In the early 1990s, a group of university students at Nanjing University came up with the concept to celebrate Singles’ Day on November 11 (11.11), as 1 looks like a bare stick which is a Chinese slang for a single man. Since then it has gradually become an unofficial holiday to be celebrated. In 2009, Alibaba, which is one of the biggest e-commerce players in China, initiated a sales campaign tryout on Nov 11, and achieved an unexpected great result. Since then, it has become a ritual to host the Double 11 Shopping festival on November 11.
This year, with the negative impact from Covid-19 pandemic, doubts on the potential sales outcome this year had been raised by some analysts; however, the results speak for themselves and Alibaba achieved the record GMV (Gross Merchandise Volume) of RMB 498.2 billion (RMB/USD=0.15 as of November 19), and YoY of 26%. Alibaba’s major competitor JD.com also achieved the notable result of GMV of RMB 271.5 billion.
Apart from the record GMV, several other results are also worth mentioning. As of 24:00 November 11, 2020, 33 live-streaming rooms exceeded GMV of RMB 100M+ each on Alibaba, such as live-streaming room of Estee Lauder, Huawei, Lancôme, etc.; almost 500 live-streaming rooms achieved GMV of RMB 10M+ each. As well, the total Tmall logistics order volume exceeded 2.32 billion.
Last but not least, foreign brands have become a focus for both e-commerce giants Alibaba and JD.com. With the impact from the pandemic, travel to overseas became more than difficult. Traditionally, Chinese would also purchase many foreign products during their trip abroad as well; however, this year they could only rely on online sales channels. With the official stores on either Tmall or JD.com. the chance of getting fake products would be eliminated. This year, out of the 250,000 brands that participated the Double 11 Shopping Festival, 31,000 of them were from overseas.
With the uncertainty posed by the ongoing pandemic around the world, and China’s success on containing the pandemic, targeting consumers in the Chinese market has become more important than ever for many overseas’ brands’ survival and prosperity. NBH is a boutique agency with years’ experience in helping overseas brands to establish and further their brand presence in China, and NBH is here to cooperate with you, overseas brands with or without presence but the willingness to enter in China, to grow your China business together.