Written by: Liu Shaode

As a reflection of offline physical commerce, every year's Singles' Day is a microcosm of the brutal competition among enterprises. In this smoky war, some enterprises have taken the lead, while others have gradually fallen behind.

Unwittingly, Singles' Day has ushered in its 16th anniversary since its inception. Over the past 16 years, the enthusiasm for Singles' Day has not waned among e-commerce platforms, consumer goods companies, and consumers alike. Especially this year, with tax reforms, fiscal stimulus, trade-ins for consumer goods, and other various advantages, the enthusiasm for Singles' Day has surpassed previous years.

On October 14th, the day Tmall launched its Singles' Day campaign, the daily chemicals and beauty category showed unexpected explosive growth. On the first day of Tmall's beauty presales, 13 brands such as Proya, L'Oreal, Lancôme, and Colfax surpassed 100 million yuan in sales within 10 minutes, and 20 brands and 8 products surpassed 100 million yuan in sales within the first 30 minutes. Coincidentally, sales in the consumer electronics and digital appliances category surged by 765% year-on-year compared to the first day of presales last year, with several brands quickly surpassing 100 million yuan in sales.

Behind the bustle, what are the differences in this year's Singles' Day compared to previous years?

Platform Competition: A Bloody Battle

The competition among e-commerce platforms is nothing new, with each platform vying for users and growth. Amid widespread internal competition, platforms have to attract consumers and stimulate shopping by starting presales earlier and increasing discounts.

As platform competition intensifies, the cost of acquiring customers, marketing, and operations for consumer goods companies on these platforms has also risen, further squeezing their profit margins.

The Demythologization of Top Live-streamers; Store Live-streaming Becomes the New Normal

With the downfall of top live-streamers like Three Sheep and Northeast Sister Yu, brands are gradually demystifying live-streaming e-commerce. Instead of tying their brands to top live-streamers for "toxic" sales, it is better for companies to convert their product strength, brand power, and operational capabilities into marketing power and keep consumers within their own grasp.

As a result, we see "store live-streaming" becoming a regular part of the marketing routine for many consumer goods companies, with many moving their live-streaming studios to production lines and warehouse facilities. By communicating and interacting more closely with consumers, they can narrow the distance between the brand and the consumer and attract them through targeted marketing.

Platform Interoperability: The Inevitable Demolition of Walls

On September 5th, Taobao Group announced that it would gradually open WeChat Pay to all Taobao and Tmall merchants after September 12th - signaling the substantial realization of the "demolition of walls" among internet giants since its implementation in September 2021. "WeChat on Taobao" will become a reality.

On the 16th of the following month, JD Logistics announced its cooperation with Taobao Group, allowing JD Logistics to fully integrate into the Taobao and Tmall platforms. Platform merchants will now be able to choose JD Logistics as their service provider. Recently, Tencent Video has also started experimenting with embedding Taobao links and completing purchases within WeChat...

On the occasion of Singles' Day, these major announcements not only signify substantial progress in the "demolition of walls" among internet platforms but also inject a shot in the arm for brand manufacturers, eliminating the need to switch between different platform rules and increasing operational costs. They also provide consumers with more choices and convenience.

Not That It's Too Expensive to Buy, But a Greater Focus on Cost-Effectiveness

Unlike the dazzling Discount policies of previous years, major e-commerce platforms have placed greater emphasis on consumer experience during this year's Singles' Day, adopting strategies such as direct price reductions and enhanced after-sales services to improve consumer satisfaction.

At the same time, as the 24-40 age group becomes the main force in Singles' Day shopping, labels such as convenience, love for life, emphasis on quality, and cost-effectiveness have also become the main strategies for marketing during this year's Singles' Day for various enterprises.

Backend Supply Chain: The Invisible "War"

On the evening of October 21st, Tmall Singles' Day presales orders began paying the balance and were gradually shipped. At 21:12, a SF Express deliveryman in Liaoning called the customer after seeing that they had completed the payment. At 21:14, the goods were loaded onto the truck for delivery. Just ten minutes later, the delivery was made at the customer's doorstep - just 12 minutes after they had completed the payment.

This demonstrates that Singles' Day is no longer just a competition among merchants in terms of products and marketing but also in terms of service and technological innovation. With the widespread application of big data, AI, and other technologies, the competition among enterprises is expected to intensify in the future.

A Microcosm of Singles' Day Reflects Changes and Digital Construction in Consumer Goods Enterprises

As a reflection of offline physical commerce, Singles' Day is just a microcosm of the development of consumer goods enterprises in recent years. By examining this year's Singles' Day, we can see the changes that consumer goods enterprises have undergone in recent years and reflect on the implications for their digital construction.

1. Intelligent Marketing

As traditional mass media and supermarkets decline, new communication and distribution channels such as social media, e-commerce platforms, and O2O have gained popularity, leaving many enterprises struggling to find new growth opportunities.

When younger generations no longer rely on CCTV or newspapers for information, what channels should enterprises choose for communication? With the stay-at-home economy becoming the new norm, what channels should enterprises use to sell their products to consumers? With similar questions arising, omnichannel marketing and distribution have become necessary options for many enterprises.

Returning to Singles' Day itself, the question is no longer whether consumer goods enterprises should participate in e-commerce but how to do so effectively. Leveraging the internet and big data technology, actively utilizing the advantages of the internet and various e-commerce platforms, integrating online and offline channels, and complementing platform traffic with private traffic, enterprises can enhance their communication touchpoints and continuously optimize their omnichannel construction. This is the necessary path for enterprises to avoid elimination in the era of stock competition.

2. Data Unification

With the gradual implementation of the Antimonopoly Law and the backdrop of stock competition, interoperability among major platforms has become inevitable. Correspondingly, there must be interoperability in product information, pricing, inventory, membership information, etc., to improve information exchange efficiency, optimize consumer experience, and enhance consumer satisfaction.

3. Membership Marketing

As everyone knows, membership marketing is an essential marketing tool for consumer goods enterprises. It not only helps enterprises maintain and strengthen relationships with customers but also enhances marketing efficiency and brand value through data channels.

Today, membership marketing is integrated into various channels such as retail stores, online malls, social platforms, and e-commerce platforms. By leveraging membership value, continuously refining member profiles, establishing long-term and stable relationships with customers, enhancing customer loyalty, and ultimately achieving precision marketing tailored to individual customers, enterprises can increase customer stickiness and realize their lifelong value.

4. Smart Manufacturing

As consumption channels become increasingly fragmented, consumption scenarios diversify, and consumers' individual needs grow stronger, consumer goods enterprises are compelled to continually build more efficient supply chain systems. Through automation and intelligent technology, consumer goods enterprises can improve production line efficiency, reduce labor costs, and increase production speed and output.

Through smart manufacturing, consumer goods enterprises can satisfy individual consumer needs through personalized customization and flexible production, enhancing customer satisfaction and loyalty. They can also support rapid prototyping and product iteration, accelerating new product market introduction, and enhancing enterprises' innovation capabilities and market competitiveness.

In summary, with the continuous advancement of digital technology, the consumer goods industry is undergoing a revolution, with every aspect from production, marketing, to sales being reshaped by digital technology.