November 11th is “Single Day” Online mail order companies in China sale November 11 7:27
On November 11th, China’s “Singles’ Day” launched a large-scale discount sale by internet mail order companies. It is said that demand for online shopping is increasing due to so-called “nest consumption” due to the influence of the new coronavirus, and there is interest in how far the transaction amount will grow.
November 11th is called “Single Day” because the number “1” which means single is lined up in China, and online mail order companies are holding a large discount sale every year according to this day.
Of these, Alibaba Group, the largest company in China, held an event in Hangzhou, Zhejiang Province, where its headquarters is located, and announced the start of the sale by counting down at midnight local time on November 11.
Alibaba said last year that this day alone recorded a record transaction value of more than 4 trillion yen in Japanese yen.
It is said that demand for online shopping is increasing due to the so-called “nest consumption” caused by the new coronavirus, and there is interest in how far the transaction amount will grow.
In addition, while the Chinese economy continues to recover from the effects of the new coronavirus, the trend of consumption on single days is also attracting attention, as the bottoming out of private consumption has become a challenge.
You can also deliver your luggage with an unmanned delivery vehicle.
The number of singles days is expected to increase year by year, with more than 2.3 billion deliveries delivered at last year’s event, as well as an increase in so-called “nest consumption” due to the effects of the new coronavirus.
For this reason, the efficiency of logistics using advanced technology has become even more important, and Keito, the second largest company in the industry, began a service last month in which unmanned delivery vehicles deliver packages in parts of Jiangsu Province in the eastern part of the world.
This delivery vehicle automatically travels at a maximum speed of 10 kilometers per hour and is said to identify signals, pedestrians, etc. with cameras and sensors.
When you arrive at the delivery destination, you will automatically receive a notification on the smartphone of the person who ordered it, and you can receive the package by reading the QR code.
The woman who received the product said, “It’s a new feeling, and it’s convenient.”
Since this is the first time in China that an unmanned delivery vehicle will be operated as a commercial service throughout the city, the company plans to introduce 100 vehicles by the end of the year and expand it throughout China in the future.
The company is also automating distribution centers, and its facilities in Beijing have introduced a system in which robots perform most of their work and efficiently sort and deliver goods from large numbers of shelves and baskets.
It reduces headcount by 70% compared to non-automated warehouses and can handle six times as much luggage as before.
A company representative said, “In order to improve logistics efficiency, we would like to increase our production power through automation and smarter operations.”
Japanese companies selling live commerce
In line with Singles Day, Japanese companies are also strengthening their sales to the Chinese market.
As inbound consumption by Chinese tourists is not expected due to the new coronavirus, the Japanese retail industry is increasingly looking to find a way to become a “cross-border EC” that sells products directly to Chinese consumers through online shopping.
In April, a manufacturer of healthcare devices for babies headquartered in Tokyo introduced a new sales method called “live commerce” that introduces products over the Internet.
“Live commerce” is characterized by the interactivity of companies answering consumer questions online in real time, and it is expected to spread rapidly in China over the past few years, and its circulation is expected to grow to 1 trillion renminbi and 16 trillion yen in Japanese yen.
In this company, four Chinese employees relay three or four times a week from a store in Tokyo for “Single Day”, and the number of viewers is said to be 500 on the day when the number of viewers is high.
The best seller was an electric toothbrush for infants, and in the Internet relay, in addition to the softness of hair with consideration for safety, we were promoting it while demonstrating the function of shining in seven colors to protect children.
According to this company, sales at stores in Japan decreased by about 90% compared to before the spread of the new virus due to the decline in inbound demand, while online shopping in China was strong, and during the sale period of “Single Day”, we expect to sell 100,000 electric toothbrushes twice as many as last year.
Kiyotaka Yamato, president of the company, said, “Demand has dropped considerably due to the effects of the new coronavirus, and the worst has happened, but I think the possibility of cross-border e-commerce is significant. I’ve been doing things for Singles Day since around the summer, so I hope it goes well.”
Some companies expect twice as much sales as they did last year.
Shiseido, a major cosmetics company, sells live commerce every year to coincide with Single’s Day.
Until now, Chinese women called “KOL” and “Key Opinion Leader” who are influential on the Internet in China have introduced their products, but the person in charge of the brand dared to appeal to products not sold in actual stores in China from the Japanese office.
The aim is to further develop the Chinese market by getting people to know more about the characteristics and use of Japan’s main products, which are still not well-known in China.
Due to the new coronavirus, the company’s inbound demand for the six months to September has decreased by more than 60% compared to the same period last year, but during this sale period it is expected to sell approximately twice as much as last year.
Noriko Kitahara, Vice President of Brands who participated in Live Commerce, said, “It was a good opportunity to experience the power of live commerce in China. I would like to further consider opportunities and methods to get to know products that are loved in Japan.”