The mad rush to acquire PPE during COVID turned a simple thing into solid gold.
That distortion was caused by bad leadership and particularly bad policy.
But even GOOD policy can cause massive (potentially negative) disruptions in market prices and strains on supply chains.
Beginning June 1st the Chinese government is forcing its 300-million-strong “Scooter Class” to wear helmets.
News of the policy change has transformed what is otherwise a “sleepy” category into one of the hottest on the planet.
Helmets for sale on Alibaba’s platforms must follow strict testing and safety guidelines including 3C registration.
Thus, the dealers with authentic gear are experiencing a boom, while market prices on certain items are doubling and tripling in value and many are completely sold out.
#China #eCommerce #ChinaBusiness #Scooters #Policy #Government #Alibaba #Tmall #Taobao
Chinese consumers have a serious appetite for luxury goods. While most categories saw a drop in sales early in the COVID crisis, shoppers are now making up for lost time.
Luxury brands who are thinking about entering the Chinese market may want to evaluate their brands and consider acting sooner rather than later.
I recently spoke with @Gemma Williams @Jing Daily about the complexities facing brands in the luxury sector as they decipher which platform(s) might be best for them.
It can be so hard to decode. What are the costs and benefits associated with each marketplace? What do you qualify for and where will you find the most success? Luckily, this article breaks it all down for you (including an amazing cheat sheet that you’ll want to keep close at hand…)
Check out the full article here: https://jingdaily.com/navigating-tmall-a-guide-for-luxury/
#Tmall #Taobao #TmallGlobal #JD #China #Ecommerce #Marketplaces #ChinaEcommerce #ChinaBusiness
Singles Day 2019 ended strong with 268 Billion RMB (U$38 Billion) gross merchandise value (GMV). Once again, a new record has been set and it’s 27% higher than last year’s event.
Many analysts have been quite pessimistic about this year’s growth considering that it has slowed down in recent years and especially because of the China-US trade war. So this year’s increase in growth came as quite a surprise.
But this increase in growth came at a price. Tmall put in significant investments to make this year’s Singles Day even bigger and stores had to put in extra work achieve that growth rate.
The old “screen real estate” game focused on optimizing search and conversion is no longer enough. Stores had to do a lot more: partner with KOLs, bring in additional traffic from Douyin, give bigger discounts, offer more free gifts, sell through live streams, lottery style giveaways, offline live events, or all of the above. That’s without reducing budget on in-platform advertising (CPC, CPM).
While we can’t say for sure if most stores were able to achieve 27% growth, here’s what happened to the stores we operate.
We run stores spanning across several categories that are completely unrelated. Many of these stores were participating in their first ever Singles Day, going up against brands that have already established a strong presence in China over the years.
Most stores were within a few percentage points of their sales targets, which were based on a growth rate very close to this the platform’s actual growth. Some stores did overwhelmingly well, going 50% above an already optimistic target for Singles Day.
We also had two instances of decline in sales this year. One of the stores ended up losing platform support for Singles Day because the brand decided to expand to other ecommerce platforms. While such a decision might fit into a larger brand strategy, the impact on Tmall sales is undeniably catastrophic.
Another store saw a 28% decline due to a significant reduction in marketing budget for basic in-platform advertising. While optimizing paid ads is no longer as attractive as it once as, it’s still a crucial component and we saw that it could be the deciding factor for declining sales in a growing market.
Overall the results fall in line with the platform’s overall growth. Stores do need to be more creative and diligent than before in earning traffic, but we learned that the basic rules of the game have not changed. You cannot replace the foundation of running a Tmall store.
See Josh Gardner quoted about Double 11 (Singles Day) in Aljazeera and Channel News Asia.
Live-Streaming a Key Part of 11.11 Global Shopping Festival in 2019
In a recent article by Reuters, we discussed how live-streaming has become a key part of Alibaba’s 11.11 Global Shopping Festival, also known as Singles Day. Here’s an excerpt:
“Over half of merchants on its Tmall marketplace used live streaming to sell products during the event, and sales generated through the medium surpassed 10 billion yuan at 8.55 a.m. (0055 GMT), Alibaba said.
Nearly all our brands have opted for livestreaming promotions sometime this year,” says Josh Gardner, who helps overseas companies sell products on Tmall as CEO of Kung Fu Data.
“It’s more entertaining than browsing through a product detail page. Traffic from livestreaming is easy to convert into transactions, and Tmall has supported stores that run livestreaming activities with resources.””
Read the full article here: https://www.reuters.com/article/us-singles-day-alibaba-sales-idUSKBN1XK0HD)
#Tmall #Alibaba #SinglesDay #Double11 #GlobalShoppingFestival #China #eCommerce
Live Updates and Sales Data for 2019’s 11.11 Global Shopping Festival (Singles Day)
Singles Day is well underway. This year, Tmall has recorded $26 billion USD after just the first 12 hours! If you’d like to keep up with real time sales data and event updates check out https://www.alizila.com/
More to come tomorrow…..
#China #eCommerce #Tmall #Alibaba #Taobao #SinglesDay #GlobalShoppingFestival #Double11
Tmall Announces New Tools for Singles Day 2019 (Part 2)
At conferences for merchants held earlier this fall, Tmall category managers also shared various tools for 11.11 and encouraged all merchants to use them to increase engagement with consumers. In the coming days, we will share the new tools, their features, and how they can be of use to merchants and store operators.
Xinkebao-First-time customer targeting tool:
New audience targeting tool specifically designed to acquire new first-time visitors.
Some of its features include:
-accurately targeting new potential customers -exclusive deals only for new customers.
-Hongbao (lucky money) offers for these new customers -special coupons for first-timers that can be redeemed in a few separate purchases, encouraging people to come back again for another purchase later on.
Stay tuned for information on the other exciting tools Tmall is unveiling for this year’s Double 11.
#Tmall #Taobao #ALibaba #SinglesDay #Double11 #China #eCommerce