Social commerce delivers world record on Singles Day

Forget Black Friday or Cyber Monday. The biggest online retail day of the year is now Singles Day in China.

Falling on 11 November, so that even all the digits in the date are singles, this is the world’s largest one-day sales event. This year it set a new 24-hour record for retail sales, clocking up an astonishing AU$60 billion by lunchtime. That figure is even more impressive when set against a sluggish global economy weighed down by uncertainty surrounding the US-China Trade War.

So what are Chinese retailers doing differently? They’re rethinking the traditional ecommerce model and putting social at the heart of the experience.

Social commerce leverages organic and paid influence to capture user attention and stimulate purchases. This is one of the most disruptive trends in years. It’s booming in China due to high social media penetration rates, changing consumer behaviour and the extensive reach of ecommerce.

Alibaba started its countdown to the 24-hour festival with a televised and live-streamed Taylor Swift performance. This was followed by live-streamed marketing of more than 1,000 brands through Taobao, TikTok and other platforms. Partnering with influential live-streamers also helped connect shoppers back to their e-commerce site and close the loop.

It’s a strategy that’s growing exponentially because it works. Online publisher Digital eCommerce 360 reported that Taobao live-streaming generated more than US$15.1 billion in gross merchandise value on Singles Day 2018, up nearly fourfold from 2017.

The pivot towards social commerce will force retailers to rethink the traditional ecommerce model and find new ways to approach their direct to consumer presence.

Understanding the power of word-of-mouth and influencer recommendations, the rise of casual shopping, the role of artificial intelligence and machine learning in curating product has never been more important.

Content, Conversations and Commerce – WPP on Social Commerce in China is a great tool to help you understand and navigate this complex new reality. It provides in-depth insight and analysis of traditional players and emerging platforms within the social commerce landscape, with examples of how retailers are unlocking new and emerging market opportunities in China.