?? Is China's shopping festivals craze finally slowing down? ????
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Here are some future directions of China shopping festivals:?
Leverage with Technology Innovations
With the acceleration of technology development propelled by the pandemic and in the celebration of Tmall Luxury Pavillion’s 5th anniversary, Alibaba included not only an?augmented reality (AR) fashion show but also an immersive?extended reality?(XR) exhibition?enhancing customer’s experience?and creating credible values.??
Tmall also has their?virtual influencer?Ayayi partnering with more than 30 luxury brands such as Burberry, Prada and more in local marketing campaigns to build a?stronger community.
Video: LUXONOMY l?Alibaba Immersive Luxury Shopping In The Metaverse
Riding on the Rise of Live Streaming E-commerce
In the absence of physical retail, e-commerce platforms in China have implemented video calls and livestreaming to induce better?customer relationships. According to Alibaba, around?300 million users?had watched live broadcasts during 11.11 on Tmall alone and that the average daily viewership has increased by?561%?year-on-year.
Official live streaming channels of brands like Estée Lauder, La Mer, Lanc?me and Proya achieved over?$13.7million?in GMV. Moreover, as we anticipated in our previous newsletter, the opportunist live streamer?Luo YongHao?has reached?10 million viewership?in his debut on TaoBaoLive within the first?2 hours, proving the prominence of the?livestreaming.
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Building up on Customer’s Loyalty
With Bain’s 2022 Singles’ day report stating that pricing is not the priority?when it comes to customer recommendation and Alibaba’s data showing brand’s members contributing over?40% of brand’s growth?on Tmall. It is clear that it is crucial for brands to identify ways to retain?high-potential?consumers and build strong brand loyalty in order to achieve long-term?consistent growth.?
The shopping festivals can be seen as a prime time for brands to convert?consumer awareness?into consumer loyalty. In order to build?genuine differentiation?between brands, brand needs to?consider factors like unique products, unsurpassable experience, affluent content, and community interaction, leading to?increasing brand loyalty.
Conclusion:
Despite the fact that?shopping discounts are no longer exclusive during the shopping festivals and Chinese online consumers suffering from discount fatigue, shopping festivals are?unlikely to cease?in a short time. Instead, it will be simplified with the addition of?a more?multifaceted value?for the consumers in the future, evolving into a more?sophisticated process?of generating long term profits.
SOURCE:?BAIN,?THECHINAPROJECT,?ALIZILA?&?DAXUE
EXTRA READ:?ALIZILA