When the Singles Day shopping event launched on November 11 in 2009, it was just a 24-hour promotional stunt. But its rapid evolution over the past 16 years has seen it stretch into a nearly four-week extravaganza and become the world’s biggest online shopping gala. In the past, smashing records for gross merchandise volume (GMV) through discount-led sales had come to characterize the promotional campaign. However, chasing high GMV is no longer the focus of Singles Day, or the Double Eleven shopping spree. Major e-commerce platforms are shifting toward a technology-driven high-quality growth model that places emphasis on the improvement of efficiency and experience. This year’s promotional gala has witnessed the large-scale adoption of artificial intelligence technology to improve merchants’ operational efficiency, offer shoppers personalized recommendations, and bolster the sales of products, industry experts said. They highlighted the significant role of the shopping carnival in unleashing domestic demand potential and promoting the recovery of the consumer market, given that boosting consumption is a top priority for China’s economic growth this year.
Online retailers have extended the promotional period and stepped up efforts to provide discounts and shopping subsidies this year, while simplifying promotion methods, with direct price cuts the preferred strategy to attract price-conscious consumers. Data from Tmall, Alibaba Group’s business-to-customer platform, showed that in the first hour after the shopping carnival kicked off at 8 pm. on October 20, sales by 80 brands surpassed CNY100 million. Within the first hour, the turnover of more than 30,000 brands doubled year-on-year, while the sales of over 18,000 brands exceeded those of the entire day last year. According to JD, another major e-commerce player, as of 11:59 pm. on November 11 the number of users placing orders grew by 40% year-on-year, and the order volume increased by nearly 60% on a yearly basis.
Consumer electronic products witnessed robust growth in sales. The turnover of AI-enabled tablets and large-screen smartphones via JD’s online marketplaces surged by 200% and 150% year-on-year, respectively. The sales of AI glasses and AI speakers doubled year-on-year, while the transaction volume of home appliances and furniture soared by 150% from a year earlier. In addition, outdoor sporting goods, beauty and skin care products, apparel and trendy toys have gained popularity among Chinese consumers. Liu Bo, President of Tmall, said this year’s promotional campaign presents the most significant opportunity for brands throughout the year, and “its role in driving brands’ business growth is irreplaceable and increasingly vital”. Liu highlighted the importance of the convergence of AI and consumption, saying the company is doubling down on AI and aims to help merchants improve product quality and operational efficiency. Alibaba has accelerated steps to promote the large-scale deployment of AI on Taobao and Tmall, and integrate large language models into the platforms’ core search and recommendation engines to entice more consumers and increase sales. JD’s AI-powered digital humans assisted more than 40,000 merchants in their live-streaming sessions during the shopping festival, and the number of inquiries handled by intelligent customer service chatbots surpassed 4.2 billion, JD said, as reported by the China Daily.
China’s retail sales went up 4.5% year-on-year in the first three quarters of this year, with online sales climbing 9.8%.
