With increased platform subsidies and government incentives, shopping channels are becoming more diverse. Can the early launch of “Double Eleven” lead to a boost in consumer spending?
This year’s “Double Eleven” shopping event kicked off earlier than in previous years, with major platforms ramping up their subsidies and introducing innovative rules. The introduction of government trade-in subsidies adds a new dimension to the shopping extravaganza, providing fresh opportunities for consumers and smaller merchants alike.
“I feel like this year’s ‘Double Eleven’ is stretching out, almost merging with the National Day holiday,” said Wang Dan, a consumer from Chongqing who is enthusiastic about online shopping. While he noted a lack of the usual festive frenzy, he sees several new highlights that are hard to ignore.
The combination of the “Double Eleven” shopping event with various consumer-boosting policies is viewed as a crucial opportunity to enhance overall consumption. Industry experts suggest that the platform that launches “Double Eleven” first may benefit from a significant uptick in sales.
In response to this backdrop, platforms are racing to be the earliest participants. A notable change this year is on Taobao and Tmall, which began their pre-sale events on October 14, ten days earlier than in previous years. JD.com and Pinduoduo launched their events nine and six days earlier than in 2023 and 2022, respectively. Observers noted the urgency reflected in the actions of these platforms.
Increased subsidies and innovative rules are key themes this year. For the first time, Pinduoduo introduced a “100 Billion Consumption Coupon” initiative and enhanced its “super double subsidy” offer, transitioning from a promise of “buying expensive means compensating” to “double compensation for overpriced items.” Meanwhile, Tmall announced it would offer an additional 300 billion yuan in coupons and red envelopes on top of its standard discounts.
A particularly noteworthy change is the government’s introduction of trade-in subsidies, prompting consumers to comment on the “real charm” of lower prices for appliances. With a 20% government subsidy combined with Tmall’s promotional efforts, prices on the platform could drop to as low as 60% of their original cost. Companies involved confirmed that as an official platform for government subsidies, they aim to enhance customer experience by collaborating with brands and financial institutions.
Zhang Yuang, chief of the “Double Eleven” event at a comparison shopping site, remarked that the government’s push for trade-in subsidies serves as a crucial engine for consumer spending this year. He noted that various local governments are rolling out their own consumption coupons to cater to diverse consumer needs, and platforms are responding with greater subsidies to stimulate user engagement.
Beyond enhanced subsidies, innovation is also evident in business rules. Yaowang Technology has upgraded multiple facets of its operations, including product selection, livestreaming strategies, content creation, and channel integration. For instance, during October 12-14, Yaowang’s hosts collaborated with over 300 product selectors to stream live bargain sales, rapidly updating merchandise and providing a broader array of options, addressing previous challenges of monotony.
The shift from “building walls” to “breaking down walls” is another significant trend this year. In September, Taobao began accepting WeChat payments, marking a milestone in cross-platform connectivity.
“Since Taobao and Tmall integrated with multiple internet platforms, we’ve seen swift growth in usage among young and down-market consumers,” said Wu Jia, president of the Taotian User Platform Division. He emphasized that payment integration is just the first step, with plans for deeper collaboration in the future.
Internet analyst Ma Jihua pointed out that for WeChat users, shopping on Taobao has become more seamless, which will likely influence the design of promotional activities. An enriched and more accessible purchasing landscape could attract new user segments, including university students and older demographics who prefer WeChat payments.
On October 16, JD Logistics announced its collaboration with Taotian Group, allowing merchants on Taobao and Tmall to utilize JD’s delivery services. As both companies work to integrate systems, consumers will soon be able to track JD deliveries directly through the Taobao and Tmall apps.
Industry insiders emphasized that the transition to “breaking down walls” offers consumers more choices and grants smaller merchants better access to reach customers, which may bolster consumption growth.
As livestreaming for e-commerce gains traction, concerns have arisen over misleading promotions from some influencers, prompting a call for improved quality in livestream sales. This focus on “quality livestreaming” has become a salient aspect of this year’s “Double Eleven.”
“We may witness a significant turning point in livestreaming commerce, evolving towards a more orderly and transparent operational model, heralding a new opportunity for ‘quality livestreaming,'” remarked a spokesperson from a major livestream platform.
On the night of October 14, Tmall’s “Double Eleven” presale commenced. Notably, Li Jiaqi’s livestream once again showcased domestic brands, with many quality products attracting consumer interest and achieving record sales figures, showing over a 20% year-on-year increase in orders.
Experts argue that as livestreaming commerce matures, establishing stable and sustainable business models is essential. Future developments should emphasize quality, leveraging livestreaming to foster new consumer trends, with leading enterprises setting examples to guide the industry towards positive energy. A successful quality livestreaming model, synergizing professional hosts, branded products, and quality platform services, is expected to become the industry standard.
