Singles’ Day: China’s Biggest Online Shopping Festival

Misha Pabari

September 22, 2021

It’s no secret that most of China’s shopping takes place online via marketplaces such as Tmall Global, JD.com and more. Spanning from anywhere between 24 hours to several weeks, shopping festivals such as Singles’ Day – or Double 11 Festival - have become a prominent part of any brands’ China ecommerce trading calendar.

What is Singles’ Day?

Singles’ Day festival is the biggest 24-hour online shopping festival in the world and originated in China. Taking place on 11th November each year, the shopping event has broken sales figure records each year since its birth and is often likened to Black Friday in the US despite their differences.

The history behind Double 11

November 11th (Double 11) was nominated by students in 1993 as a day to celebrate singledom or “anti-Valentine’s Day” in China. 11.11 was selected thanks to the symbolic nature of the number one where shoppers were encouraged to be proud of their single relationship status whilst treating themselves to a special purchase.

Alibaba spotted an opportunity to leverage this event turning Singles’ Day into a national shopping holiday. They first held the mass-scale shopping festival in 2009 in collaboration with a handful of brands and it was an immediate success with Chinese shoppers. Total GMV on the Singles’ Day 2009 reached around US$7.8 million, surpassing the average daily GMV that year by almost seven-fold.

The opportunity for international brands

Singles’ Day or Double 11 Festival has grown to become an unmatched opportunity for international brands to engage with loyal customers, develop new and dedicated product launches, plus an important way to gain consumer insights.

Blurring the lines between shopping and entertainment, shopping platforms and social media platforms alike adopt increased elements of social commerce and promotions into their offerings. Alibaba have been known to build up excitement for the shopping event with new site or app features which remain guarded until the grand reveal on Double 11 itself. Livestreaming and gamification with the use of influencers or KOLs (Key Opinion Leaders) have become increasingly popular methods of driving brand awareness and boosting demand generation on marketplaces.

Pattern’s Greater China team announced record-breaking results for its Tmall Trade Partner business over the 2020 Double 11 Shopping Festival, demonstrating the resilience of the Chinese economy through the pandemic, and the continued demand for international brands by Chinese consumers.

Tmall stores managed by Pattern grew their sales by an average of 91% year-on-year across the 11 days of 11.11 trading in 2020. In addition, every one of the brands we represent on Tmall achieved sales in the first 11 days of November 2020 that were greater than their Tmall sales for the whole of November 2019. In addition, several of the American brands that we represent in China achieved 11.11 sales that were up more than 200% year-on-year.

Building trading momentum throughout the year

They say that timing is everything, and this is certainly true when considering your annual promotional calendar on Tmall in China. For the majority of brands selling on Tmall, the biggest trading peak will occur around the Singles’ Day and brands can expect to make 30% of the total yearly revenue in the month leading up to November 11th.

The graph below shows an example of Tmall trading cadence across the year for international brands and demonstrates how each peak gets larger throughout the year, in the run-up to Double 11. These other important promotional trading periods, shown on our trading calendar should be used to test promotions and establish credibility with customers and Tmall.

Singles’ Day: China’s biggest online shopping festival - Pattern Blog

Many international brands fail to realise that it is invitation-only to participate with an official Tmall promotion; one that the marketplace with signpost and drive traffic to. Your performance in the main promotional periods earlier in the year will determine whether you are invited to participate in Tmall’s official Double 11 activity.

Not only this, Chinese consumers expect to see the biggest discounts and special offers for Double 11, so ensure you keep your best offers for then. The biggest deals are focused on the day itself, but pre-ordering and showcasing of deals start up to a month before and many brands carry on promotions until November 12th or 13th.

Planning for Singles’ Day 2021

The results from Double 11 Festival in 2020 proves that China continues to be a lucrative land of opportunity for brands who have invested to develop a strong brand awareness and localised proposition. Promotional planning for Singles’ Day now begins increasingly far in advance for international brands and should be an important part of your trading strategy.

Our General Manager for Asia Arthur Cheung explains: “Our data-driven approach to trading on Tmall, working in close partnership with the brands we represent, ensures that we optimise our 11.11 trading and marketing campaigns. This has resulted in another strong year of growth that we aim to capitalise further on in 2021.”

Pattern are a Tmall 5* Trade Partner, and provide full-service support on everything from market entry strategy, Tmall Flagship Store set-up and the ongoing operation, marketing and trading of your Tmall store.

We also act as a Trade Partner for JD.com, WeChat, Pinduoduo and Koala. For brands looking for a wider presence across Asia Pacific, we can support your launch on Lazada, Coupang, Shopee and Amazon.jp.

For more information on our approach to trading on Tmall Global, download our free Tmall Trading Guide or contact our team today.

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Improve Your Amazon Advertising Strategy With One Simple Metric: True RoAS
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Improve Your Amazon Advertising Strategy With One Simple Metric: True RoAS

The purpose of advertising on Amazon is simple: increase traffic and conversions. But the approach to get those conversions is not always so simple. Your Amazon advertising strategy is based on current ad data and performance results such as your return on ad spend (RoAS). 

At a minimum, your RoAS number tells you how well you’re maximizing your ad spend. The problem is the RoAS you’re getting from Amazon or an advertising agency isn’t always accurate. 

As a top 3P seller on Amazon, Pattern helps brands improve their Amazon advertising strategy and results by providing them with one simple metric: true RoAS.

Understanding True RoAS

To understand why true RoAS is helpful to brands, you need to understand how Amazon and other agencies calculate and present your RoAS.

The key to growing your brand and maximizing your ad spend is to drive incremental traffic, rather than cannibalizing what has already taken place. For example, if you are selling probiotics, and paying for sponsored ads to win the keyword “probiotics for women”, but also organically ranked in the top results with the same keyword, that’s cannibalization. The RoAS score you would receive from Amazon includes that level of cannibalism, which inflates the number, causing you to pay more on ad spend. The best ads drive incremental growth instead of cannibalizing organic sales. 

At Pattern, we’ve created the acceleration software to make sure brands are getting their “true RoAS”. Pattern’s patented tool applies artificial intelligence to advertising to maximize incremental growth or true return on investment. 

Our software helps brands optimize their efforts by providing live and updated information on where your brand is not organically ranking, and what you should be paying for. If your ranking improves in one area, the ad spend will automatically decrease for those words or phrases until the software detects a drop in ranking, signaling that your ad spend should go up again. This dynamic monitoring of ad spend will help you maximize incremental growth and improve your RoAS.

Improve Your Amazon Ad Strategy with Pattern

Knowing your true RoAS is key to improving your Amazon performance. Advertising agencies and marketplace account managers often give you an inaccurate RoAS ratio or value, which only incentivizes you to spend more on advertising, ultimately increasing revenue for the agencies and/or marketplaces.

At Pattern, a 3P partner on Amazon and other marketplaces, we view our brands just as that: a partnership. When you win, we win. You succeed on Amazon by maximizing your ad spend and we have the data and resources to help you do just that. Accurate, transparent data and reporting will help improve your advertising strategy to drive more traffic to and conversions on your products. 

Ready to finally get your true RoAS? Contact us.   

Slowing Inflation is Music to Consumers’ Ears
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Slowing Inflation is Music to Consumers’ Ears

**Instrument Pricing Changes Tune Amid Record Inflation** Compared to 2022, consumers should expect to pay more for musical instruments, but the rate of inflation shows signs of slowing. **The backstory:** America’s most popular musical instruments saw a notable price increase in 2022 compared to 2021, but the rate of inflation eased in Q4 ’22. **Why it matters:** Slowing inflation within this product category could indicate economic pressures like increased demand, rising labor costs, and supply chain disruptions are easing across the consumer landscape. **What we’re seeing:** The average cost of musical instruments increased 7.5% from 2021 – 2022; however, when analyzing individual increases year over year, some instruments saw price increases as high as 21%. <iframe title="YOY Price Change for Instruments — 2022 vs. 2021" aria-label="Bar Chart" id="datawrapper-chart-02Lwk" src="https://datawrapper.dwcdn.net/02Lwk/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="379" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> * Trombones experienced a 21.73% increase compared to 2021 * Trumpets +20.08% * Flutes +18.6% * Recorders +16.13% * Saxophones +13.63% * Clarinets +10.55% * Drums +5.41% * Ukuleles +5.17% **However:** Inflation among these same instruments was significantly less in Q4 ’22 compared to Q4 ’21. In some cases, prices decreased from Q4 ’21 – Q4 ‘22: <iframe title="Price Change for Instruments — Q4 2022 vs. Q4 2021" aria-label="Bar Chart" id="datawrapper-chart-6X6GZ" src="https://datawrapper.dwcdn.net/6X6GZ/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="379" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> * Trombones +11.23% * Flutes +10.41% * Saxophones +5.94% * Clarinets +5.59% * Trumpets +3.10% * Recorders +2.85% * Drums -2.59% * Ukuleles -8.46% **Moreover:** Certain instruments saw inflation reverse in 2022. On average, prices for melodicas, guitars, and violas saw their prices decrease by 4.41%, 3.19%, and 0.97%, respectively. <iframe title="YOY Price Change for Instruments — 2022 vs. 2021" aria-label="Bar Chart" id="datawrapper-chart-0Tefk" src="https://datawrapper.dwcdn.net/0Tefk/3/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="259" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> **Diving Deeper:** Inflation was more significant when comparing Q4 ’21 to Q4 ’20 than when comparing Q4 ’22 to Q4 ’21, indicating a slowing down of price increases for consumers. <iframe title="YOY Q4 Price Change for Instruments — 2020 – 2022" aria-label="Stacked Bars" id="datawrapper-chart-p6iqt" src="https://datawrapper.dwcdn.net/p6iqt/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="206" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> * In Q4 ’21, average prices for all instruments were up 8.89% compared to Q4 ’20. * When comparing Q4 ’22 to Q4 ’21, the average price for all instruments only increased by 2.65%. **The takeaway:** While consumers should expect to pay higher prices for instruments this year, overall inflation impact within this product category appears to be slowing down. With National Ukulele Day coming up on February 2, now is a great time for ecommerce brands to take advantage of slowing economic worries and reach new consumers. * Want Pattern’s data science team to power your brand with consumer insights like these? Contact us to [request more information](https://pattern.com/contact-us/) today.

Slowing Inflation? What Musical Instrument Pricing Tells Us
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Slowing Inflation? What Musical Instrument Pricing Tells Us

It’s safe to say consumers and brands alike are eager for a change to the pattern of rising inflation, steadily increasing in many ecommerce categories . Pattern’s internal team’s data scientists analysis of instrument pricing shows a glimmer of hope that inflation may be slowing, which would be great news for brands selling online.

At Pattern, we’re interested in and monitoring trends and news related to pricing since price is a key factor in a brand’s profitability (as explained in the Ecommerce Equation). When brands are able to optimize their price, conversions, and traffic, they can optimize their profitability. And profitability leads to better allocation of resources, better brand control, and gives leaders the ability to expand their presence to new markets worldwide.

YoY Instrument Pricing Increased at a Slower Pace

When analyzing the pricing changes of instruments from 2021 to 2022, our teams found that prices increased, but at a slower rate than from 2020 to 2021.

As shown below, the year over year Q4 changes show quite a lower rate of increase.

Inflation Improvements Raise Profitability

Because inflation impacts online shopping behaviors, lower inflation can lead to better overall profitability for brands. This idea, of course, is nuanced, but Pattern’s Ecommerce Equation can help illustrate the general principle.

When inflation rises, consumers change their spending habits. Shoppers spend more time researching products, forego premium, higher-priced brands, and buy more in bulk. Brands tend to see a loss of loyalty as they’re forced to raise prices.

Price is a key variable in the Ecommerce Equation: price x conversion x traffic = profitability. As inflation lowers, brands can expect better performance in all of these areas—more traffic as spending habits return to normal, higher conversion from returning customers, and price that better fits consumer demand. As inflation lowers and these variables stabilize, brands will see profitability increase.

Raise Your Profitability with Pattern

As an ecommerce accelerator, Pattern is obsessed with gathering data that helps our brand partners succeed. We’ve created best-in-class technology, models, and analytics to understand changes on the horizon and inform our decisions. With an incredible team of data obsessed Pattern employees, we see what makes the difference in truly great ecommerce performance and apply those learnings for brand partners. 

Ready to improve your profitability? Contact us here.