The peak sales season has already arrived, particularly online. Big marketplaces like Amazon and Alibaba Group (the parent company of AliExpress) aim to be the e-commerce go-to of the year. Asian giant Alibaba is one step ahead of Western business events like Black Friday and Cyber Monday with the 11.11 Global Shopping Festival, formerly known only as 11.11 or Singles Day. In 2021, more than 290,000 brands will participate in the festival, 40,000 more than in 2020. Already well-established as a celebration of Chinese communism, it has become one of the most profitable festivals. Turnover has reached five times that of Cyber Monday.
This originally Chinese day of online commerce has arrived in Europe. Many e-commerce businesses and marketplace retailers are fine-tuning their pricing strategy to make the most of the day. A price monitoring tool is highly beneficial for these events as it allows you to track your prices and those of your competitors.
Origins of the 11.11 Global Shopping Festival
Although we have only recently become acquainted with singles day, this celebration dates back to the 90s. Four friends at Nanjing University in China decided to celebrate their single status by giving each other gifts. The idea was based on proclaiming freedom and independence in love. The chosen day was 11th November, due to the connection between the number 1 and single status in the Chinese alphabet. In 2009, this date left its assertive roots behind to become a global online selling event. The Alibaba Group, which registered the 11.11 brand to make it an e-commerce “awareness” event, is responsible for this change.
Today, the 11.11 Global Shopping Festival has become a business opportunity similar to Black Friday or Prime Day, when a wealth of deals with up to 70% discounts are on offer.
The Global Shopping Festival has arrived in Europe
The event has been around the world since AliExpress's parent company turned it into World Shopping Day and spread it across the globe. To strengthen its leadership position, the company has increased technological innovation investment to support its global and local logistics. It aims to improve shipping times and ensure international order deliveries within 10 working days, so it has announced several logistics solutions it is implementing in Europe.
As with notable moments that generate sales bonanzas, such as Black Friday or Prime Day, many online retailers are expected to take advantage of this business opportunity. For many businesses, 11.11 has been carving a niche as the day when November discounts begin, in the run-up to Black Friday. As occurred with Amazon Prime Day, the event began with a single retailer. However, it is beginning to be adopted by their competitors. This helps reduce the competitive advantage of the giants and helps businesses take advantage of consumers' willingness to buy.
One of the keys to increasing transactions at times of so much online traffic is to have a competitive pricing strategy that consumers perceive as attractive and beneficial. It is essential to use a solution that allows you to know and evaluate your pricing strategy in the market.
Results from previous editions of 11.11
This festival has grown steadily since it began in 2009. Last year it achieved its record with an estimated revenue of over £53,000 million, an increase of 48%. These figures create high expectations for the growth of this year’s festival. Given its track record, one could reasonably expect it to exceed these figures and maintain its upward trend.
In last year’s event, 31,000 of the 250,000 brands involved were foreign companies, with an estimated 2,600 taking part for the first time. This was also an increase on previous years.
You don't want to miss out on the opportunity to improve your pricing strategy for November’s sales peaks. We recommend that you find out how Minderest works and how it can help you increase your profitability.