, in 2020, 100 million Yuan (15.6 million USD) worth of smart home products was sold on the first day. 1.3 million Yuan of those smart home devices sold in the first hour. Leveraging the data on which segment of the country purchased products from which wholesale Chinese manufacturers is very powerful information that could help brands, Chinese resellers, and others make smart decisions to gain a share of the market. In this way, Double 11 benefits the world with more than just amazing sales figures, but also invaluable information.
Let’s Take A Look At Some Brands and Their Sales Figures From 2020’s Double 11
Total Double 11 Sales In 2020 were 116 Billion USD, Here Are Some of The Prominent Brands That Did Well:
Lenovo sold over 1.3 billion Yuan during the first hour of Nov 1st
Xiaomi sold over 1 billion Yuan in the first 20 minutes of Nov 1st
Together, Apple, Nike, Huawei, Estee Lauder, L’Oreal, Xiaomi, Midea, and Lancome sold over 15 million USD in sales.
We have entered a period of e-commerce growth known as The Shoppertainment Phenomenon. This can be best explained by the combination of a shopping experience with entertainment in the form of live streaming product demonstrations, events, and even special performances. Combining entertaining videos with the shopping experience in a live setting has helped create an entire economy around live sales events around the world. This phenomenon is one worth paying attention to. Approximately 6 Billion USD of all sales in 2020’s Double 11 were made during some form of live stream presentation.
2019 marked a significant time when live streaming started to gain traction in e-commerce. As COVID-19 restrictions came about, more and more brands and resellers of wholesale Chinese products began to leverage live streaming to gain a larger share of the market. It helps to think of this activity as, “where the Home Shopping Network meets Social Media”. Having the demonstration capabilities of the Home Shopping Network combined with the interactivity of Social Media makes the Shoppertainment Phenomenon a force to be reckoned with.
Turning Live Streaming Into Live Commerce
Giving shoppers the ability to purchase directly from a live stream without ever leaving the live stream is one of the reasons why it has been so successful during Double 11. This feature gives shoppers the ability to live chat with brands and their representatives while checking out at the same time. That ability makes an incredible transformation from static e-commerce experiences to an immersive channel that shoppers enjoy. It is currently estimated that live commerce has penetrated about 10% of the overall e-commerce market.
For wholesale Chinese manufactures, suppliers and resellers, this delivers a new opportunity to tap into a channel with the potential for amazing growth. In fact, about 40% of consumers worldwide have admitted to actively participating, and purchasing something during a live commerce event. With 40% of the global consumer markets already educated on what live commerce is, it makes it easy for brands to get on board.
As more and more consumers take part of the Double 11 experience, it is fast becoming not just an online shopping experience, but a universal shopping experience in general. Younger and younger audiences are now both participating in Double 11 online and offline. Stores, brands and shopping centers have now begun offering Double 11 offers outside of the internet. This marks a significant moment that shows us how popular Double 11 is becoming.
How Will You Participate In This Year’s Double 11?
With Double 11 becoming more and more popular outside of China, how will you participate? This year’s Double 11 will be a very special one for wholesale Chinese suppliers, manufacturers, resellers, buyers, and everyone else. Whether you participate online, offline, as a buyer, or a seller, one thing is for certain, you will be playing your part in history. Although Double 11 is not officially recognized as a public holiday by the Chinese government, it has already become the largest shopping festival in the world, both online and offline.
Even though the term, “Double 11”, has been trademarked, the day has become a part of the global conscious. Known as the world’s anti-valentine’s day, Singles day is one where we all can participate. Singles day has become so much of a success; it no longer lasts for just 24 hours. From November 1st to November 12th this 2021, you can take part in finding some of the best deals, or earn some much-needed revenue as a seller. Either way, you are sure to make the most of the day.
Connecting China with the Rest of the World
As the world’s largest online shopping day, China has found yet another way to dominate the e-commerce landscape. This is your opportunity to take advantage of a moment that can bring both exponential growths for your business and exponential savings as a consumer. Either way, it’s a win-win. Check out websites like Made-In-China.com to find wholesale Chinese suppliers and incredible deals this Double 11 2021.