Digital economy of healthy consumption on Nov 11

Since the 13th Five-Year Plan, China’s consumption has contributed more than 60% to economic growth on average, becoming the main driving force of economic growth. Behind the growth of the consumption scale and the continuous consolidation of the upgrading consumption trend is a strong support for the development of digital and intelligent innovation.

From consumers buying whatever businesses sell, to businesses producing whatever consumers want, large e-commerce companies have built an “intelligent manufacturing platform” through the “C2M (user directly connected to manufacturing)” mode, feeding the industry with data, technology and creativity gathered online, so as to promote innovation, reduce costs and strengthen weak links. During this year’s “Double 11 shopping festival”, the digital and intelligent production mode represented by C2M achieved great success. Among them, the sales volume of JD C2M products reached 1.7 times that of last year, and many C2M products became the first in sales volume in their respective categories.

Strong domestic demand momentum is accelerating financial recovery for enterprises. According to statistics, Tmall’s “Double 11 shopping festival” led 2,000 industrial belts and 1.2 million merchants across the country to participate, and the turnover of 105 industrial belts exceeded 100 million yuan. Among them, 380,000 businesses from poor counties participated in selling 410,000 agricultural products from 1,406 counties, and the turnover of businesses in poor counties increased by 74 percent year on year.

From November 1, 2021 to November 11, 2021, the total transaction volume of Tmall “Double 11 shopping festival” commodities reached 540.3 billion yuan, a new high, up by 8% from 2020; JD “Double 11 shopping festival” commodity transactions reached 349.1 billion yuan, up by 29% from 2020. By comparison, Tmall’s turnover was just 268.4 billion yuan in 2019.

In 2021, domestic goods were given the spotlight by the “Double 11 shopping festival”. From 0:45 on November 1 to 11，382 brands have sold more than 100 million yuan on Tmall’s ” Double 11 shopping festival”. Both new and old domestic brands were immensely popular, such as Huawei, Erke, Pechoin, Warrior, Bananain and Tineco.

Due to the epidemic, the Double 11 shopping festival in recent years has attracted even more attention than before. At a time when the public generally believes that the traffic dividend of e-commerce has peaked, the epidemic has reshaped the consumption habits of relatively elderly shoppers and brought a new group of users to online shopping platforms. This contradictory growth trend is the great achievement of the Chinese people in their collaborative fight against the epidemic, and provides strong domestic demand support for the new “double cycle” development pattern.

Since the establishment of the festival, Double 11 shopping festival has gone through 12 years. From 2009, the sales were only 52 million yuan and 27 brands participated. Now, all platforms participate in the event, and Tmall alone has attracted more than 800 million consumers, 250,000 brands and 5 million merchants to participate. From this perspective, the long duration of 11 days seems to be more consistent with the transformation of a “carnival” into a “carnival season”.

Today, the Double 11 shopping festival has become a label, reflecting on the profound impact of e-commerce on people’s lifestyle, and providing a new development path for enabling consumption upgrading and tapping into consumption potential.

In the Internet age, traffic is resources. Last year’s Double 11 shopping festival was no exception, and it was better in drainage, giving full play to the advantages of e-commerce.

The pre-sale of the Double 11 shopping festival opened in the early morning of October 21. In 2021, many platforms introduced the live streaming mode, bringing traffic and stimulating consumption by having Internet celebrities sell goods live. Data show that at around 2 am on 21,2021, Li Jiaqi’s livestream was watched by about 160 million people. According to data analysis platform Zhigua, Li Jiaqi ranked the first on the first day of the Double 11 shopping festival, with estimated sales of 10 million items and estimated GMV (total transaction) to reach 3.911 billion yuan.

In addition, during the Double 11 shopping festival in 2021, in order to stimulate consumption, Tmall, JD and other platforms held several shopping carnival evening shows, which many hosts and stars participated. According to the third-party company Kuyun, responsible for monitoring real-time ratings, as of 23:22 on November 10, “2021 Tmall Double 11 carnival night” in Dragon TV, Zhejiang Satellite TV double platform market share exceeded 13, greatly ahead of other parallel national programs.

These seemingly varied “operations” have really added a lot of “heat” to the market that has been cold for nearly half a year, and once again injected new energy into the Double 11 shopping festival in the way of public opinion guidance.

With the continuous breakthrough of sales scale, consumption has gradually shown some new trends, new changes. From the perspective of consumption structure, during the Double 11 shopping festival in 2021, the public’s attention to health consumption and service consumption has significantly increased, and the trend of consumption upgrading is obvious. From the perspective of consumption mode, new consumption modes such as livestream selling of goods have exploded in popularity, while the integration of online and offline has accelerated.

On last year’s Double 11 shopping festival, Tmall released a carbon reduction plan for the Double 11 shopping festival, launching its first green venue, offering 500,000 new green goods, and issuing 100 million yuan in green consumption subsidies. Data show that more than 2.5 million people bought green goods during the Double 11 shopping festival.

Jd also mentioned that one of the major features of JD’s ” Double 11 shopping festival” is being green and sustainable, saying that JD Logistics and its partners can reduce carbon bills behind every package received by consumers by using reduced packaging, recycled packaging and recycling materials.

During the Double 11 shopping festival, JD Logistics’ green supply chain reduced carbon by 26,000 tons and used 11.35 million circular packaging.

Affected by the epidemic, “health consumption” is warmly welcomed by the country. Within the initial half hour after the festival’s commencement on November 11, 2021, the turnover of JD masks reached eight times that of the full day’s sales last year, the transaction volume of blood glucose meters increased by 20 times, and the turnover of contact lenses increased by three times. On November 1, the sales of the Suning Tesco cutting tool and cutting board disinfection machine increased by 543% year compared to the previous year, and the sales of large-volume sterilizing and drying washing machines increased by nearly 200% year on year.

The public’s demand for quality consumption is rising, which drives the rapid sales of middle and high-end upgrading products and services consumption. The rural market also shows the trend of consumption upgrading. According to the big data of JD, in the pre-sale period of the Double 11 shopping festival, the pre-sale orders in the rural market increased by 126% year on year, surpassing the first-tier market.

With Tmall’s 2022 Double 11 shopping festival getting closer and closer, have you gotten yourself ready for this grand event?

Every year, the Double 11 shopping festival is a war without gunfire. Since industry interconnection, merchants no longer stand sides for a single e-commerce platform, and multi-channel construction has become the main theme. Resource redistribution, the major e-commerce platforms devise various surprising tactics in order to win more attention from businesses.

On this year’s Double 11 shopping festival, Taobao, JD, TikTok, Kuaishou and other companies have launched merchant policies and subsidies in advance, and a new battle for merchants has begun.