Key Insights from China's Double 12 Shopping Festival

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By admin*


Evolution of Double 12

Over 11 years, Double 12 has shifted from a user-merchant interaction focus to a supplementary positioning, primarily centered on Gross Merchandise Value (GMV).


Decline Factors

The festival's decline is attributed to an overemphasis on GMV, resulting in user attention decline and oversupply, exacerbated by a slower-growing e-commerce market and frequent shopping festivals.


Strategy Shift

Taobao and Tmall's strategy shift has positioned the year-end Good Price Festival as a replacement for Double 12, emphasizing support for small and medium-sized businesses.


Price War Intensification

Platforms, especially Alibaba, are adopting low-price strategies due to Pinduoduo's success in affordable consumption, intensifying the price war.


Good Price Festival

The Taobao Good Price Festival, starting on December 9, enhances discount intensity, merchant scale, and product scale, focusing on year-end shopping needs and offering more choices.

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Consumer Rationality

Consumer behavior has become more rational during Double 12 and the New Year Festival, with concerns about delayed Double 11 deliveries impacting enthusiasm.


Financial Burden

Extended promotions like Double 11 have overdrafted consumer psychology and finances, making merchants feel that promotions are less lucrative.


Shelf E-commerce Opportunities

Douyin and Kuaishou's attention to shelf e-commerce signals growing opportunities for small and medium-sized businesses.


Complex Purchasing Decisions

In the mobile internet era, consumers make purchasing decisions based on comparing prices and quality across multiple platforms, opting for the best value for money.

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