Serve consumers well to make them lead growth
Unlike the dramatic US presidential election or the surprising Brexit vote, one can almost be sure about another massive surge in Singles’ Day sales this year. Since online shopping has become so popular in China, more and more international brands and retailers are participating in the shopping festival that Nov 11 has become to cash in on the craze.
After a year-on-year increase of 54 percent in 2015, Fung Global Retail & Technology forecast that this year’s shopping frenzy would see a 40-percent increase to hit $20 billion.
That is a bold forecast. After all, US consumers spent only $5.8 billion online on Black Friday and its webbased CyberMonday last year. It is difficult to understand why Chinese consumers, with an average earning a quarter of their US counterparts, spent over two times more at their year-end shopping day. With little change in their incomes, will Chinese consumers be able to widen that expenditure gap to three-fold this year? Perhaps yes. Fung Global has based its 2016 forecast on a tailwind from Chinese online shoppers’ surging demand for overseas goods and high expectations from the extensive marketing campaign by China’s leading e-business giants like Alibaba, which would use virtual and augmented reality features this year.