Single-minded An excuse to shop
November 11 is a big day for Chinese shoppers, Al Williams explains.
As the world’s largest online shopping day approaches, New Zealand’s Chinese community is preparing to join the fray.
Millions of people across China will spend billions of dollars in a online shopping frenzy known as Singles Day, November 11.
It’s a day which gives singletons licence to spoil themselves and in Auckland, Kristen Yang and Emily Zhou were looking forward to it.
They planned to spend it eating, ‘‘have a coffee with friends’’ and shopping online.
Figures from the New Zealand China Council show e-commerce giant Alibaba, which accounts for 80 per cent of the online market in China, made US$17 billion (NZ$24.5b) in sales during Singles Day last year.
This year the sales are predicted to be even greater, with experts suggesting China’s e-commerce boom presents huge opportunities for New Zealand businesses as well.
Chris Wilkinson of First Retail Group said Singles Day in New Zealand was still a largely Chinese experience, and stockists of luxury brands tended to do well, largely in Auckland and Queenstown.
But Chinese people tended not to talk it up. ‘‘They like to continue to celebrate their traditions but they also don’t like to be stereotyped.’’
Expat Kiwi Mark Tanner says Kiwi businesses wanting to enter the Chinese export market should give Singles Day serious thought.
Tanner, a Shanghai-based consultant for foreign brands in China, describes the event as ‘‘the most obvious example that capitalism and consumerism are alive and well in China’’.
‘‘I don’t think any other event symbolises it as well.’’
Singles Day’s origins are far removed from capitalism, as it was established by university students in Nanjing in the 1990s to celebrate their singledom.
There is symbolism in the equation: November 11 is written 11.11, or one-one-one-one, otherwise known as the ‘‘bare sticks holiday’’.
E-commerce jumped on board in 2009 and the event has since gone global.
Tanner says some brands will do half their annual sales on the day.
‘‘Most do between 10 per cent and 20 per cent of their annual sales on the day.’’
New Zealand is strong in the market, he says.
‘‘You are talking about massive figures.’’
Numerous online platforms, multiple websites, celebrities and marketing strategies were involved.
‘‘They are pretty advanced and make our domestic trading sites look pretty simple.
‘‘The margins are phenomenal.’’
Other used it as a ‘‘loss leader,’’ to get some marketing runs on the board.
‘‘It can be a good marketing day but a lot of people lose money.’’
Auckland Chamber of Commerce chief executive Michael Barnett says e-commerce spending in China is being keenly embraced, and that Singles Day is a serious opportunity.
‘‘All it’s doing is improving access into markets.
‘‘It cuts both ways, the small guy can’t afford to sit back and watch, otherwise it will pass.’’
New Zealand organic beauty brand Antipodes captialises on the day, selling through an e-commerce platform.
‘‘The Chinese consumers love products from New Zealand,’’ Antipodes digital marketing specialist Katrina McClelland says.
‘‘We have been planning for Singles Day 2018 since early July. This is our third year on 11.11 and it will be our best yet as we are expecting to double the revenue from last year, if not more.’’
You are talking about massive figures ... The margins are phenomenal. Mark Tanner