Tag Archives: Mobile devices

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
  1. Discuss how this holiday compares to Black Friday and Cyber Monday in the U.S.
  2. 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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SiriusXM Buys Pandora

SiriusXM satellite radio provider is buying music streaming service Pandora for a $3.5 billion stock deal. The deal will create the world’s largest audio entertainment company. Why should SiriusXM buy Pandora? Because SiriusXM wants to gain people who listen to music but don’t want to pay for the premium SiriusXM service.

SiriusXM offers streaming without advertisements for $10.99 to $20.99 per month per car with up to 140+ channels, or streaming on any device for the same amount of $10.99 to $20.99 per month, or combine both options for all-access streaming. SiriusXM has 36 million subscribers in North America.

On the other hand, Pandora, which has 70 million active listeners (5.6 million who are paying members) can be used at no-cost as long as listeners don’t mind listening to advertisements. Or, listeners can buy monthly subscriptions at $4.99 or $9.99 per month for services that eliminate advertisements and offer personalized stations and create playlists, plus other options.

SiriusXM isn’t new to Pandora; it provided $480 million of funding to Pandora last year. Pandora faces stiff competition from other music services such as Apple Music, Amazon, Tidal, and Spotify.

The war to gain new listeners is heating up!

Group Activities and Discussion Questions:

  1. Poll students:How much music do they listen to each day? Where is their music coming from? How much do they pay each month?
  2. View SiriusXM: https://www.siriusxm.com/
  3. View Pandora: https://www.pandora.com/
  4. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  5. Which strategy is SiriusXM using? Why?
  6. Divide students into teams. Have each team research the different prices and packages offered by each music streaming company.
  7. Compare price structures. Which offers listeners the better deal?

Source:  Wall Street Journal, New York Times, other sources

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Fund-Raising with Healthy Options

We can usually tell when it is fund-raising season for schools and sports. Kids stop by houses and businesses, selling chocolate bars and other items to help fund a variety of programs and causes. And, although we happily buy and eat the candy, there can be some regrets over the empty calories, and the lack of sales going to local businesses. Wouldn’t it be better to offer healthy alternatives, and support local businesses? Of course! Enter a new company: FarmRaiser – connects fundraising groups with local products and foods.

FarmRaiser was founded in Michigan with a mission to connect local farmers and food artisans with schools, athletic teams, bands, and other causes. Vendors must meet standards for sustainable practices, and artisan products that do NOT list sugar as the first ingredient are welcome. The company states that “if a product has more than five or six ingredients, and if any of them are ones your grandma wouldn’t recognize it doesn’t make the cut.”

Campaigns are customized by working with a FarmRaiser “cultivator” to help determine fund-raiser goals, local products, and vendors. Each campaign also gets its own Web page on FarmRaiser.com. The company estimates that 85% of funds raised stays in the community; the average profit margin is 53% for the groups. The process is straightforward: once the cause is registered, FarmRaiser helps create a custom online and mobile market. At the end of the sale period, students help distribute the produce and products to their customers. Groups can choose various products and goods from multiple regions. Try combining Michigan cherries, with Texas Salsa.

What sounds good to you?

Group Activities and Discussion Questions:

  1. Discuss the fundraising activities that students might have done. Discuss what was it about, proceeds, products, process, etc.
  2. Introduce the topic of changing the product mix and sales process.
  3. Show a video about the company: https://vimeo.com/147806697
  4. Show Web site: https://www.farmraiser.com/
  5. Divide students into team. Have each team select a cause and develop a product set.
  6. Set SMART objectives for the company.

Source: Rieth, D. (Summer 2018). Home field advantage. Edible Michiana.

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