Here’s what this Chinese e-commerce major is doing to drive user growth amid intense competition
Within the first hour of 6.18 global beauty brand L’Oréal clocked sales worth over RMB100 million ($14.02 million) as did Estée Lauder, Lancôme and China’s Proya Cosmetics on Alibaba’s marketplaces.
All signs are pointing towards Chinese consumers’ willingness to spend again, fuelling the success of 6.18 mid-year shopping event (running from June 1 to June 18 – the date when JD.com was founded). 6.18 is China’s second-largest retail event after Single’s Day in November.
Attractive discounts spurring consumer spend
To leverage the power of this shopping event Chinese e-commerce major Alibaba has strategically planned to drive-up user growth for its digital marketplaces Taobao and Tmall through attractive discounts on over 60 million products.
Between May 31 and June 3, every time consumers spend RMB300 ($42.13) or above on Tmall, RMB50 ($7.02) will be automatically discounted from their bill. While on Taobao consumers will save RMB30 for every RMB200 ($28.09) or above they spend. In addition, to satiate “deal hunters” Taobao has subsidised consumer spending to the tune of RMB10 billion ($1.40 billion) during the 6.18 shopping festival.
Further, capitalising the FOMO [fear of missing out] sentiment these platforms have curated limited time offers. For example, from June 4-13 on Tmall skincare, clothing and home appliances will each have a 72-hour shopping window with special discounts, whilst imported goods will have a 24-hour window.
Post-pandemic as Chinese shoppers are still “cautious” about spending on big-ticket items, Alibaba’s Taobao and Tmall are encouraging consumer spending while driving user growth by offering quality products at competitive pricing.
Livestreaming to rev up spending
Kim Kardashian reportedly sold 15,000 bottles of her fragrance within minutes after collaborating with Taobao’s livestreaming heavyweight Viya Huang. That’s the power of livestreaming in China, a format familiar to almost half of China’s 1.05 billion internet users.
By fusing entertainment with instant shopping livestreaming or live shopping was first introduced by Alibaba during its Single’s Day event in 2016 therein opening up a powerful sales channel. The live commerce market in China grew at a CAGR of over 280% between 2017 and 2020 touching $171 billion (RMB1,217 billion) in 2020, as per McKinsey & Company. A channel that could account for 10-20% of all e-commerce by 2026.
It’s a no-brainer thus that several global brands including Louis Vuitton to IKEA have leveraged livestreaming in China. Joining the bandwagon is Apple which has planned it first-ever livestream session during this 6.18 on Taobao, which accounts for almost 80% of the live shopping market in China.
A frictionless omnichannel experience which is predictive, value-focused, and highly personalised isFebruary 16, 2023 | By RetailME Bureau
J Lindeberg was started by Johan Lindeberg in 1990s with the aimSeptember 2, 2022 | By RetailME Bureau
At a time when 1/3 of the world’s food is wasted, a
Global heavyweights from around the world are confirming their participation at InFlavour,
Coffee Planet has unveiled a new brand identity to reinforce its position
The expansion of the organic food and grocery market in the UAE
Dubai-based consumer cooperative brand Union Coop has signed a memorandum of understanding
UAE-based diversified business GMG’s Everyday Goods – Retail division has announced the
Located in Al Aweer and spanning 66,000 square metres the recently opened
Abu Dhabi-based diversified F&B company Agthia Group has launched a $54 million
Grocery retail major Carrefour, owned and operated by Majid Al Futtaim in
UAE-based diversified business GMG has opened the first monop convenience store at
Carrefour, which is owned and operated by Majid Al Futtaim Retail in
Soon after the pandemic made its way around the world in 2020,
UAE shoppers continue to be the most mobile-centric and omnichannel consumers globally,
Luxury retailer Chalhoub Group recently launched beauty report titled ‘Decoding the Beauty
Content by Mastercard A consistent theme across the Eastern Europe, Middle East
Imagine this – October 2020 amid the pandemic when the streets are
Born between 1997 and 2012 Generation Z or Gen Z prioritise personalisation
Spanish retail group Inditex continues to see “strong growth opportunities” as the
The need of the hour is to reduce food loss and food
Starting with a global perspective, the worldwide e-commerce retail sales are expected
The GCC region has seen “unprecedented change” in terms of women representation,
Sixty-nine percent of UAE consumers are seeking an omnichannel shopping experience and
Valued at SAR19.3 billion the Kingdom of Saudi Arabia’s e-commerce market accounts