Inside China's Double 11 Marketing Spectacle: Trends and Takeaways

With the much-awaited arrival of Double 11, also known as Singles' Day, the Chinese market has been buzzing with excitement. The extraordinary shopping spectacle has become a key stage for marketers to reveal innovative marketing techniques aimed at capturing the attention of millions of consumers.

Building on the astounding success of last year's record-breaking 934 billion yuan ($128.25 billion) in sales, this year's event promises even more intriguing developments. 

Let's delve into the main tactics we're witnessing in China for double 11 this year and explore the invaluable lessons marketers can take away from these developments locally and beyond.

China's Singles' Day: what is it? 

Singles' Day stands as one of the largest global retail events, routinely surpassing the combined scale of Black Friday and Cyber Monday. Originating as Alibaba Group's 11.11 Shopping Festival in China, Singles' Day has evolved beyond its origins as a celebration of singlehood, now standing as a global retail phenomenon. For brands seeking to make their mark in the Chinese market, participation in Singles' Day is not just an opportunity but a necessity. The event has redefined the shopping experience, captivating millions of enthusiastic consumers year after year.

This year's Double 11 Innovative Marketing Landscape

With the commencement of the 11.11 Shopping Festival in late October, we've witnessed brands implementing a diverse range of innovative marketing strategies to capture consumer attention. The intense competition among not just the brands, but also the various platforms has urged the creation of compelling marketing campaigns that transcend conventional discounts, placing emphasis on crafting memorable and engaging experiences for shoppers.

Let's take a closer look at some of the new innovative marketing trends that are reshaping the landscape of the event in China this year.

1. Instalment Payment and Loan Services to Boost Sales

Platforms like Alibaba have introduced instalment payment and loan services to entice consumers, encouraging higher spending during the festival. During this year's Double 11 event, several Key Opinion Leaders (KOLs) endorsed the instalment payment and loan services provided by the platforms to consumers during their live streaming.

Key takeaway: As e-commerce platforms, exemplified by Alibaba, integrate instalment payment and loan services into the shopping experience during events like Double 11, marketers should recognise the nuanced relationship between financial incentives and consumer behaviour. While offering instalment options can stimulate spending, it necessitates a cautious approach due to potential risks. Understanding the delicate balance between financial accessibility and responsible consumer engagement is crucial for brands seeking to maximise sales without compromising long-term customer financial well-being.

2. Augmented Reality (AR), Metaverse for Virtual Try-ons

The convenience of shopping from home doesn't mean you have to give up 'trying before you buy'. Numerous beauty brands, for example, have integrated AR technology, enabling customers to test out makeup or hairstyles virtually. This advancement not only enriches the online shopping journey but also empowers customers, instilling greater confidence in their buying choices.

Example: Tapping into the success of the previous year, Tmall's introduction of virtual blocks allowed users to experience a three-dimensional virtual world, engaging them with brands' conceptual storefronts and popular entertainment content, amplifying the platform's appeal to its target consumers. Alibaba's metaverse shopping app, Taolive City, exemplifies China's progress into the metaverse, enhancing customer engagement through mission-based games and lucky draws, thereby elevating the overall online shopping experience while making it all a bit more fun.

Key takeaway: Beyond enhancing the customer journey, this technological advancement serves as a strategic tool to not only elevate engagement but also instil confidence in consumers when making purchasing decisions. Brands should recognise the transformative potential of AR, not merely as a feature but as a means to redefine the landscape of online shopping, fostering a deeper connection between consumers and products.

3. Gamification and Pre-sale Access

Numerous brands continue to incorporate games or challenges on their platforms during the festival, providing consumers with the chance to earn coupons, points, or even products. This gamification approach not only sustains shoppers' engagement but also extends the duration of their platform interactions.

To generate more excitement, brands frequently grant exclusive pre-sale access to their most loyal customers or those who have triumphed in specific challenges, offering them a preview or first access to enticing deals before the festival commences officially.

Example: A well-known case was from last year when L’Oréal Travel Retail Asia Pacific China spearheaded a metaverse campaign for Viktor&Rolf featuring virtual versions of popular KOLs. It marked a brand first, with Chinese KOLs CallmeVila, IamReddi, and 虚拟人AliCE sharing their experiences via their virtual counterparts. The campaign included a Viktor&Rolf Douyin challenge that drew over 42,000 participants and amassed an impressive 126 million impressions.

Key takeaway: As illustrated by L’Oréal Travel Retail Asia Pacific China's ground breaking metaverse campaign, integrating virtual versions of popular KOLs and incorporating gamification strategies can be a transformative approach to consumer engagement. The success of the Viktor&Rolf Douyin challenge, with its substantial participant turnout and impressive impressions, underscores the potential of gamified experiences. Brands seeking to enhance consumer engagement and generate excitement in the lead-up to festivals should consider the strategic integration of gamification elements and exclusive pre-sale access, recognising them as pivotal components in cultivating a dynamic and interactive brand-consumer relationship.

4.AI Shopping Assistants and Live streamers

AI-powered shopping assistants like Taobao's new Wenwen are making significant stride and was rolled out more widely on Taobao and Tmall for this year’s Singles’ Day providing personalised recommendations and guiding shoppers and giving optimised and personalised suggestions on best-value purchases, from tech gadgets to beauty picks. More than a digital assistant, Wenwen can analyse complex discount combinations and recommend smarter buying decisions. 

Live streaming is only going to get bigger globally, and the recent developments we´ve witnessed in China have been the rise of AI hosts and a growing reliance on virtual influencers to drive engagement and sales. Tencent is offering services enabling brands to create custom avatars for fees ranging from $1,400 to $2,400, while smaller firms provide virtual cloning for as low as $1,100, with additional video production costs of $1 per minute.

That said, regulations provide human live streamers with more advantages. AI hosts on Douyin, for instance, have to tell people they're automated. Skilled human live streamers deviate from scripts, leveraging their unique storytelling abilities to drive sales with emotive and nuanced communication that AI can't match. Brands can experiment and identify areas where AI bots can enhance customer engagement by combining human-led and AI-led livestreams.

Various bots can be customised for different subsegments and audiences, seamlessly integrating into touchpoints like customer care, physical stores, social media, gamification, tutorials and many others. The flexibility of AI bots empowers brands to offer a cohesive and engaging customer experience, enhancing brand interaction. This comprehensive approach can significantly boost customer engagement, enrich the shopping experience, and maximise brand visibility, laying the foundation for an effective marketing strategy for this year's Singles' Day.

Example: In April of this year, the renowned tech giant Baidu, a leading Chinese technology company, also known as Chinese Google, unveiled an innovative platform named Huibo Star. This platform offers a user-friendly three-step process, allowing users to create personalised AI hosts. Remarkably, within just six months, this platform has seen the emergence of AI hosts across diverse categories such as beauty, books, clothing, and food. These AI hosts have proven instrumental in boosting E-commerce businesses, delivering a dual benefit of cost reduction and operational efficiency. 

The incorporation of AI hosts, facilitated by Baidu's ground breaking platform, has enabled brands to seamlessly execute 24-hour nonstop live streaming, resulting in an impressive surge of over 50% in sales. This rapid evolution underscores the transformative impact of Baidu's AI technology in reshaping the landscape of live streaming and E-commerce dynamics

Key Takeaway: Key Takeaway: The integration of AI-powered shopping assistants and live streamers is offering cost-efficient personalised recommendations and optimised suggestions for a diverse range of products. As witnessed in the recent advancements in China, the rise of AI-hosts and virtual influencers is indicative of the evolving dynamics in global live streaming. Brands, whether tech giants or emerging players like TTOUCHME, can harness AI's potential to enhance customer engagement and drive substantial growth. However, the strategic balance between AI-led and human-led livestreams is crucial, as skilled human hosts excel in emotive storytelling, a realm where AI still struggles. Customising AI bots for various touchpoints, from customer care to social media, signifies a holistic approach that significantly amplifies customer engagement, enriches the shopping experience, and maximises brand visibility. This year's Singles' Day showcases the transformative power of AI, emphasising its role as a cornerstone in shaping the future of marketing strategies.

China's 11/11 Singles' Day isn't just a shopping spree; it's a playground of innovation and a glimpse into the future of marketing. Beyond the jaw-dropping sales figures, it reveals the magic that happens when brands tailor experiences and embrace cutting-edge tech.

For marketers, it's not about copying the playbook but understanding the groove. Whether it's flexible payment options, the fun of AR try-ons, or the AI-powered shopping buddy, it's the fusion of tech with authenticity that hits the sweet spot.

Brands need to be more than transactional; they need to be companions in the consumer journey. Marketers jam with innovation, use tech smartly, and, above all, keep it real. The festival isn't just breaking records; it's breaking ground for a future where brands aren't just sellers; they're creators of genuine, lasting connections.