For UK businesses aiming to succeed in China’s competitive e-commerce landscape, here is a closer look at the key trends, data, and insights from Double 11 2024 that can act as a hands-on guide towards creating impactful, consumer-focused strategies and staying relevant in 2025.

Double 11 2024: Key stats and figures

According to data provider Syntun, this year’s event demonstrated an impressive rebound from the previous year, with total sales growing by 26.6% compared to 2023, bringing the estimated gross merchandise volume (GMV) across major platforms to approximately RMB 1.44 trillion (£120 billion). Notably, sales were driven by an expanded consumer base and an increasing reliance on digital and AI tools, particularly in customer personalisation, which resonated well with shoppers.

E-commerce platform market share and growth rates

Alibaba (Taobao and Tmall): Alibaba maintained its leading market share, with brands like Apple, Nike, Haier, and Midea achieving sales exceeding RMB 1 billion (£108.3 million) each. Such success signals strong consumer trust and an affinity for premium global brands amongst Chinese consumers.

JD.com: JD also reported notable growth with a 20% increase in shoppers, driven by strong sales in home appliances and electronics, supported by both government subsidies and brand-specific trade-in incentives. This has made JD.com the number one marketplace for these two categories, taking 42.8% and 39.1% respectively of the entire market share. Among electronic devices, JD.com has achieved a market share of 56.9% and 62.7% for mobile phones and accessories and for computer devices, respectively.

Pinduoduo (PDD) and Douyin (Chinese TikTok): Emerging platforms PDD and Douyin continued to gain traction, especially with younger consumers through group buying and video-driven e-commerce experiences. While PDD focuses on the domestic market, it followed Alibaba and JD.com and ranked third amongst all marketplaces. Douyin remains China’s top live-streaming platform, while the sales generated by live-streaming across platforms have reached RMB 33.2 billion (£3.6 billion).

Top-selling categories and evolving product preferences

This year’s Double 11 highlighted shifting product preferences:

Home appliances emerged as a top category, buoyed by trade-in programmes and subsidies.

Fitness and outdoor gear saw a surge as consumers focused on health and wellness.

Collectible toys and specialty goods gained traction, underscoring the desire for unique and collectible items with emotional or experiential value.

UK brands should consider the rising demand for premium, experiential and lifestyle-oriented products. Businesses in wellness, fitness, or home-related categories, or those with unique product offerings, may find opportunities by positioning their products as enhancing quality of life or offering a distinctive experience.

Trends and insights for UK businesses

Value-driven and cautious consumption

Compared to 2022 and 2023, this year’s Double 11 showcased a shift towards value-conscious spending as consumers balanced quality and affordability. In addition, cautious consumption is reflected in consumers’ choices of live streamers. When consumers who were not price sensitive in the past began seeking reliable offers and live streaming sessions, they tended to trust top influencers with established reputations. For example, despite angering his fans with his remarks about a pricey eyebrow pencil last year, live streamer Austin Li is still seen as highly professional and trusted, with his sales exceeding those of the top 5 live streamers combined, per Douyin.

Consumer demand for emotional value and experience

Emotional engagement has become a major factor in purchasing decisions, with over 40% of Chinese consumers prioritising products that enhance personal wellbeing. UK brands that focus on wellness, lifestyle enhancement or sustainability can leverage this trend by emphasising experiential and emotionally resonant aspects of their products. For example, British wellness and lifestyle brands can highlight how their products support relaxation, self-care, or wellbeing, key themes in the evolving Chinese consumer mindset.

Technological integration and AI-driven personalisation for better experiences

Platforms such as Alibaba and JD are increasingly integrating AI to personalise the shopping experience. From targeted product recommendations to digital customer support, technology has become central to engaging Chinese shoppers effectively. While consumers this year complained that the overly complicated rules for coupons and offers have been extremely exhausting, AI-driven tools for personalisation have made shopping experiences easier, allowing products to reach the right consumers at the right time. Moving forward, AI tools that streamline operations, support predictive analytics or improve customer service can strengthen market competitiveness for UK businesses.

Recommendations for e-commerce strategies in 2025 and beyond

Highlight British heritage and quality: The premium perception of British products remains strong. Highlighting elements of heritage, quality and sustainable practices can differentiate UK brands from local and international competitors.

Adopt an emotion-driven approach: Given the trend of cautious spending and emotional values, positioning products as being of premium quality that will lead to a better lifestyle is a strategy that could encourage higher spending.

Invest in technology partnerships: Collaborate with Chinese partners to leverage AI, personalisation and data analytics to help optimise engagement and conversion rates.

Leverage live-streaming and influencer marketing: Engage KOLs and explore livestream shopping to build brand presence, especially on platforms like Douyin and Xiaohongshu, which appeal to younger, more experience-driven consumers.

Double 11 2024 has provided invaluable insights into Chinese consumer behaviour, setting the stage for UK businesses to refine their strategies and capture market share in 2025. By embracing emotional value, AI-driven personalisation, and strategic engagement, UK brands can navigate this complex market effectively and build lasting consumer relationships. As China’s e-commerce ecosystem continues to evolve, staying aligned with these trends will be crucial for sustainable success in the world’s largest online marketplace.

The post China’s Double 11 2024: Strategic insights for UK businesses appeared first on Focus - China Britain Business Council.

The landscape of shopping festivals in China has undergone a remarkable transformation over the years. What started as single-day events blossomed into month-long celebrations, marked by pre-heats, extravagant galas and a crescendo of discounts and promotions.

However, in recent years, a quieter revolution has been underway, with the shopping holidays now shifting towards more lowkey events that focus on conscientious consumption. Especially in the past year, consumers have become more rational in their purchases, leading to an increase in focus on cost efficiency and high value at low prices.

Despite the continued year-on-year growth of these festivals, there are signs of a slowdown, with e-commerce giants like Alibaba and JD.com scaling back on reporting gross merchandise value (GMV) for major events like 618 (‘Mid-Year Festival’ on 18 June) and Double 11 since 2022. This deceleration underscores the need for brands to adapt their strategies to navigate an increasingly competitive and saturated market.

What does this mean for shopping festivals in China?

While shopping festivals remain a cornerstone of the Chinese e-commerce landscape, brands must adopt a more strategic approach to their participation. Content and entertainment have emerged as essential tools of product promotion, with short videos and live streaming gaining prominence. During last year’s Double 11 festival, live streaming alone contributed an estimated GMV of RMB 215.1 billion (over £233 million), which was a year-on-year growth rate of 20%, while views of short videos on Taobao surged by 113% during last year’s 618 festival.

Although in the past, participation in 618 and Double 11 was a given for all brands, nowadays, careful consideration is required due to heightened competition and diminishing profit margins. Collaborating with key opinion leaders (KOLs) and live streamers during these peak periods often requires premium fees, while consumers expect steep discounts, squeezing margins.

An alternative approach that is gaining traction among brands is to host their own live broadcasts, offering greater control over messaging and content. By circumventing established live streamers, brands can tailor their broadcasts to align with their unique brand identity. However, starting off with brand live streams during the major shopping festivals may not be the best strategy for smaller brands. The lack of brand recognition will lead to the risk of being overshadowed by larger competitors, ending in low viewership and a lack of sales.

Instead, newer brands to market may consider starting off their shopping holiday journey by participating in shopping holidays such as Double 9 or Double 12, where they can make a splash without the intense scrutiny of 618 or Double 11. Alternatively, brands may also choose to participate in other holidays such as Qixi (Chinese Valentine’s Day) and International Women’s Day. These holidays allow for more theme-focused campaigns and increased opportunities for emotional storytelling that may resonate with Chinese consumers.

Even when not participating, shopping holidays can be used by brands as a barometer of consumer sentiment, allowing brand managers to understand emerging product trends and consumer behaviour patterns. Data provided through these holidays can be used to shape brand strategies for the remainder of the year.

The 618 shopping festival in 2024

With promotions having begun on 20 May and lasting until 20 June, the 618 shopping festival this year has got off to an impressive start. In preparation for the event, Alibaba made several major changes. The company provided its Taobao platform with its largest update in several years, simplifying the sales experience for customers and allowing merchants to design their stores more easily.

Moreover, Taobao and Tmall removed the pre-sales model, which had previously allowed users to place deposits prior to the start of campaigns to guarantee product availability in the case of the product selling out. The cancellation of this model comes as an attempt to increase competitiveness against other platforms and prevent consumers from switching to other platforms during the pre-sales period.

These changes were made with the intention of improving the user experience, thus encouraging prolonged browsing of the platform.

Within the first four hours of the 618 event kick-off on 20 May 2024, the RMB 100 million (£10.89 million) GMV target was already reached by over 59 brands on Taobao and Tmall, while 376 individual products reached over RMB 10 million (£1.09 million) in GMV each.

Even as we wait for the no doubt impressive total sales figures from this year’s 618 festival to come in, over the last two years, it has become apparent that consumers are less inclined to do a large percentage of their shopping during major shopping festivals. Instead, they look for discounts year-round. This has led to less focus on the likes of 618 and Double 11 and could be perceived as a slowdown. However, at RedFern Digital, we see this more as a normalisation. As the retail market steadies and consumers are less driven by the hype around major events, brands should focus on increasing recognition and awareness, steadily growing a loyal base of customers year-round. Content driven engagement, loyalty programmes, and unique campaigns or brand collaborations throughout the year can help with increasing brand value, while shopping holidays can be treated as add-ons.

This article was originally published in the June 2024 edition of RedFern Digital’s The Red Edition. Click here to download the full magazine.

The post The Evolution of Shopping Festivals in China appeared first on Focus - China Britain Business Council.

Once an unmissable fixture in the marketing diary of any consumer company serious about growing sales and customers in the world’s biggest e-commerce market, Singles Day or Double 11 is now regarded with much circumspect by brands and consumers alike.

Against a background of a slowing economy and softening of consumer demand, China’s e-commerce and social commerce platforms are accelerating competition for the purchases of Chinese consumers. But consumers are displaying caution and value consideration with many calling online for more “rational” spending. Plenty of them are eschewing purchases despite the heavy discounts – choosing instead to spend on activities and products leading to personal fulfillment.

In 2023, Singles’ Day has been divided into two or three phases by major platforms such as Tmall and JD.com. The first phase of pre-sales started in late October and finished on 3 November, during which time consumers placed orders and paid a deposit to lock in their purchases. Statistics revealed that from 31 October to 1 November, total sales reached RMB 196.3 billion (£22 billion). Tmall took 59% of the sales and JD.com 32%, with other platforms (e.g., Douyin, Pinduoduo, etc.) making 9% in total. 

The consumer sector is in the throes of fierce competition, with e-commerce platforms engaging in price wars using strategies like price matching and lowest price guarantees. JD.com’s theme for Singles’ Day 2023, “Real Cheap”, underscores the commitment to value for money, especially in the realm of domestic products. However, many consumers argued that there were no ‘real cheap’ products or meaningful discounts that benefitted them, and they were sometimes confused or exhausted by the complicated rules across various platforms.  

This year’s festival also highlights a significant shift towards conscious consumer behaviour, with an extraordinary focus on domestic products and brands with a purposeful mission. Interestingly, the allure of influencer-driven purchases has waned, with livestreams now influencing only 22% of consumers, down from 32% in 2021. 

Chinese consumers have been increasingly inclined towards domestic brands, with a remarkable 66% intending to allocate more of their budgets to homegrown products. This shift is underpinned by a deep trust in the quality and safety standards of these brands, particularly among the younger generation.  

The market demand for male products also increased by 10 November, overtaking pet products on the top sales lists for the first time. Electronic devices and outdoor activity equipment are the most sought-after among this group of consumers.  

With the prevailing trend for so-called ‘quiet luxury’ lifestyle livestreaming on social commerce platforms such as Xiaohongshu, consumers are no longer as driven by low prices and coupons compared to Singles’ Day events from previous years. Personalisation, sustainability and brands with meaningful missions are all trends that are expected to shape future editions of Singles’ Day.

In addition, with multiple platforms providing discounts or coupons with certain conditions or a minimum spend, consumers on social media are openly discussing what products to buy to meet the conditions and even returning products they don’t need after the shopping festival is over, including medium to high priced products like Ralph Lauren jackets. Therefore, it is highly recommended that brands consider the post-festival return rate when evaluating their Singles’ Day performance.  

The post How did China’s Singles’ Day perform this year? appeared first on Focus - China Britain Business Council.

Although in recent years, some have started to question the relevance of Singles’ Day (especially after Alibaba declined to release sales figures for the first time in 2022, it remains a major event on the sales calendar that brands ignore at their peril.

Below, we review some of the major consumption trends that we are seeing in the run-up to Singles’ Day 2023.

Sales are increasingly spread across multiple platforms

As CBBC’s Celine Tang, China Business Adviser (Consumer Retail & E-Commerce), noted in our analysis of Singles’ Day last year, “An increasing number of consumers are planning to purchase products on at least three different platforms (or even more than five). This is due to different discounts being offered and consumers being more loyal to brands rather than to platforms.” This is truer than ever with the rise of social commerce platforms like Pinduoduo and Douyin; the latter’s beauty division recently achieved its highest-ever sales, exceeding RMB 113 billion (£12.6 billion) in just the first three quarters of this year.

Low cost vs. high value

In its early years, Singles’ Day was all about low, low prices, and while the proposition has shifted somewhat in recent years, Alibaba has said it will be offering major discounts in 2023, including RMB 50 off every RMB 300 (equivalent to 17%) spent on B2C marketplace Tmall. Chinese consumers (especially middle-class consumers in tier 1 and tier 2 cities) are becoming increasingly value-sensitive, often willing to pay high prices but only if they feel they are getting a unique value proposition. For brands, this could mean creating special product bundles for Singles’ Day or even using the event to launch new or limited-edition products.

Physical products are not the only things on sale

As Chinese consumers show an increasing demand for ‘experiences’ rather than just ‘products’, a wider range of platforms are taking part in Singles’ Day promotions. For example, Alibaba Group’s online travel platform Fliggy has launched a record number of Singles’ Day travel promotions, with Marriott, Hilton, Disney and Universal Studios all taking part. Many hotels and restaurants in China will offer promotions such as voucher packs or discounted lunch or dinner buffets.

The growing role of AI

Last year, the Singles’ Day buzzword was “metaverse”, but as with so many conversations this year, the focus has shifted to AI. In 2023, Singles’ Day shoppers will get a helping hand from Taobao’s AI assistant, Wenwen, for the first time. The chatbot, which has been tested by over 5 million people since September, can give purchase suggestions (e.g., for the best-value down jacket) or help shoppers get the best prices by analysing combinations of discounts. On the brand side, platforms are using AI tools to help merchants with things including image and text content generation, data analytics, and customer service.

The post 2023 Singles’ Day Trends to Look Out For appeared first on Focus - China Britain Business Council.

Singles’ Day (aka Double 11 or 11.11) has wrapped up another year of sales. The festival – always a focal point for consumer brands and analysts alike – was under increased scrutiny this year in the face of troubled economic waters. Read on to find out what happened at the world’s biggest shopping festival this year.

Alibaba conceals sales figures for the first time

For the first time since Singles’ Day started in 2009, Alibaba did not disclose the gross merchandise value (GMV) made from the event, saying only that sales were in line with 2021 “despite economic and Covid-related headwinds”.  JD also didn’t publish any sales data.

This is, of course, being read by many as a sign that sales are way below expectations. But according to digital retail analysts Syntun, the GMV of traditional e-commerce platforms like Taobao between 31 October and 11 November was RMB 934 billion. With live streaming e-commerce added in, this figure broke RMB 1 trillion.

Any drop in Singles’ Day sales will naturally attract a lot of attention, but the number of products being sold is still astronomical. Furthermore, for the past few years, many consumer analysts have been recommending that brands switch the focus of their Singles’ Day efforts from GMV to customer loyalty and customer acquisition.

Chinese brands increase in popularity

More than half of the top 100 brands (ranked by sales) during the first few hours of Singles’ Day this year were Chinese brands according to Xinhua. Top-selling Chinese brands included down jacket brand Bosideng and Nike-challenger Anta. However, foreign brands do still perform well in categories where product safety or quality of materials is a concern, such as skincare, pet food and childcare-related appliances.

Chinese brands have been experiencing a surge of popularity in recent years, a trend known as ‘guochao’ (literally ‘national wave’), driven by both an increasing nationalist sentiment and a significant increase in quality. Traditional Chinese handicrafts or products that incorporate Chinese design elements are also surging in popularity, with JD reporting that sales of traditional cloth shoes and embroidered shoes were up 400%.

Niches become mainstream

The most popular product categories during Singles’ Day are still beauty and household appliances. However, niche categories such as glamping and skateboarding have seen massive growth driven in part by Chinese consumers looking for activities to replace the overseas travel opportunities lost to Covid. According to Alibaba, the GMV of camping and fishing products sold on Tmall within the first hour of Singles Day doubled compared to 2021.

Technology-enabled solutions and sustainability are top of mind

Even the metaverse got involved in Singles’ Day this year, with digital influencers helping to promote products from all manner of brands. Tmall Luxury Pavilion, a luxury shopping platform home to brands like Burberry, even launched its own virtual influencer, Timo, to promote luxury brands. Tmall also created a virtual shopping mall where users could try a wide range of products on a virtual avatar. Brands should consider exploring how to incorporate these digital innovations into their marketing to stay top of mind, especially among young Chinese consumers.

Sustainability has also become a watchword for Singles’ Day, with major platforms launching initiatives to cut down on carbon emissions and packaging waste. For example, Tmall partnered with major brands like Proctor & Gamble to reward consumers with free reusable shopping bags made from recycled plastic bottles when they bought products with low carbon labels.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research and analysis services can provide you with the information you need to succeed in China.

The post Singles’ Day 2022 stats and trends appeared first on Focus - China Britain Business Council.

Although Alibaba recorded gross merchandise volume of RMB 540.3 billion (£64.9 billion) during 2021, this year looks set to be one of the most challenging yet since the launch of the festival in 2009. China has experienced a drop in consumer confidence in 2022 due to ongoing zero Covid-related disruption in multiple cities, alongside other challenges including high youth unemployment, difficulties in the real estate sector and a potential global recession decreasing demand for Chinese goods.

“China remains one of the world’s most dynamic and technologically advanced markets, despite political headwinds. Understanding China’s political, economic, and social developments will only become more important for businesses and investors as the world enters the post-pandemic era.” – Torsten Weller, China Policy Analyst, CBBC

Nevertheless, China is still the world’s biggest e-commerce market, and we can still expect to see some mind-bogglingly large sales figures, along with some new e-commerce trends. This is CBBC’s prediction of what to look out for ahead of Singles’ Day 2022.

Are Taobao and JD being knocked off the top spots?

Social commerce platforms like Douyin (China’s TikTok), Xiaohongshu, Kuaishou and even WeChat Mini-Programs are entering the shopping festival fray, putting pressure on Taobao and JD. Douyin is reported to be targeting an annual Gross Merchandise Value (GMV) of RMB 1.7 trillion this year. This presents challenges and opportunities for consumer brands, with the possibility of accessing new consumer markets through different channels needing to be balanced with the resources required to launch e-commerce strategies across several platforms. Nevertheless, as a recent report by Samarkand Global argued, a decentralised approach to e-commerce avoids the risk of being overly reliant on one channel or influencer to drive revenue.

More and better services

With consumer attention increasingly divided, the traditional players are having to look to new strategies to attract and retain customers throughout the e-commerce journey, including faster or more tailored logistics solutions. For example, CBBC’s Celine Tang points out that Taobao has added a new function that allows multiple delivery addresses for one order, making it easier for consumers to purchase for their families and friends while using discount coupons which usually have a minimum spend requirement.

Top consumer trends to look out for

As is often the case with Singles’ Day, millennials and gen z (particularly those born between 1990 and1999) will be the key customer group for many brands. According to e-commerce accelerator Pattern, this year, some of the key product categories this group is likely to be investing in include new and trendy instant coffee products, accessories for hobbies such as glamping and winter sports, home entertainment (including games consoles and e-sports equipment), and essential oils and home scents.

Aiming for loyalty rather than sales

Savvy brands are looking at customer loyalty as a more important metric than GMV ahead of this year’s Singles’ Day. Tmall has been promoting its membership programmes for brands, which allow brands to engage directly with their highest-spending customers and push out updates to increase engagement. According to Tmall, during the Singles’ Day 2022 presales, brands gained more than 66 million new members, with members contributing more than 50% of GMV for thousands of major brands.

“An increasing number of consumers are planning to purchase products on at least three different platforms (or even more than five). This is due to different discounts being offered and consumers being more loyal to brands rather than to platforms.” – Celine Tang, China Business Adviser (Consumer Retail & E-Commerce), CBBC

Live streaming is still the most popular promotional method

Despite going off the air for several months in 2022 due to a political snafu, China’s most famous live streamer Li Jiaji (aka the ‘Lipstick King’) is back with a bang for Singles’ Day, already attracting 460 million views for a lengthy live stream that marketed 291 different products, according to Dao Insights. Taobao Live looks to be having a good year all round ahead of Singles’ Day 2022, with several top live streamers formerly associated with Douyin making surprise moves to the platform.

Sustainability concerns

Critics have long pointed to the vast environmental impact of online shopping festivals like Singles’ Day, from the swathes of excess product packaging generated, to the emissions produced by delivery vans. Young Chinese consumers are increasingly well-educated on sustainability concerns and want to make conscious purchasing decisions. In response, Alibaba has launched initiatives such as labels to alert buyers to low carbon products, as well as vouchers for energy-efficient products. However, consumers facing a cost-of-living crisis are likely to be on the lookout for bargains rather than environmentally-friendly choices at present.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research and analysis services can provide you with the information you need to succeed in China.

The post What trends can we expect to see on Singles’ Day 2022? appeared first on Focus - China Britain Business Council.