Monthly Archives: November 2018

by | Wednesday, November 21, 2018 · 6:44 am

Singles Day 2018 – “11/11 Global Shopping Festival” Hits $30 Billion

Once again the world’s biggest shopping event has occurred. And, no, it’s not Black Friday and Cyber Monday. By far, the biggest shopping day of the year is on November 11, Singles Day, in China. The holiday originally began in 1993 by college students as a celebration for people who are single, chosen because of the connection between singles and the number ‘1’. November 11 now serves as an occasion for single people to party – and shop!

This year, sales (stated as Gross Merchandise Value – GMV) hit $1 billion in only 1 minute and 25 seconds! At the end of the first hour, the sales reached $10 billion! By the end of 24 hours, the sales were an astounding $30.8 billion!

There were more than 100 million items sold in 17 countries, with 180,000 brands participating. More than one billion packages are estimated to be shipping. Even more impressive is that a whopping 90% of sales were completed from mobile devices. Wow.

Singles’ Day is by far the largest shopping and entertainment festival in the world. Compare it to Amazon’s Prime Day at $4 billion, and Black Friday at $14 billion online to see the difference.

Singles’ Day has become an event on its own, including celebrities, fashion shows, TV galas, virtual reality, and augmented reality shopping. It started with a November 10 evening event with a live-streamed, star-studded gala show that drew in 240 million viewers (that’s the equivalent of one in five people in China). There was also interactive entertainment and sport via Alibaba’s app to increase audience and shopper participation.

Why is it so important for global brands to enter this shopping day? Consider that there are roughly 300 million middle-class shoppers in China, rising to an estimated 500 million in the next 10-15 years. While Singles Day may have originally started for lonely Chinese consumers, the shopping day now is seen as critical to driving China’s – and the world – economy.

If you are not familiar with Singles Day, there are many sources with information about the event and Alibaba, including the following:

Group Activities and Discussion Questions:

  1. Most students will not have previously heard of China’s Single Day. Discuss the shopping holiday and its importance in China.
  2. This is likely the first time students have heard about Singles Day. There are a number of videos that can help explain the event:
    1. What is 11/11?  https://youtu.be/bRv9qG75x2c
    2. Evolution of Singles Day: https://www.alizila.com/video/the-evolution-of-11-11/
    3. Highlights of 2018 event: https://youtu.be/W9JNfS0dAL0
  2. Discuss how this holiday compares to Black Friday and Cyber Monday in the U.S.
  3. How should U.S.-based companies participate in Singles Day?

Source: Wall Street Journal, New York Times, Forbes, CNBC, The Verge, other news sources

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by | Monday, November 19, 2018 · 6:56 am

Dunkin’ Drops the Donuts from its Branding

What’s the importance of a brand name? Brands have value. Brands help to define a company, its values and products, and branding builds an image in the minds of consumers. If a consumer hears “Nike,” or “North Face,” or “Luluemon” it immediate builds a picture in the consumer’s mind of that brand. So, when an established company undertakes rebranding, it had better be prepared for a lot of work and time to establish the new brand. The rebranding can be incredibly expensive and risky.

The latest rebranding is a move from “Dunkin’ Donuts” to just “Dunkin’.” The company claims that it has been on a first-name basis with its fan for a long time, and that its customers have long referred to the brand as Dunkin’, making this a natural fit. The original pink and orange colors of the logo, along with the original font, have been retained in the new logo, helping to retain the brand recognition.

Dropping the “Donuts” raises the question about whether Dunkin’ will be moving away from its core product in favor of a newer food menu (croissants, bagels?). The company claims that donuts are still a key focus for Dunkin’.

Dunkin’ isn’t the only brand to shorten its name. Recently, Weight Watchers shortened its name to WW, using the tagline “Wellness that Works” to help explain the rebranding. And, many people still erroneously refer to Kentucky Fried Chicken with its full name, even though it became KFC in the early 1990s.

It’s hard to change consumers’ habits.

Group Activities and Discussion Questions:

  1. Discuss the importance of branding.
  2. Using the Top 100 Global Brands list as reference, poll students about the top 10 global brands: https://www.interbrand.com/best-brands/best-global-brands/2018/ranking/.
  3. Which brands do they think have been able to gain mind share? How?
  4. View the Dunkin’ Donuts web site: https://www.dunkindonuts.com/en
  5. What should the company do to roll out the new brand standards to consumers?

Source:  Advertising Age, New York Times, other news sources

 

 

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by | Thursday, November 15, 2018 · 6:51 am

Sam’s Club Now Goes Cashier Free

Amazon isn’t the only company working on reinventing the retail experience. While the Amazon Go stores have captured consumers’ attention and shoppers at its cashier-less grocery stores, it’s not the only retailer interested in using technology to improve the customer shopping experience. Walmart recently announced that it is opening Sam’s Club Now, also cashier-less, in Dallas. The company describes its new store as a “technology lab that doubles as a live, retail club.” At 32,000 square feet it isn’t quite a compact store, but it is significantly smaller than the typical Sam’s Club store.

Similar to Amazon Go, in order to shop at Sam’s Club Now, members will need to use a Sam’s Club app that allows customers to scan UPC codes as they shop and check themselves out when done shopping. The app also includes smart shopping lists, in-store voice search and maps, augmented reality for new in-store experiences, and one-hour pickup.

Employees don’t go away – they instead shift to a new role called the Member Host. These associates are the face of the company and will use technology to help them serve Sam’s Club members better. Sam’s Club stated that the “future of retail is as much about people as it is about technology.”

If you’re in Dallas, check it out.

Group Activities and Discussion Questions:

  1. Discuss the use of innovation throughout retail.
  2. Review Sam’s Club Now announcement and video: https://corporate.samsclub.com/blog/2018/10/29/sams-club-now-reimagining-the-future-of-retail
  3. Compare this with Amazon Go: https://www.amazon.com/b?ie=UTF8&node=16008589011
  4. What are the similarities, and differences, between the two services?
  5. How should the two companies position against each other?

Source:  Advertising Age, New York Times, other news sources

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