Introducing columns written by global members of Amorepacific
Singles' Day and Digitalization
WRITER
AP China Accounting Team Miley Li
I think that Singles' Day or Guanggun Jie on November 11 would be familiar to most global members. Singles' Day, otherwise known as China's Black Friday, is the largest shopping day in China, with various promotion events tempting consumers. Originally the day was for an entertaining festival for bachelors. However, it was Alibaba Group, China's biggest e-commerce company, that named the day as "Singles' Day" or Shuang Shiyi (双十一, meaning "Double 11") and formed an online shopping phenomenon for singles.
I first learned about the Single's Day in autumn 2009. Although I was not adventurous enough to go out for shopping on the very first Single's Day, I was nevertheless very impressed when I heard about the event. The next year, I made sure not to miss out on the shopping opportunities. Since then, I've always enjoyed the fun of shopping around this time of year.
Among the several major shopping seasons recently trending in China, including ,Shuang Shier (双十二 / December 12) and June 18, but I personally think that Singles' Day is the best time to purchase products at the cheapest price. Of course, people may doubt whether the price is really the lowest. And indeed, some unscrupulous sellers set price high in advance and apply discounts on the day to deceive customers. However, according to a seller on Tmall, whom I personally know, the system of Alibaba controls promotional prices during Singles' Day so that they are set at around 90% of the lowest price over the last three months. In other words, it's possible to trust the discounted price on Alibaba at least.
In 2009, the sales revenue of Tmall during Singles' Day was CNY 50 million. Revenue grew rapidly to CNY 936 million in 2010 and then to CNY 3.36 billion in 2011. In 2013, sales surpassed CNY 100 million only in the first 55 seconds and revenue exceeded CNY 100 billion last year.
Jack Ma, Executive Chairman of Alibaba Group
Such explosive sales performance is unprecedented in the history of online shopping. Are we witnessing the perfection of e-commerce? I believe online business can never completely replace offline channels. That is, we need to balance competing online and offline business demands, while responding to the changing trend for digitalization in order to establish an appropriate business environment in which to thrive amid changing market trends. Without a proper strategy for online business, a firm may follow the example of Shanghai's Pacific Department Store Huaihai Road branch, which folded at the end of this year due to poor sales performance.
Pacific Department Store
Online shopping has made Singles' Day a modern-day sales phenomenon and the most prominent example of modern shopping culture's trend towards greater digitalization. Digitalization is one of the most important business trends we need to get to grips with. In that sense, I'm very much looking forward to observing how the shopping behavior on Singles' Day develops in the future. It will be especially interesting to see whether the festival will influence the overall shopping culture of China and how firms will make it balance with their offline businesses. Just as Alibaba Group stimulated singles' shopping desire and cultivated a new online shopping trend using the number "1" in such an amusing way, I hope the group can create another innovative business phenomenon.