Chinese Singles Day

November 22 2016

Chinese Singles Day is an entertaining festival widespread among young Chinese people, to celebrate the fact they are proud of being single. The date, November 11th (11/11), is chosen because the number “1” represents an individual that is alone.  

The “Double 11” (November 11th) online shopping festival stems from the promotion, which was held by the one of the largest e-commerce companies, Alibaba’s sites Tmall, on 11th November 2009. Even though the participated businesses and promotion activities were limited at that time, the sales skyrocketed. Naturally this festival has gradually become one of the largest online shopping days in China and then spread over the world, with sales in Alibaba’s sites Tmall and Taobao at US $5.8 billion in 2013, US $9.3 billion in 2014, and over US $14.3 billion in 2015.

In the morning of 11.11.2016, Tmall Sales skyrocketed to 1 billion (RMB) in 52 seconds, reached 35.3 billion (RMB) in one hour which equals the total sales in 2013 Chinese Singles Day.

The first order was delivered, received and signed within 13 minutes.

Tmall total (global) sales tracking 

00:00:52: 1 billion RMB (AUD 192 million)
00:06:58: 10 billion RMB (AUD 1.92 billion)
01:00:00: 35.3 billion RMB (AUD 6.79 billion)
02:30:20: 50 billion RMB (AUD 9.62 billion)
15:19:13: 91.2 billion RMB (AUD 17.54 billion) (2015 Chinese Singles Day Total Sales)
24:00:00: 120.7 billion RMB (AUD 23.21 billion)

Below ispicture shows the sales record in Tmall at 2.30am on 11th November of 2016

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Source: Snapshot from T-mall’s online live video

Below picture shows the sales record in Tmall at 24:00:00 on 11th November of 2016

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Source: Snapshot from T-mall’s online live video

Wireless Terminal Transaction Amount is 81.87% percent of total sales.
Behind the total sales, there are 47 million end consumers purchased international brand products. There are 224 countries and regions using Alipay to settle the payment.
Under healthy product sector, Swisse wasis the no.1number one top seller with total sales 73.04 million RMB (AUD 14 million) on the day 11.11.2016 in Tmall.
Below is the best-selling product of Swisse.

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Source: Swisse Tmall Online Store

16,969 bottles have beenwas sold in November 2016a at price of 259 RMB with total sales 4.4 million RMB (AUD 843,000).
 
Commentary on 2016 Chinese singles day overall? Was it more successful than 2015? Is it increasing steadily? How can Aussie exporters/businesses leverage this holiday?

Business implication for Australia exporters/businesses

Chinese singles day is a well-known shopping in China nowadays. The total sales increased 30 percent this year by almost 5 billion Australia dollars despite the fact sales slowed down from the evening of the day. From the observation, there is strong trend that total sales increase steadily since 2011. More than 0.6 billion orders are to be delivered after Chinese Singles Day.

This is a unique and great opportunity for Australian exporters or businesses to expose their products to vast Chinese end consumers via a low cost and risk way – E-commerce. 

There are mainly three ways for Australian SME to start E-commerce
  • Direct purchase online platforms
  • Online retainers
  • Set up own account on E-commerce platforms

We don’t recommend Australian SME to setup their own account on E-commerce platforms as Chinese consumers require 24/7 customer service and take it seriously into account they evaluate their purchase experience and comment on the products in online stores. Those evaluation and comments heavily impact future sales as they are open and visible to all online customers who look at the product.

For any assistance with doing business with China, please contact China team of Australian Business Consulting and Solutions by ringing 1800 505 529 or email customerservice@exportgrowth.com.au