As Singles' Day approaches, Alibaba is implementing new strategies to enhance the experience for both consumers and merchants. The event, which runs until November 11, 2024, has seen a significant focus on supporting sellers, with Alibaba committing 10 billion yuan (approximately US$1.4 billion) to help merchants navigate the competitive landscape. This year, spending from 88VIP members has surged by 60%, and the average spending per user has increased by 30% compared to last year, showcasing the effectiveness of these new policies. [dba58419]
One of the key changes includes adjustments to refund policies, which have resulted in 400,000 daily refund requests being rejected, aiming to streamline operations and reduce pricing pressure on sellers. Additionally, the Tuihuobao service has been introduced, which cuts return logistics costs by 30%, further alleviating financial burdens on merchants. Eddie Wu Yongming, Alibaba's CEO, emphasized a 'users first' strategy, indicating a shift towards prioritizing customer satisfaction while also supporting merchant profitability. [dba58419]
The Singles' Day shopping season, which kicked off early on October 14, 2024, has already shown promising results, with couriers collecting 729 million packages by October 24, 2024, a 74% increase from the previous year. The event has been characterized by a surge in domestic tourism and spending, with over 765 million domestic trips taken during the National Day holiday, leading to a tourist spending of 700.8 billion yuan (approximately US$99.11 billion), a 6.3% rise compared to last year. [966ae7c4]
In addition to these logistical improvements, Alibaba has rolled out its AI-powered digital marketing tool, Quanzhantui, which has been utilized by over 250,000 merchants, resulting in an average GMV increase of 66% on the first day of the promotion. This tool has played a crucial role in driving consumer engagement and sales performance, which is being closely monitored as the event progresses. [69e4f78d]
The emotional consumption trend among younger consumers continues to influence purchasing behaviors, with companies like Pop Mart reporting significant revenue increases driven by Gen Z's willingness to pay for products that offer emotional satisfaction. This shift in consumer priorities is reshaping how products are marketed and consumed in the current retail environment, with analysts expecting continued growth for brands that foster emotional connections with their audience. [aeba4b78]
As the Singles' Day event unfolds, industry experts, including InReady's Zhang, anticipate that sales could reach 100 million yuan, reflecting the overall optimism in the market. The express delivery sector is also experiencing unprecedented growth, with daily deliveries exceeding 430 million during this peak shopping season, indicating a vibrant logistics market and a warming domestic consumer market. [62ea3031]