Ecommerce Marketing as a Tool for Inventing Consumerism: the Case of "Single's Day" as a Lesson for Diwali
Once again, Diwali, or the Hindu Festival of Lights, is upon on us, and just as Hindu community around the world does, the Malaysian Indian community is busy reuniting with families and friends while everyone in the country is enjoying a couple days of public holidays even though they have literally nothing to do with this particular religious event. But while the Indosphere indulge in some wholesome family gatherings, something remarkable just happened in China: on Nov. 11th, ecommerce portal Tmall set an all-time world record for one-day sale by a single site by raking in 3.1 billion USD.
You may wonder what does this sales record have anything to do with Diwali...and on the surface, it really does not. No one at this day and age would be surprised by massive sales growth in China, where online population is massive, the government encourages cyberspace for business purposes (although clearly not for others), and the middle class' disposable income still grows year after year. And to add on to that, Taobao, Tmall's parent company, owns a whopping 49.5% of ecommerce market share in China. It is little wonder that the sale figure is so staggering.
However, what IS incredibly surprising is that this 3.1 billion USD one-day sale happened not on China's traditions dates of heavy consumption such as Chinese New Years or Mid-Autumn Festival, but on a "holiday" that is almost completely unknown outside China called "Single's Day." Originally started by university students in the early 1990s to celebrate singlehood (as "11.11" seems to denote visually), it quickly evolved into a national commercial holiday in which young people spend lavishly to greet their single friends or attempt to end their singlehood through blind dates.
Businesses are quickly grasping the potential revenues associated with the annual celebration of singlehood. Even though it is not a public holiday, students and young white collars, as they would on any romance-related holidays, lure them into parting with their cash after class/work. E-tailers have been especially aggressive in turning the day into a significant event in the annual shopping calendar, jostling each other to give the most startling discounts and sales to promote themselves with the young, tech-savvy, and happy-to-spend netizens. their success is reflected in the sales figures of Nov 11th.
In contrast, it has been quite disappointing, to say the least, to see just how there was a complete lack of a surge in sales in the days leading up to Diwali here in Malaysia where the Indians make up the second largest segment, after the Chinese, of the vibrant middle class. From a business point of view, all the factors for spending are there. There are government holidays that give plenty of time to buy, there are family reunions that give plenty of reasons to buy, and there are plenty of both online and brick-and-mortar shops out there that give plenty of outlets to buy. So, why no temporary increase?
It says much about the lack of marketing power on the part of both online and offline retailers in Malaysia. As just mentioned, there is plenty of potential for massive spendings during the days leading up to Diwali, yet there has been little effort to enthusiastically entice the Indian population to spend, Up until now, the spending power of the Festival of Light is still too concentrated in the local mom-and-pop shops well-acquainted with their Indian neighbors, and the content of the spending is still too focused on immediate needs for celebrations such as food and decorations.
This is a result, in particular, of e-tailers in general not focusing enough of their marketing on Diwali with unique campaigns and specific targeting. Seasonal contents, targeting Indian family needs, with special promotions, need to be generated, much in the same way e-tailers in China vigorously rallied with competitive sales targeting the urban single youth population on Nov 11th. These specific marketing targeting specific people on specific days can drive "spikes" in sales that, in the long term, may be much more cost-effective than over-encompassing generalist advertising exposure.
A culture of consumption for any particular occasion does not simply come into being due to tradition and/or because a population becomes wealthier. Such culture ultimately comes into existence because of slow but steady cultivation on the part of the sellers who seek to utilize the occasion for greater profiteering. As Single's Day sales in China reminds those of us working in ecommerce, unbelievable opportunities can originate in what seems like absolutely nothing. Yet to succeed because of such hidden opportunities requires keen discern. Perhaps that discern can be utilized for Diwali soon...
You may wonder what does this sales record have anything to do with Diwali...and on the surface, it really does not. No one at this day and age would be surprised by massive sales growth in China, where online population is massive, the government encourages cyberspace for business purposes (although clearly not for others), and the middle class' disposable income still grows year after year. And to add on to that, Taobao, Tmall's parent company, owns a whopping 49.5% of ecommerce market share in China. It is little wonder that the sale figure is so staggering.
However, what IS incredibly surprising is that this 3.1 billion USD one-day sale happened not on China's traditions dates of heavy consumption such as Chinese New Years or Mid-Autumn Festival, but on a "holiday" that is almost completely unknown outside China called "Single's Day." Originally started by university students in the early 1990s to celebrate singlehood (as "11.11" seems to denote visually), it quickly evolved into a national commercial holiday in which young people spend lavishly to greet their single friends or attempt to end their singlehood through blind dates.
Businesses are quickly grasping the potential revenues associated with the annual celebration of singlehood. Even though it is not a public holiday, students and young white collars, as they would on any romance-related holidays, lure them into parting with their cash after class/work. E-tailers have been especially aggressive in turning the day into a significant event in the annual shopping calendar, jostling each other to give the most startling discounts and sales to promote themselves with the young, tech-savvy, and happy-to-spend netizens. their success is reflected in the sales figures of Nov 11th.
In contrast, it has been quite disappointing, to say the least, to see just how there was a complete lack of a surge in sales in the days leading up to Diwali here in Malaysia where the Indians make up the second largest segment, after the Chinese, of the vibrant middle class. From a business point of view, all the factors for spending are there. There are government holidays that give plenty of time to buy, there are family reunions that give plenty of reasons to buy, and there are plenty of both online and brick-and-mortar shops out there that give plenty of outlets to buy. So, why no temporary increase?
It says much about the lack of marketing power on the part of both online and offline retailers in Malaysia. As just mentioned, there is plenty of potential for massive spendings during the days leading up to Diwali, yet there has been little effort to enthusiastically entice the Indian population to spend, Up until now, the spending power of the Festival of Light is still too concentrated in the local mom-and-pop shops well-acquainted with their Indian neighbors, and the content of the spending is still too focused on immediate needs for celebrations such as food and decorations.
This is a result, in particular, of e-tailers in general not focusing enough of their marketing on Diwali with unique campaigns and specific targeting. Seasonal contents, targeting Indian family needs, with special promotions, need to be generated, much in the same way e-tailers in China vigorously rallied with competitive sales targeting the urban single youth population on Nov 11th. These specific marketing targeting specific people on specific days can drive "spikes" in sales that, in the long term, may be much more cost-effective than over-encompassing generalist advertising exposure.
A culture of consumption for any particular occasion does not simply come into being due to tradition and/or because a population becomes wealthier. Such culture ultimately comes into existence because of slow but steady cultivation on the part of the sellers who seek to utilize the occasion for greater profiteering. As Single's Day sales in China reminds those of us working in ecommerce, unbelievable opportunities can originate in what seems like absolutely nothing. Yet to succeed because of such hidden opportunities requires keen discern. Perhaps that discern can be utilized for Diwali soon...
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