Tmall's "Double 11", Emerging "New Engine"

As an important window to observe the consumer market, various e-commerce platforms in this year's "Double 11" have launched a "low price" strategy, attempting to return to the essence of "big promotion" through platform subsidies, cross store discounts, and other means.On November 12th at midnight, the 2023 "Double 11" will end

As an important window to observe the consumer market, various e-commerce platforms in this year's "Double 11" have launched a "low price" strategy, attempting to return to the essence of "big promotion" through platform subsidies, cross store discounts, and other means.

On November 12th at midnight, the 2023 "Double 11" will end. The 15th year of "Double 11" with "low price" as its core strategy has handed over the "answer sheet"; The significant growth in user and merchant scale on Taobao and Tmall has led to a comprehensive increase in order volume and total transaction volume.

According to official data, the number of Tmall's "Double 11" users reached a historic peak this year, with a cumulative number of visited users exceeding 800 million; The price effect is significant, with users in the third tier and below markets placing 140 million more orders than last year. In terms of brand turnover, over 240 domestic brands have exceeded 100 million yuan, demonstrating strong explosive power; In addition, there are over 2 million small and medium-sized businesses with a year-on-year increase of over 100% in transaction volume, and a large number of "dark horses" have emerged in cycling, skiing, light health and other tracks, reflecting the diversity and vitality of the consumer market.

Dai Shan, CEO of Taotian Group, candidly stated that the price power advocated by Taobao Tmall is not to cause merchants to engage in vicious consumption, but to exchange for larger business scale through good prices. She said, "In order to better meet consumer demand, this year's Tmall" Double 11 "maintained a double-digit growth in 88VIP transactions, while focusing on user scale and order volume. Price power, merchant membership, and store live streaming have become new engines for platform transaction growth, and have also brought greater business scale to merchants

The "Double 11" is no longer just a "shopping carnival" for consumers, but also a period of development opportunities for businesses.

From 'Low Price' to 'Price Power'

If asked, what is the biggest difference between Tmall's "Double 11" this year? The answer given by Alibaba Mama and Marketing President Jialuo of Taotian Group is: "Taking this year's direct decline as an example, the platform operates through hierarchical groups of consumers, allowing each type of consumer to directly enjoy discounts on 'Double 11'. Making more precise designs for different groups has become the biggest difference in this year's' Double 11 '

Compared to previous years, this year's Tmall "Double 11" has emphasized price power more clearly from the beginning. In terms of overall pricing strategy, Tmall has cut down on the previous complex discount methods, and for the first time, has launched official discounts and daily low prices on a large scale on the basis of cross store full discounts. 80 million products have achieved the annual bottom price, and the "Double 11" full cycle has saved consumers over 95 billion yuan.

The price power effect brings about synchronous growth in user scale and merchant business. From the perspective of purchasing user scale, Tmall's "Double 11" has added over 20 million new purchasing users and over 140 million new orders in only the third tier and below markets this year.

In the eyes of merchants, 'low price' is no longer just about clearing inventory, but rather about maintaining price competitiveness while maintaining sustainable development. Vecvec, a new brand of ski wear, opened its Tmall flagship store in June this year. Prior to the ski season, it launched more than ten new products during the "Double 11" season, including snowboarding suits, snow helmets, snow goggles, and gloves. Its founder Tan Wen believes that although "Double 11" provides an environment for discounted shopping, from the perspective of our own brand, we need to ensure that our products have sufficient product strength in order to ensure sustainable development and investment. Our brand provides the best price that can be offered to consumers, allowing for a portion of profits and making everyone more passionate about participating in this sport

From 'Low Price' to 'Price Power'2

Three New Growth Engines Appear in "Double 11"

After proposing the "Price Power Campaign", Dai Shan announced three major strategies: "User First, Ecological Prosperity, and Technology Driven", with price power regarded as an important support for "User First". Before the "Double 11", Taotian Group had established a systematic low price capability starting from supply, traffic, mechanism, and ecology. Through a positive cycle of "good prices, good goods, user growth, sales growth, and business scale growth," Taotian Group achieved profits for merchants and benefits for consumers.

According to data from October this year, the average traffic growth of low-priced products on Taobao has reached 62.5%. During the "Double 11" period, the low price capability was upgraded again, and the traffic was immediately feedback after the product price was reduced, meeting the demand for rapid volume explosion during the promotion period.

In terms of merchant membership, as of midnight on November 11, Taobao Tmall has accumulated over 100 million new members for merchants, with a year-on-year increase of nearly 30% in the total platform merchant membership.

The continuous growth of merchant members has brought about a large number of transaction conversions. During the "Double 11" period, membership orders from Taobao Tmall merchants increased by over 100% for several consecutive days, with member groups contributing nearly 30% to multiple industries, including clothing; Regular repeat orders from customers have recorded double-digit year-on-year growth for several days, with industries such as clothing, fast moving consumer goods, sports and outdoor, and food experiencing a year-on-year growth of over 45%.

The development of store broadcasting has been more rapid. As of 0:00 on November 11th, Taobao has generated 58 live streaming rooms that have exceeded 100 million yuan, of which 7 influencers and 7 brand store broadcasts have exceeded 100 million yuan for the first time this year. Store broadcasting has become a new growth engine, with 38 transactions exceeding 100 million and 451 transactions exceeding 10 million.

The official flagship store of FILA Tmall's live streaming room sold over 100 million yuan four hours before the "Double 11" pre-sale, breaking the industry record and having iconic significance. Chiba Jewelry has become the first live streaming room in the Taobao Tmall jewelry industry to exceed 100 million yuan, with store broadcast penetration rate increasing from 5% a year ago to 38.9%.

In recent years, users' consumption decisions have become more rational, and the rich information and real-time interaction of live streaming e-commerce have increasingly become an important support for consumption decisions. The experts who undertake the task of marketing and grass planting live streaming cannot fully meet user needs, and it is also difficult for merchants to achieve sustained transaction conversion. On Taobao, store broadcasting can connect with merchants' private domains, forming a stable demographic asset, and is increasingly favored by brands and merchants.

Tao Fang, the general manager of Taobao Live, believes that the essence of e-commerce still depends on the quality of goods, prices, and services. If we return to this level, the professionalism of merchants can be reflected. He said, "In this market environment, live streaming with professional attributes will have greater development space

In this year's Tmall "Double 11", price power, merchant membership, and store live streaming have become three major new growth engines: the outbreak of price power and merchant membership is a direct reflection of the "user first" strategy, and both public and private domains have achieved the peak purchasing users of Tmall "Double 11" in the past 15 years; The rise of store live streaming is the result of the "ecological prosperity" strategy, opening up new core business positions for mature brands and small and medium-sized businesses.

The New Connotation of "Double 11"

As one of the main driving forces behind the macroeconomic rebound, the role of consumption is crucial. In the first three quarters of this year, the total retail sales of consumer goods in China reached 34210.7 billion yuan, a year-on-year increase of 6.8%; The contribution rate of final consumption expenditure to economic growth is 83.2%, driving GDP growth by 4.4 percentage points.

The "Double 11" is still an important time node in the consumer market. According to the 2023 "Double 11" Annual Research Report released by global consulting firm iResearch Platinum, this year "Double 11" is still the largest shopping festival in China. But as consumer confidence significantly rebounds, more and more consumers are becoming rational and pursuing product quality.

When the "Double 11" began to return to "low prices" and return to product quality, the market has moved towards "high quality and low price" competition. The industry believes that low prices are the form, and improving management, operations, services, and experiences beyond prices is the true direction to promote industry development and protect consumer rights.

Accenture, an international consulting firm, believes that for brand merchants, "Double 11" is no longer just a sales peak, but a special operational node that activates user interest, enhances user experience, and enhances user stickiness, becoming a more critical competitive factor. Therefore, brand merchants and platforms need to inject new connotations into "Double 11" and pay attention to the Daily Active User (DAU) indicator, Build long-term loyalty.

The New Connotation of "Double 11"

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