Jake’s Take: Singles’ Day 2024 Delivers Record Sales

Another Singles’ Day in the books!

Here are my key takeaways.

First, the festival showed really healthy sales growth. Our data at WPIC Marketing + Technologies indicates around 16% YOY growth in GMV. We also saw record levels of consumer participation and engagement—important metrics for both platforms and brands.

Second, Alibaba Group was the clear platform winner. Our estimates show that this was the best festival since pre-pandemic for Alibaba, with strong sales growth and a record number of buyers. Alibaba has not only invested in the user experience, but also rolled out a bunch of merchant-friendly initiatives around returns, store traffic, and AI e-commerce tools—which drove more advertising to Taobao/Tmall. Alibaba reported that 88VIP members spent 50% more than last year—and the membership consists of 40+ million high spending consumers. This is a major consumption force.

Third, consumers showed a preference for premium branded goods during this year’s festival. We saw significant growth in sales of goods within premium brands across multiple categories: beauty and personal care, mother-baby, electronics, FMCG, pet, and more. Dozens of brands in each of these categories surpassed RMB 100 million in GMV on Tmall alone. As I said on Bloomberg, the much-publicized luxury downturn (which is really a global phenomenon) is largely due to shifting consumer preferences—consumers are still able and willing to splurge, but on products that align with new trends and lifestyles. They’re swapping Louis Vuitton for Lululemon.

(On a side note, Lululemon just reported that China sales are up 40% this year. Estimates show that Lululemon’s China prices are 20% higher than the U.S., and and products priced at 1,000 RMB (US $140) or more account for 40% of online sales).

The final related takeaway is that there’s a clear shift in consumer priorities towards spending on experiences, hobbies, and health. There’s a notable focus on emotional and social aspects of consumption, with consumers spending more on products that enhance their social lives or emotional well-being. In terms of specific categories, that’s: toys, vitamins, personal care, cosmetics, pet products, mother-baby, outdoor and sport.

Overall, this year’s 11.11 was a testament that there are big pockets of growth in key demographics and emerging categories in China.