Bigger Than Black Friday, Alibaba's Singles Day Faces Fatigue in China
November 10 2017 - 6:05AM
Dow Jones News
By Liza Lin
Millions of Chinese consumers will be glued to their smartphones
Saturday, buying shoes, clothes, cosmetics and more in an annual
shopping extravaganza known as Singles Day.
Yujing Liu won't be one of them.
"Singles Day really turns me off," says Ms. Liu, a professional
translator in Beijing.
The 26-year-old has been bombarded in recent weeks with text
messages on her phone and pop-up ads on her computer screen
imploring her to place advance orders. "There is too much
advertising, and deliveries are slow, " she says. "If there's
anything I need, I make sure I buy it two to three weeks before the
day."
Singles Day, which derives its name from the date Nov. 11, or
11/11, was originally conceived as a day for China's legions of
unmarried young adults to celebrate their lack of attachments.
The day was unremarkable until 2009, when e-commerce giant
Alibaba Group Holding Ltd. turned Singles Day into an online
shopping event. It has since become the marquee event for the
Chinese retail platform and a hallmark of the country's shopping
calendar, setting new sales records each year. Last year, Alibaba
said sales hit $17.8 billion, topping the $12.8 billion American
consumers spent on the four days after Thanksgiving.
To reach new records each year, Alibaba has had to add new
incentives, including pushing preorders, marketing games and
creating fresh promotions.
But almost a decade in, Singles Day is starting to lose its
cachet, according to a survey by marketing data firm AdMaster. Less
than 65% of the consumers polled said they would participate in
this year's Singles Day, versus 84% in 2015.
One reason: With everyone rushing to buy, deliveries after
Singles Day can be slow, the survey found. Competing shopping
festivals, including rival JD.com Inc.'s 18-day promotion in June,
have also dimmed its appeal.
"Double 11 used to be special," says James Bay, managing partner
of marketing and branding agency Possible, in Shanghai. "But if
everyday is Christmas, then there is no value to December
25th."
An Alibaba spokesperson said the company has "record engagement"
for Singles Day this year among shoppers and merchants, and its
efforts to blend online shopping with physical stores are a driving
factor.
Even so, Alibaba Chief Executive Daniel Zhang Alibaba
acknowledged last week that the company needs to keep experimenting
with retail technologies to meet customer needs.
The tech company is setting up pop-up shops in malls this year,
allowing customers to try on lipstick in virtual mirrors and then
order straight from a touch screen. Alibaba is also adding virtual
fitting rooms, where consumers can upload photos of themselves and
have clothing items superimposed on their picture.
Brands that sell on Alibaba's Tmall business-to-consumer site,
meanwhile, are involved in their own one-upmanship, offering
live-streaming celebrity endorsements and limited-edition products.
France's L'Oréal SA is testing new vending machines, selling
perfumes and moisturizers, in malls. Buyers scan a product's QR
code and pay with their mobile phone. MAC Cosmetics plans to launch
limited-edition makeup sets, sold exclusively on Tmall.
"The bar has definitely been raised for what you need to do to
attract consumers," said Joe Nora, marketing director at Export
Now, which helps brands including Victoria's Secret with their
China e-commerce strategy. "A static display ad is going to be
overlooked."
Alibaba will kick off Singles Day with a marathon stage show
Saturday in Shanghai, featuring singers Pharrell Williams and
Jessie J and tennis star Maria Sharapova. It will be telecast on
three Chinese television stations and live-streamed on Alibaba's
video service.
When the company reports its final tally at midnight, the U.S.
Securities and Exchange Commission will likely be among those
closely looking at the numbers.
Alibaba said in May 2016 the SEC was looking into the accounting
methods for its Singles Day figures. The exact nature of the probe
isn't clear, but critics have asserted that merchants selling on
Singles Day have inflated their sales figures.
Alibaba has said it is cooperating with the SEC.
Xiao Xiao contributed to this article.
(END) Dow Jones Newswires
November 10, 2017 05:50 ET (10:50 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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