Thursday 28 Mar 2024
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The panellists in deep discussion (from 2nd left): Chris Tung, Alvin Liu, Jessica Liu and James Zhao (senior director of Alibaba's logistics division)

At Alibaba Group Holding's 11.11 Global Shopping Festival this year, 250,000 brands from all over the world will leverage its digital platform to sell their wares to an estimated 800 million Chinese consumers in a 24-hour period.

The annual 11.11 shopping blitz, which has been a huge hit in the past 12 years, will see things done differently this year as an all-new sales window has been added from Nov 1 to 3, ahead of the main event on Nov 11 (Singles' Day).

At a press conference for Asia-Pacific media in Hangzhou, China, last week, Alibaba's chief marketing officer Chris Tung said expanding the window from a single day to two sales windows would allow merchants, specifically new brands and small businesses, the opportunity to showcase their products and promote their brands.

He noted that the 11.11 Global Shopping Festival is the "single biggest growth driver" for many global brands and businesses using Alibaba's platform. Premium luxury brands joining the festival for the first time this year include Prada, Cartier, Montblanc, Piaget, Balenciaga and Chloé.

China boasts one of the biggest consumer markets in the world, and the 11.11 festival on Alibaba's Taobao and Tmall platforms will see more than two million new products and 250,000 brands, including more than 2,600 new overseas brands, getting a crack at China's gargantuan digital market.

According to the Harvard Business Review, Alibaba's sales at last year's 11.11 event totalled RMB268.4 billion (US$38.4 billion).

The Covid-19 pandemic has seen a shift in consumer mindsets and priorities and consumers are increasingly receptive to shopping from their homes, which makes this year's 11.11 festival the most important one yet as shopping online is more a necessity than just a reason for retail therapy.

Tung, in addressing how Covid-19 affects consumers, said there is a shift in consumers' lifestyles as they are staying at home, making digital transformation and online shopping extremely important.

"Thanks to the infrastructure of e-commerce, we are able to enjoy the benefits and convenience of online shopping. This pandemic has changed how people shop, work with colleagues and spend time with family. It has made digital transformation and online shopping essential."

Speaking at the press conference, Jessica Liu, co-president and regional head of commercial for Lazada Group, said the Southeast Asian market is one of the fastest-growing online consumer markets in the world.

Alvin Liu, president, Tmall Import and Export, also espoused the notion that international brands need not have a physical presence in China to break into the market, noting that with changes in consumer shopping behaviour, these brands would also not have to worry about logistics and payment infrastructure as Alibaba has that in place.

"With more people shopping digitally, this provides a perfect opportunity for brands to enter the China market using digital means. Before, brands always thought you needed to have a physical presence in China. But we already have the logistics and payment infrastructure in place, meaning brands just need to focus on how to target their audience and work with Alibaba to present the right brand image when entering the market," said Liu at a question and answer session during the press conference in Hangzhou.

He said during the pandemic, Tmall saw growth in three main consumer categories: health products such as supplements; beauty-related products such as facial beauty machines; and home and living items such as kitchen appliances.

The emerging Southeast Asian market

Jessica Liu, co-president and regional head of commercial for the Lazada Group, introducing the firm's 11.11 highlights this year

Online shopping has become increasingly popular, especially in the light of the pandemic. Lazada's Liu said this major shift in shopping behaviour in the region also led the company to adjust to consumers' needs.

"During the Covid-19 pandemic, we saw that demand for product categories change significantly, with office essentials becoming a staple buy. This is one product category that we have made sure to stock up on in our inventory in the lead-up to our 11.11 rollout."

Liu noted that more than 350,000 sellers and brands across the region will be participating in Lazada's 11.11 rollout. To prepare for the large volume of deliveries, the company has more than 40,000 warehouses and logistics staff to support about 20 times the volume of regular deliveries from domestic and cross-border sales, she added.

More innovations and features at 11.11 festival

Apart from a double shopping window, Alibaba is rolling out new innovations and features for the festival, such as bigger promotions and the inclusion of Alipay's digital lifestyle platform to match rapidly shifting consumer trends.

Alipay's platform will gather nearly two million local service providers spotlighting promotions in more than 100 cities.

Offline small and micro-merchants in China, such as grocery stores, street stalls and mom-and-pop shops, will not be left behind as the Alipay platform will be available for them.

Big-ticket items such as cars and houses are also on offer on the platform for the first time to better cater to Gen-Z.

Livestreaming during the sale will take centre stage this year, with 60% of the Taobao Live sessions to be conducted by merchants themselves. A total of 300 celebrities and artistes will be participating in the livestreaming sessions.

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