What retailers in China could gain on Singles Day
Increased competition is, however, expected with several other retail festivals and shopping events.
Retailers in China could see gross merchandise value (GMV) worth up to RMB1t in this year’s Singles Day, but Bain & Company noted consumer loyalty may just be the better priority.
“Singles Day, even with the changes in consumer behavior, Covid and the impact of global macroeconomic conditions continues to be a priority for China retailers,” Kelly Liu, head of the Greater China Retail practice, Bain & Company, said.
“Singles Day and the 618 Festival still generated 12% of all online retail sales in China in 2021. However, the engagement is now being driven more by customer loyalty.”
Despite the potential RM1t GMV, Bain noted that China retailers need to strike a balance between promotions and long-term quality growth amidst increasing competition with live-streamed shopping events and online retail festivals.
In China’s Singles Day 2022: Loyalty’s a Better Goal than RMB 1 Trillion Sales report, Bain found that of the Singles Day shoppers in 2021, 34% said they plan on spending less on the event this year.
Only 24% said they were planning to spend more.
“China retailers have an opportunity to respond to the challenges found in Singles Day and the external environment,” James Yang, partner in the Retail practice, Bain & Company, said.
“By making the pivot from discounts to loyalty, retailers can win at Singles Day and gain engagement with consumers throughout the year.”