Luxury brands hit China’s Singles Day

As the name suggests, Singles’ Day began as a day for single people – apparently a chance to celebrate for the singletons, or «bare sticks», symbolised by the four number ones in the date of 11 November – 11/11.

But in 2009 the online retail firm Alibaba adopted the day to promote a massive online shopping sale. It said the date was easy to remember, and conveniently placed in a consumer spending lull between National Day and Chinese New Year holiday.

Singles’ Day rapidly became a hit. Other online retailers began cashing in, and Alibaba copyrighted the term «Double 11».

Singles’ Day is becoming increasingly popular for consumers hunting for deals on premium and even luxury brands.

This year, spending is expected to increase by 22 percent to 1,760 RMB (US$276) per shopper, according to Nielsen. Online shoppers will be able to choose from around 6 million products this year being sold by 40,000 merchants and 30,000 brands. And although the day is most known for bargain-basement discounts on mass-market items, e-commerce platforms’ push toward including more premium brands means that Singles’ Day is offering an increasingly diverse selection of high-end goods.

Chinese consumers are increasingly willing to purchase luxury online. A recent survey by market research firm KPMG found that the average maximum amount Chinese consumers are willing to pay online for a single item skyrocketed from 1,900 RMB (US$298) in 2014 to 4,200 RMB (US$660) this year. According the results of a survey by research firm YouGov, 44 percent of Chinese consumers planning to shop for Singles’ Day have set a budget of 1,000 (US$157) to 7,000 RMB (US$1,100), while 7 percent plan to spend 7,000 RMB or more. Singles’ Day will prove especially lucrative for premium and luxury fashion brands, as YouGov found that “apparel, accessories, shoes, and bags” is the most popular category that Chinese consumers are planning to buy, with 64 percent listing the category.

We have to point out that Singles’ Day shopping is mainly being shaped by the mobile shopping revolution that has overcome China’s e-commerce market. According to YouGov, 61 percent of Singles’ Day shoppers plan to use their smartphones to buy goods, while only 46 percent will use laptops.