Subsidies and Discounts: China's 11.11 Shopping Extravaganza Expands Scope
This year, the Double 11 shopping season kicked off 10 days earlier than in previous years, with significant domestic e-commerce platforms like Taobao, Tmall (part of Alibaba), and JD.com rolling out their promotional activities.
The festival runs from October 8 to November 11, providing consumers more time to make purchases, allowing merchants to fully prepare for the sales, and alleviating pressure on logistics providers.
Monday is the final and most critical day of the shopping event, with transaction results set to be announced on Tuesday. Industry insiders indicate that this extended edition of the Double 11 festival highlights intensified competition in the e-commerce sector and a shifting consumer landscape in China.
Key highlights and changes shaping this year's shopping season are as follows:
**Up to 20% discount on home appliances and computers**
Sales of home appliances and computers have seen significant growth compared to the previous year. This surge is attributed to China's trade-in program, government subsidies, and various vouchers and discounts from e-commerce platforms. Consumers can benefit from discounts of up to 20 percent on a wide array of products across multiple platforms. Tmall reported an 18-fold increase in refrigerator sales on October 14 compared to the same pre-sale period last year.
**'Emotional fulfilment' valued**
This year has seen a rise in demand for products that provide "emotional fulfilment." The luxury soft toy brand Jellycat made an impact when its Tmall flagship store achieved a one-minute turnover on October 21 that surpassed the total sales from the first day of last year. Within two hours, sales jumped 230 percent year-on-year.
Sales of pet products are also experiencing a year-on-year doubling. In the first hour of this year's festival, 15 pet brands reported sales exceeding 10 million yuan.
**Hardcore tech products join**
A diverse range of domestically-developed advanced technologies and high-ticket industrial products, such as civilian airships and proton therapy systems, have entered this year's Double 11. These offerings illustrate China's commitment to fostering innovation and integrating sophisticated technology into consumer markets, marking significant progress in making high-tech solutions more accessible to the public.
The AS700 Xiangyun airship, developed by the Special Vehicle Research Institute under the Aviation Industry Corp of China, is priced at 24.99 million yuan, with a reduction of 2 million yuan during the Double 11 shopping festival. Two customers have placed deposits to purchase the AS700 Xiangyun airship through taobao.com, with one sale already completed.
Experts view this as a move toward broader acceptance and commercialization of cutting-edge technology products.
**'Free shipping' spreads overseas**
Countries such as Singapore, Malaysia, Thailand, Japan, South Korea, Vietnam, and Cambodia have joined Taobao and Tmall's overseas "free shipping zone." Consumers can access free shipping benefits by placing orders over a specific amount. The product offerings span a variety of categories including clothing, 3C digital items, maternal products, toys, sports and outdoor products, and home appliances. JD Global Sales has introduced two new free shipping sites in Malaysia and Thailand.
During the initial phase of Tmall's "Double Eleven" sales, nearly 70,000 merchants participating in its overseas growth strategy experienced doubled transactions.
Industry experts suggest that the expansion of overseas "free shipping" reflects a notable enhancement in China's e-commerce capabilities regarding global operations, logistics and distribution systems, and payment solutions.
**E-commerce rivals join hands**
Additionally, Chinese e-commerce giants are teaming up to explore mutually beneficial opportunities. JD Logistics is collaborating with Taobao for Double 11, while Taobao and Tmall are planning to integrate WeChat Pay to enhance the shopping experience. Concurrently, platforms are incorporating artificial intelligence tools to boost vendors' operational efficiency.
The Double 11 Shopping Festival was first initiated in 2009 by Taobao under the Alibaba Group to promote online shopping. Now in its 16th year, optimism remains high despite increasing competition, with substantial promotions and simplified discount rules continuing to attract consumers.
Sanya Singh for TROIB News