Future Tech China: Singles' Day Is No Longer About Discounts, It’s About Entertainment
Plus: An e-commerce gala roundup, Richemont hits the gas, and new trends in competition reality shows.
The Content Commerce Insider newsletter highlights how brands create content to drive revenue. If you have received our newsletter from a friend or colleague, we hope you will subscribe as well and follow us on LinkedIn and Instagram.
When I was younger, shopping was an activity you did with your friends. We'd designate a time in our busy adolescent schedules and hit the (offline) shops. In China, it's still called "social" because most shopping conversations happen over WeChat. But it’s also not — shopping in China has become a form of personal entertainment, social to the extent that you'd call watching a movie with friends social.
Shopping Marketed as Fun
Shopping wasn’t always so enjoyable, and it wasn't even a thing for most of history. I digress, but the general populace didn't really have enough expendable income for consumerism to be equated with leisure, at least not until the rise of the advertising industry and the development of shopping malls in the 1950s. China went through its own consumer revolution, but compressed: most goods were still necessities through most of the early 2000s, and this only changed in the 2010s.
So, instead of America’s “mad men” of half a century ago, China had Alibaba. Jack Ma said, "Let there be shoppable entertainment,” and there was shoppable entertainment. In China, more than anywhere else, consumption has been rebranded into a content-driven experience.
Singles’ Day (also known as Double Eleven) is not Black Friday or Cyber Monday. Why's that? Because it is not just one day of sales, it's a weeks-long shopping festival, with the emphasis on festival. It's an online retail Disneyland on steroids.
E-commerce Disneyland
Alibaba's Singles’ Day festivities for the apex of November 11 kick off with a four-hour Tmall gala on the evening of November 10 featuring celebrities both domestic and international. This year’s event took place at the Mercedes-Benz Arena in Shanghai, with Katy Perry appearing from the U.S. as the biggest global star in the lineup. Taylor Swift, who was last year’s big draw, took a turn at e-commerce livestreaming to promote limited-edition fan merchandise sold by Viya, China’s top-selling e-commerce host.
Alibaba has a history of planning massive galas in the style of CCTV’s Lunar New Year show, which is the world’s most-watched TV broadcast. Previous Singles’ Day extravaganzas have featured Mariah Carey, Miranda Kerr, Daniel Craig, and Pharrell Williams, along with the top names in Chinese entertainment (check out Pharrell singing "Double Eleven Day" with Chinese megastar Kris Wu below under “Resources”).
To a non-Chinese audience, it's pretty cringy, but it speaks volumes about Alibaba's budget for splashy entertainment, and competitors have had to ramp up their offerings to stay in the game. Aside from Tmall’s big show, around 400 corporate executives (including senior executives from McKinsey, WPP, and Gartner) and 300 celebrities participated in e-commerce livestreaming sessions via Taobao Live this year, and Alibaba's DAMO research institute is also using artificial intelligence to create the first virtual e-commerce livestreaming host, much in the vein of iQiyi's “Dimension Nova” virtual idol competition, which will choose a winner that can serve as a triple threat entertainer, influencer, and brand ambassador.
Alibaba’s Bet on Retailtainment
But Singles Day isn't the only time Alibaba is set on mixing retail with entertainment, as the tech giant is uniquely positioned for integration thanks to its ownership of video streamer Youku and studio Alibaba Pictures. Content on its e-commerce platforms easily lures users into its entertaining short video selection. And when it's not trying to buoy users with traditional entertainment, it uses mini-games. This year the focus was on mini-games involving raising cats and upgrading trains. Last year's game had users building skyscrapers by scrolling through lists of products. Most of these types of games require players to open the app daily and share the game with friends.
But in the end, it isn’t about sharing with friends that much. Tencent’s WeChat owns social, and Alibaba knows this. Discounts are not the only winning strategy for Singles’ Day, especially for premium brands. It’s not about the lowest prices anymore or social. Discounts don’t amount to much anymore, nor do the “social benefits.” With its games, offline concerts, and more, Alibaba is honing in on one thing: entertainment.
If you haven’t already, subscribe to the Content Commerce Insider newsletter to see our upcoming videos on Taobao's retail entertainment strategy.
Resources:
Taylor Swift’s message to fellow livestreamer Viya and Chinese users for Singles’ day, YouTube
Watch Pharrell Sing an Awkward Song in Honor of Chinese E-commerce, Ad Age
I spent weeks playing games on Taobao and won $1.55, TechNode
“We will rock you” becomes “we will serve you” during Alibaba’s 2020 gala, RADII Twitter
Alibaba’s Entertainment-Fueled E-commerce and the Future of Marketing, Content Commerce Insider
- by Tanya Van Gastel
Mentioned in today’s newsletter: Alibaba, Bestune, Chando, Douyin, Farfetch, Gartner, iQiyi, JD.com, La Mer, LVMH, McKinsey & Co., Mercedes-Benz, Net-a-Porter, Nintendo, Patek Philippe, Pinduoduo, Richemont, Samsung, Suning, Tmall, WPP, Youku.
E-commerce Galas Rule the Airwaves for Singles’ Day
by Ginger Ooi
After three weeks of frenzied marketing campaigns in the run-up to this year’s Singles’ Day on November 11, the festivities reached their apex with all of China’s major e-commerce platforms hosting competing televised evening gala shows on November 10, a shift from last year, when just market leader Tmall and Suning faced off at the same time. Below, CCI takes a closer look at how each of the big players fared on the big night.
Tmall
This year, Alibaba’s Tmall introduced an additional key sales period running from November 1 to 3, which was kicked off by a star-studded show on October 31 that was integrated with simultaneous e-commerce livestreaming sessions via Taobao Live. This gave fans a chance to watch big (televisions) and small (mobile phones) at once, with top celebrities such as actress Guli Nazha performing on the main stage and later appearing at C-beauty brand Chando’s livestreaming studio to promote its products.
Meanwhile, the main extravaganza — the “Double 11 Carnival Night” (天猫双11狂欢夜) on November 11 saw more than 72 topics trending on Weibo’s search list and 21 topics on Douyin’s. Tmall spokesperson Jackson Yee’s performance was one of the most talked-about of the night as he served as both the opening and closing acts. Popular idol Lay Zhang was another fan favorite, bringing a fusion of traditional Chinese and hip-hop cultures onto the stage. Katy Perry was the big global act this year, appearing via livestream from the United States.
Tmall conducted 19 rounds of surprise one yuan ($0.15) deals during the night along with other benefits such as 10 million red envelopes and 11 “Miao King” prizes that awarded winners with a full home makeover from the Alibaba-backed furniture company Red Star Macalline. Airing on both Zhejiang Satellite TV and Dragon TV, the Tmall show’s combined ratings topped all the other contenders on TV.
Tmall’s early-bird promotions helped it hit some big record-breaking numbers — more than RMB 372 billion ($56.2 billion) between November 1 and the start of November 11, with more than 300 brands exceeding turnover exceeding the RMB 100 million ($15 million) mark by then. By the end of November 11, Alibaba reported more than RMB 498 billion ($74 billion) in gross merchandise volume (GMV), nearly twice its 2019 total.
Pinduoduo
Discount-oriented Pinduoduo partnered with Hunan Satellite TV for the “11.11 Super Pin Night” (拼多多11·11超拼夜) and the big draw of the show was the low prices offered for premium products such as Apple iPhones, Nintendo Switches and skincare from La Mer. Pinduoduo also offered RMB 1 billion ($150 million) in cash giveaways to viewers through red envelopes (hongbao) and sold 1,000 units of the iPhone 12 for just RMB 9.9 ($1.50), drawing more than 12 million viewers. Some described it as the most “expensive” live broadcast amongst the competing shows thanks to the heavily subsidized prices on products in leading categories such as mobile phones, consumer electronics, home appliances, and beauty products.
Along with performances from singers such as Kris Wu, Chen Linong, and Zhang Shaohan, celebrities also appeared on livestreams sharing personal tips and advice on topics such as skincare and diet, encouraging consumers to purchase the products mentioned.
JD.com
JD.com’s “Live Super Night” (京东11.11直播超级夜) aired on Jiangsu Satellite TV, iQiyi and JD Live and starred Cai Xukun as the opening act, with his performance surging on the trending search lists of Weibo, Douyin, and other social media platforms. The show also included more than 50 other celebrity guests such as girl group The9, Xue Zhiqian, and Wang Yuan.
The online retailer also produced a special showcase called “Everyone Has Something in the World” (世间没有一无所有的人) to raise awareness for those who are helping the poor and farmers. The evening gala show ended with Lu Yichun’s cheerful performance as the live broadcast room filled with excitement.
JD.com benefited from its partnership with iQiyi, which handled the production, offering the high-quality programming for which the video streamer has become known, and creating synergy between their online and offline entertainment resources and encouraging “multiscreen interaction” so that audiences could watch and shop at the same time across devices. JD.com’s Singles’ Day sales from November 1 to 11 reached RMB 271.5 billion ($41 billion), up more than 40% from last year.
Suning
With 200 million red envelopes, 50,000 nearly-free products and three generations of celebrities lighting up the stage, retailer Suning’s “Double 11 Super Show” (双十一超级秀) on Beijing TV came in second only to Tmall’s show in drawing viewers. Highlights included Wang Ziyi and Zheng Shuang reuniting to perform “The Summer Palace” (based on their recent starring roles on a reality series), three songs by Huang Zitao, and a nostalgic turn by Cai Guoqing.
A total of 50,000 items were offered for just one yuan ($0.15) during the course of the broadcast, including five Bestune cars and 1,111 each of Samsung mobile phones, gold bars, smart vacuum robots, and electric hotpots. The retailer also gave away 100 Suning smart cars to viewers who managed to collect all seven “double 11” cards.
To Compete With LVMH in China, Richemont Needs to Up Its Content-Commerce Game
by Avery Booker
Like rival LVMH, Swiss luxury conglomerate Richemont surely knows that a “revenge spending” bump won’t be enough to keep profits up and offset a sluggish recovery in Europe and North America. To that end, Richemont recently signaled that it plans to move aggressively to get in front of the right consumers in China via a joint $1.1 billion investment with Alibaba in online luxury fashion retailer Farfetch, which will see the launch of a new “Farfetch China” online marketplace.
According to Reuters, in addition to its investment in Farfetch China, Alibaba announced this week that it would also launch dedicated Farfetch shopping channels on its Tmall Luxury Pavilion, Luxury Soho online outlet, and cross-border marketplace Tmall Global. For its part, following the news from Alibaba and Richemont, Farfetch said that it will end its strategic partnership with JD.com, which began in 2017 with a $397 million investment in Farfetch by the Tmall rival.
The Alibaba/Richemont partnership looks to be aimed at creating something of a luxury bubble within the Alibaba ecosystem, in which high-end brands can leverage Alibaba’s ability to reach 757 million Chinese consumers using Farfetch as their multi-brand online “store,” while shoppers can seek out luxury brands via Farfetch or using Net-a-Porter’s Tmall Luxury Pavilion storefront.
Read the full article at Content Commerce Insider
Brand Film Pick: Netease Takes a Contrarian View on Singles’ Day Consumerism
Although better known for its gaming, music, and online education divisions, the OG Chinese internet company Netease (founded in 1997) made headlines last week when it announced that its private-label e-commerce platform, Yanxuan, would be opting out of participating in this year’s Singles’ Day. Although originated by Alibaba as a one-day sale in 2009, the promotional blitz now involves just about every major online retailer and stretches for several weeks leading up to the big November 11 date, with increasingly diverse and complex efforts to keep consumers engaged and spending.
In its statement, Netease said that Singles’ Day now promotes excessive consumption and overemphasizes short-term results, while promising to offer greater year-round discounts via Yanxuan, along with guaranteed low prices for certain products. And to accompany its words, the company also produced a short video targeting young women around the pressure to conform to branded narratives about the necessity of certain types of consumption, referencing legendary advertising sentiments such as, “You never actually own a Patek Philippe. You merely look after it for the next generation,” and Adidas’s “Impossible is nothing.”
Rather than falling for marketing hype, Netease encourages viewers to focus on their individuality and the life experiences that can enhance a fulfilling existence, overturning the brand slogans in the process: “It’s not the sneakers on my feet that make impossible possible, it’s the path underneath my feet.” The protagonist, who starts out indistinguishable from an army of similarly clad, status-conscious women, ultimately finds freedom through her experiences rather than possessions.
Some of the top trends from Singles’ Day 2020:
New sales records indicate more than just the healthy consumer recovery, but also the expansion of Singles’ Day into more dates, more brands, and more products.
While already a big deal in 2019, livestreaming took center stage as a sales channel this year and was seamlessly integrated with TV entertainment.
Beyond online shopping, Singles’ Day promotions increasingly sought to bridge the gap between online and offline consumption. Alipay’s “Urban Life Festival” promoted deals from 2 million businesses across Alibaba platforms such as Ele.me, Fliggy and others, spanning a range of services from dining to travel to health care, while JD.com had offerings from more than 3 million stores across China.
To encourage discovery in shopping, platforms relied heavily on gamification (such as Tmall’s cat-raising game) and other novelties such as celebrities, IP collaborations, popular reality shows, and blind boxes.
Participation increased from sectors that are not traditionally a part of the e-commerce universe, such as real estate and home improvement, helped by 3D virtual technology.
“One yuan” (15 cents) was the price to beat this year (with free shipping), as the major e-commerce platforms fought to see who could practically give away the most products.
At the other end of the spectrum, global luxury brands made a bigger showing this year than ever before, and high-end sales in categories such as property and automobiles also saw greater interest from consumers.
What’s in store for China’s hugely popular idol competition reality shows in 2021? Over the past few years, the format has undergone numerous developments, often driven by leading video streaming platforms, from young trainees stepping into the spotlight for the first time to established celebrities taking a turn at career revival, according to Chinese-language publication Entertainment Capital.
Not surprisingly, Mango TV will renew its breakout hit of the summer, “Sisters Who Make Waves” (乘风破浪的姐姐) for a second season along with a hotly anticipated male version called “Overwhelming Brothers” (披荆斩棘的哥哥) following the same model: 30 celebrities over the age of 30 will compete to become the top finalists that will form a musical group.
Youku appears to be piggybacking on this trend with plans for its own over-30 show called “Unbelievable! My Brother” (不服啊!我的哥), and has another competition show, “Asia’s Super Idol Group” (亚洲超星团), in the works.
Meanwhile, iQiyi will produce a third season of its popular show “Youth With You” (青春有你) along with a new series, “Explosive Stage” (爆裂舞台) that will feature musicians and music labels competing with original music and confirmed celebrity appearances from singer Meng Meiqi and rapper Lexie Liu.
Tencent Video’s major new release the celebrity-focused competition “Waiting 800” (候场800), while two of its previous idol shows return for their fifth seasons: “Chuang” (创造营) will be back as “Chuang 2021” with an all-male cast vying for a spot in a new boy band, while “The Coming One: Youth Folk Season” (明日之子5少年民谣季) aims to move beyond basic pop to focus on storytelling via music.
News in English
Despite breaking sales records again, China’s big e-commerce players saw their share prices take a hit following the government’s release of draft rules that would target anti-competitive behavior by tech firms. CNBC
In addition to its big gala show on Beijing TV, retailer Suning partnered with game streaming platform Huya for an “esports night” with $15 million worth of giveaways, discounts, and vouchers. Dao Insights
Balenciaga and Prada were among the global luxury brands launching major Singles’ Day campaigns this year for the first time, marking a continued shift to digital in marketing to Chinese consumers. SCMP
A look at how Tencent’s fintech operations compare to the Alibaba-affiliated Ant Group’s, from user numbers to product offerings such as microloans and wealth management. Techcrunch
Huawei plans to sell its Honor smartphone brand to a consortium led by mobile phone distributor Digital China and the government of Shenzhen, where the tech giant is based. Reuters
The future as depicted through images of high-tech products on display at the recently concluded China International Import Expo. Sixth Tone
An in-depth analysis of what is driving Chinese consumers in the post-Covid era. McKinsey & Company
We’ve Got China Covered
China Film Insider: China’s Short Video Apps Urged to Crack Down on Unauthorized Music
Jing Daily: JD.com’s Kevin Jiang on Luxury Going Omnichannel
Jing Culture & Commerce: Livestreaming Tips From Europe’s Cultural Influencers