CHINA’S DOUBLE 11 SHOPPING FESTIVAL: HOW DOES IT WORK?
Celebrated on November 11, Singles’ Day (also called “Double Eleven”) has always been an index of China’s economic success. But how does 11.11 work for buyers and sellers?
Singles’ Day main incentives to consumers are:
1. Deposit Fee: up to 2 weeks before the promotion dates, consumers have the possibility to anticipate a fixed deposit for each order placed. This deposit is deducted to the total during the days in which the promotions take place, and its purpose is twofold: reserving the item chosen for the purchase, and giving access to a discount (usually greater than the deposit fee anticipated by the consumer);
2. Cross-shop discounts: fixed discounts that apply to the whole cart if the buyers reach a specific purchase target on different shops;
3. Shop discounts: each shop gives a discount based on the total value of products purchased;
4. Taobao Coupon: each purchase guarantees a coupon that consumers can spend in any shop participating to the promotions.
How does Singles’ Day look from the merchant’s perspective?
Participating to Singles’ Day is free and each shop can choose whether to participate or not. However, every platform that joins the world’s biggest shopping festival request merchants to fulfill some requirements. Tmall Global, for example, asks merchants to:
– agree to participate to all discount activities of the promotional period;
– cover extra logistics insurance fees for the consumers.
Merchants who decide to comply with these rules can candidate their shop to participate to the promotion, but the final decision is in the platforms’ hands. They have the power to decide who effectively will take part to the online event, based on the demand of certain products, but also on the lifespan of the shop, the renown of the brand, etc.