A Win-Win Strategy For Eleven Pairs Of Carnival Luxury Brands

To be sure, the world will continue to see the globalization of singles day. But not all Western retailers can adapt to China.

In a few days, singles day is coming. You can also call it the 11.11 Shopping Festival, the most influential e-commerce day in the world. In 2017, the total value of goods sold on shopping day (GMV) reached $25 billion 300 million, while in 2018, Alibaba reported that its record sales exceeded 30 billion 800 million dollars in 24 hours. Basically, during the 11.11 Shopping Festival, Alibaba sold more than a year in many other countries / regions throughout the world.

In fact, the dependence on Chinese consumers alone can not keep up with the ambition of Alibaba global hegemony. The goal of Alibaba is to realize the total sales value of US $1 trillion in 2020, create 100 million employment opportunities and provide services to 2 billion customers, which can only be achieved by expanding its global business footprint.

According to reports, in 2017, Russia, Hongkong and the United States were the main markets for buying products other than mainland China during singles day, and their best-selling items included mobile phones, wool coats and knitted sweaters.

In 2018, 237 brands took part in the shopping festival, including apple, Dyson, Estee Lauder, Nestle, Nike and Adidas. International brands are always eager to "singles day" because they hope to attract the vast number of Chinese consumers and expand their business in the market full of opportunities. Over the past few years, the number of Western brands participating in this activity has been increasing.

As McKinsey has said, "singles day" has become a global multicultural affair since 2017, because "it provides a large number of discounts and vigorously promotes transnational shopping e-commerce."

In addition, Alibaba has stepped up its search for international strategic partners, and has established partnerships with overseas platforms or retailers, such as the international e-commerce group Lazada, Singapore's e-commerce platform Shopee, etc., and witnessed the global influence of singles day. It is not surprising that international brands and investors hope to win Chinese consumers through successful participation in the event. In view of this, brands who want to take part in this year's Carnival Carnival should take a good look at the following strategies.

　　 pricing strategy

Any activity is a most attractive selling point for consumers. Spike and panic buying are always the focus of consumers' attention. For consumers, the most powerful benefit is low price, which is a major factor leading to double eleven madness.

McKinsey points out that during the bachelor's day in 2018, the average discount for baby products was 33%, accounting for 18% to 19% of active sales, compared with 6% to 7% on weekdays. In addition, the average discount of skincare and beauty brands is 30%, increasing the share of their activities to 12 to 15%, while weekdays are usually 3-5%.

　　 Niche marketing

As we all know, if retailers do not understand the needs, motivations and psychological factors of consumers' purchase decisions, they can not affect consumers' behavior. Therefore, it is important to understand the importance of customers. Successful retailers "deliver the right products to the right place at the right time" to maintain brand loyalty. Successful brands often focus their attention on their niche consumers before they pursue a broader market.

　　 Population segmentation

Obviously, Alibaba won the Millennium generation and Z generation's favor through the singles day to conquer this huge young group. This year's double eleven party will bring together Tyler Swift (Taylor Swift), singer as a poet Hua Chenyu and Japanese actress Kana Hanazawa and other young artists. Obviously, the target group of Singles Day is young people.

China has more than 400 million of the Millennials. They provide a great opportunity for the brand. Naturally, Alibaba has a big bet in this market segment, and international brands should follow suit. In China. Equally important is the rise of the "She economy" and the increasing purchasing power of women, which will greatly promote the sale of cosmetics and skincare products.

　　 Strengthening mobile strategy

More than 80% of the "double eleven" sales are done on mobile devices. In today's world, retailers need to use modern technology and unique mobile capabilities to enhance the entire shopping experience. Instant messaging, interactive games, VR shopping experience, video marketing and digital storytelling need to be integrated into the consumer communication strategy.

To be sure, the world will continue to see the globalization of singles day. In addition, the Chinese market will continue to attract international brands to participate in this consumer carnival. But not all Western retailers can adapt to China. Therefore, we will inevitably see some brand failures, and make good use of these strategies, brand will be successful.