Tag Archives: online shopping

China’s Singles Day Sales Tops $14.3B

Alibaba

It was another record-shattering shopping day in China on 11.11 when sales on Singles Day in China topped $14.3 billion.  What appears to be the Super Bowl of shopping, Singles Day holiday growth is credited to ecommerce giant Alibaba who had more than 10,000 international brands registered to participate this year. This is a huge increase; in 2009, there were only 27 merchants participating. While there were numerous global brands participating (i.e., Uniqlo, Adidas, Nike, Costco, Walmart, Amazon), the biggest winners were undoubtedly the Chinese brands.

New this year was a 3-1/2 hour television variety show that kept shoppers glued to their chairs and involved home shoppers even more deeply in the event. Seen as a combination of the Grammys, Oscars, game shows, home shopping network, and New Year’s Eve, sales reached $5.5 billion in the first 90 minutes, and surpassed $9.3 billion at the 12-hour mark.

Singles Day began decades ago as Bachelors Day, a Chinese holiday where single men shopped and partied to hold their blues at bay. In 2009, Alibaba put its might behind the day and turned it into a manufactured shopping holiday in China, going so far as to trademark the 11/11 name.

The next step – delivering 310 million packages!

Group Activities and Discussion Questions:

  1. Discuss the growing importance of Singles Day in China. Discuss the implications for U.S. companies.
  2. Show videos about Singles Day and Alibaba:

https://1111.tmall.com/?spm=875.7789098.2015001.1.bo0cFL&acm=lb-zebra-17931-417354.1003.4.517690&scm=1003.4.lb-zebra-17931-417354.OTHER_1_517690

https://youtu.be/QkSrD3A9QHA

https://youtu.be/3xxNlzUh56k

https://youtu.be/0IHptZJiBFk

  1. Also, show Alibaba, Taobao, and Tmall Web sites. (There are translators for the sites.)
  2. Discuss the growth of mobile devices for shopping. What are the implications for companies?
  3. Divide students into teams. Have each team select an ecommerce site and develop and outline for how the site can be effective on mobile devices.

Source: New York Times, Wall Street Journal, MarketWatch, CNBC. Brandchannel.com, Ad Age Daily, other news sources

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China’s Singles Day Sales Tops $9.3B

SinglesDay

It was a record shattering shopping day in China on 11.11 when sales on Singles Day topped $9.3 billion!  The shopping holiday growth is credited to ecommerce giant Alibaba who had more than 27,000 merchants registered to participate this year. This is a huge increase in only five years; in 2009, there were only 27 merchants participating. In a day that broke records, perhaps the most important statistic is that roughly 43% of all purchases were made on mobile devices.

While there were global brands participating (such as Uniqlo, Adidad, Costco, Walmart, and even Amazon) the biggest winners were undoubtedly the Chinese brands. Chinese smartphone company Xiami alone generated $163 million in sales before noon. (Compare this with Xiami’s sales last year at $89.9 million for the entire day.)

Singles Day began decades ago as Bachelors Day, a Chinese holiday where single men shopped and partied to hold their blues at bay. But in 2009, Alibaba put its might behind the day and turned it into a manufactured shopping holiday in China. Sales have increased more than 5,000% from 2009 to 2014. Can it go higher?

Group Activities and Discussion Questions:

  1. Discuss the growing importance of Singles Day in China. Discuss the implications for U.S. companies.
  2. Show videos about Singles Day and Alibaba:

http://nyti.ms/SxPHEm

http://bcove.me/cxqoqkqt

http://video.cnbc.com/gallery/?video=3000329317

http://video.cnbc.com/gallery/?video=3000329317

  1. Also, show Alibaba, Taobao, and Tmall Web sites. (There are translators for the sites.)
  2. Discuss the growth of mobile devices for shopping. What are the implications for companies?
  3. Divide students into teams. Have each team select an ecommerce site and develop and outline for how the site can be effective on mobile devices.

Source: New York Times, Wall Street Journal, MarketWatch, CNBC. Brandchannel.com, Ad Age Daily, other news sources

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Online Retailers Move to Brick-and-mortar

3Although online retail sales continue to grow, it still only represents about 5.4% of all shopping in the U.S. This is one of the factors that can drive Web-based businesses into the world of brick-and-mortar stores. Other factors include distribution, high demand, fashion, and the customer’s desire to physically touch the merchandise. Online vendors can do great business, but are only reaching 85% of all shoppers. That’s a lot of market to ignore and Internet-based businesses are taking notice and moving to the physical world.

Example: These factors helped pushed Internet-based eye wear vendor Warby Parker to move from their online store to establishing physical locations using showrooms, pop-ups, and mobile trucks, and finally a permanent store front in New York. Warby Parker has joined other Internet vendors into the physical store arena – Piperlime (owned by Gap) also has a store in New York where it offers some of the clothing sold on its Web store.

The upside for vendors is that when they can get shoppers touching the product and interacting with their employees, it helps build a strong brand experience in the consumer’s mind. Companies are finding that consumers who make a first purchase in the store are likely to make future purchases online. It’s a win for the Internet and a win for the brick-and-mortar stores – giving retailers and consumers the best of both worlds.

Group Activities and Discussion Questions:

  1. Start with a discussion of online shopping vs. brick-and-mortar shopping. Have students list 10 factors that influence the location of their shopping.
  2. What are advantages of retailers that only online? Brick-and-mortar? What are disadvantages?
  3. Bring up Warby Parker’s and Piperlime’s Web site: http://www.warbyparker.com, http://www.piperlime.com.
  4. Discuss Warby Parker with students: Key message, target market, value, company strategy, pricing, etc.
  5. Divide students into teams: Have teams research online and examine other online-only businesses. What are factors that the company should consider for moving to physical locations?
  6. Have each team select an online business and develop a marketing plan for moving the business to brick-and-mortar. How can this integrate with the company’s online store?

Source:  Brandchannel.com, 5/28/13

 

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