Merchants, e-commerce platforms gear up for 11.11 sales

Zalora, Hermo, Lenovo, Watsons and Nike are also offering up to 30% cashback via ShopBack on both its website and mobile app

by NUR HAZIQAH A MALEK/ pic by MUHD AMIN NAHARUL

PLAYERS in the e-commerce platform and retail industry are gearing up for major year-end shopping festivals, following the highly successful 9.9 and 10.10 sales.

Cashback app — ShopBack Malaysia country GM Eddy Han said during the 9.9 and 10.10 events, trends showed an upward shopping behaviour and expected the performance of 11.11 and 12.12 to increase by over fourfold.

“During 9.9, the number of transactions made with online merchants through ShopBack was about four times higher than on a normal day, while for 10.10, the number of transactions was over two times higher than a normal day.

“On average, each shopper spends between RM50 and RM150 on an online purchase, in line with the results of the sentiment survey we shared in September,” he told The Malaysian Reserve yesterday.

He added that over 90% of transactions were made via the mobile application, but only for goods purchases from marketplaces.

“For travel bookings, the ratio of desktop and mobile app purchases is almost 50 to 50 because shoppers seem to prefer the bigger screen when researching for their options, comparing reviews and deciding on more complex purchasing decisions such as accommodations,” he said.

With 11.11 coming, Alibaba Group Holding Ltd’s, Taobao was the first to release its coupons, called Hongbao, followed by Shopee’s teaser which was released on Oct 24, 2019. Lazada’s will release its teaser on Nov 1.

Lazada is expected to continue its “shoppertainment” strategy to attract a record number of participating merchants and consumers. Last year the e-commerce platform streamed its Super Show in collaboration with K-pop co-ed group, KARD.

AliExpress will, for the first time — enable merchants from Russia, Spain, Italy and Turkey to participate in the shopping festival.

Hopping on the 11.11 train, merchants like Zalora, Hermo, Lenovo, Watsons and Nike are also offering up to 30% cashback via ShopBack on both its website and mobile app.

At last year’s 11.11 festival, 11street recorded a sixfold rise in gross merchandise value, compared to the average day, whereby the total orders received during the 24-hour shopping festival were three times the daily average.

Shopee during the same event also hit 11 million orders, which represents a whopping 24-time increase from the first time the event was held in 2016.

These monthly shopping festivals beginning from September are heavily rooted in Taobao, a China-based e-commerce platform from Alibaba.

Alibaba recently launched the 11.11 Global Shopping Festival on Oct 21, bringing the event into its second decade while focusing on new consumption, business and contribution to a greener society.

Its marketplaces Taobao and Tmall president Fan Jiang said, the platform’s goal is to stimulate and support consumption demand and lifestyle upgrade via new brands and products.

“We will enable merchants in China and around the world to grow their businesses through data-driven product innovation and consumer insights, as well as leverage our recommendation technology and content-driven user engagement to delight consumers in urban coastal cities and less-developed areas of China,“ he said.

Over 70% of its market’s new active consumers come from less-developed areas of China.

In order to carry out its order for new consumption, over 200,000 brands are participating in the global shopping festival while one million new products are on offer.

Alibaba Group CMO Chris Tung also said its new customer acquisition growth shows its success in focusing on less developed markets in China.

“We are equally driven to help local enterprises and factories digitise, which improves their operational efficiency and ability to engage with customers across the country,” he said.

The cross-border online marketplace by Alibaba, Tmall Global will boast over 22,000 international brands from 78 countries and regions during this year’s 11.11 inception.