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At 0:00 on the 11th of November in 2018, China’s Double 11 shopping spree officially kicked off. According to the report, the turnover of 2018 Tmall Double11 exceeded 10 billion yuan in just 2 minutes and 5 seconds. Suning’s turnover exceeded 100 million yuan in 4 seconds and it exceeded 1 billion yuan in 50 seconds. Moreover, Jingdong, which started the spree on the 1st of November, reported that its turnover has exceeded 100 billion yuan by 10th November.
This year's Double 11 has five new features. First, it has combined online platforms with offline platforms. Before, Double 11 mainly was hold on the online platform. However, in this year many online platforms began to cooperate with major offline channels to achieve a 3D shopping network. On the one hand, this model is conducive to improving the efficiency of online platforms. On the other hand, it will promote the development of offline platforms which shows a stagnant trend in these years. Second, Double 11 has been held in many areas. Except traditional commodity, service such as dining, travel and entertainment has been included into double 11 shopping spree. Therefore, the boundary of traditional retail gradually became blurred. Third, the spree will last one month. This will test the abilities of supply chain and value chain. Moreover, this can effectively alleviate the negative consumer behaviors such as impulse shopping. Fourth, major shopping platforms has paid more attention to low-tier cities to boost the consumption. Last but not least, the globalization trend has been further deepened during the spree. People in other countries can take part into the spree while people in China can buy commodity from other countries this year. As for consumers, the activities held on the eve of Double 11 are more interesting and colorful, so the engagement of consumers has been improved this year. For example, Tmall launched two rounds of getting bonus activities. In the first round, consumers obtained energy through online platforms such as Taobao, Youku, and Yuyu, as well as some offline channels such as RT-Mart, Sanjiang, and Auchan, and then they use energy to get bonus. The second round is Double 11 competition between teams. Teams can get bonus by sign in every day before Double 11. In addition, teams can play different kinds of games online to gain bonus. As the engagement of offline shops, many consumers have received coupons from the coffee shop. When people wait for the start of the spree during the late night, they can order fresh coffee with coupons and the coffee will be sent to them immediately. Therefore, consumers feel more comfortable and happier this year. Logistics is also an important part during Double 11. In response to the logistics peak during the spree, the State Post Bureau has formulated a work plan, mobilized enterprises and allocated more national resources to improve the efficiency of logistics. Major logistics companies have adopted a two-layer automatic sorting system. Compared with the single-layer automatic sorting system which has a processing capacity of 20,000 pieces per hour, the double-layer automatic sorting system has a handling capacity of 40,000 to 60,000 pieces per hour, greatly strengthening the capability of addressing the express. In addition, various logistics companies have adopted a green development model. During the double eleventh period, the whole industry added 1234 new energy vehicles and added 4600 sets of intelligent express cabinets. Through the use of electronic sheets, recycling boxes and transfer bags, 10,000 tons of paper has been saved. In conclusion, the digital economy has played an important role in Double 11 and will be an important engine for Chinese economy to achieve the upgrade of consumption. Collective Equity Ownership Ltd. (CEO) is a secondary fund. We allow founders and shareholders of VC-backed companies to pool together their shares with other late-stage companies to diversify their portfolio. If you know any cool founders, or someone with a lot of experience, get in touch! We love meeting new people! ceo@collectiveequity.com |
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