Singles’ Day showdown: China’s e-commerce platforms set to battle it out during the mega sales festival

By Amanda Lim

- Last updated on GMT

China’s stalwart and emerging e-commerce players are set to make the upcoming Singles’ Day intensely competitive. [Getty Images]
China’s stalwart and emerging e-commerce players are set to make the upcoming Singles’ Day intensely competitive. [Getty Images]
The rivalries between China’s stalwart and emerging e-commerce players are set to make the upcoming Singles’ Day intensely competitive in the world’s second-biggest beauty market.

After years of rapid growth, cosmetic companies have experienced a challenging time in China, with consumers adopting more cautious spending habits.

As the Singles’ Day, or 11.11, mega sales festival approaches, Chinese consumer confidence remains muted.

“There might be some mega sale fatigue on the consumer side due to the frequency, unsatisfied discounts and overwhelmed deal choices these years,”​ said Elena Gatti, managing director of Azoya Europe, a China cross-border e-commerce enabler.

“Nevertheless, their consumption patterns have evolved to become more rational, with a preference for products of similar quality. This shift opens the door for niche brands offering competitive pricing to enter the Chinese market and gain traction.”

Despite this, Gatti expects this year’s mega shopping event to be an intense event.

“This Single’s Day would still be quite competitive. Chinese consumers, who have endured a three-year lockdown, are now eager to satisfy their long-suppressed demands.”

“Nevertheless, their consumption patterns have evolved to become more rational, with a preference for products of similar quality. This shift opens the door for niche brands offering competitive pricing to enter the Chinese market and gain traction.”

Furthermore, competition is heating up between e-commerce players in China.

“Moreover, emerging players like Douyin, Xiaohongshu, and [Kuaishou] are posing formidable challenges to traditional giants of the industry, such as Tmall, Taobao and JD.com,” ​said Gatti.

“To stay relevant and competitive, these established platforms are being forced to rethink their strategies, focusing on enhancing both their content and pricing. Merchants on these e-commerce platforms are eager to capitalise on the opportunity to clear out their inventory that has been reserved during the pandemic period.”

Competition will drive future trends

The competition between brands and platforms is set to shape the future of Singles’ Day in China. Gatti expects that consumers will be able to enjoy more attractive promotions moving forward.

“The competitive landscape, characterised by diverse e-commerce players like Douyin and Xiaohongshu, is anticipated to drive more significant discounting efforts. Brands and platforms are likely to amplify their discount margins, striving to be more competitive in this saturated market.

“Moreover, an increased integration with social media platforms is foreseen for promotional and sales activities, utilising these channels for enhanced advertising, promotion, and direct sales. Douyin and Xiaohongshu will play more significant roles in the events.”

A shift towards simpler promotional strategies, emphasising straightforward approaches is anticipated.

“Rather than intricate cross-store cumulative discounts, the focus will be on direct price reductions, supported by platform subsidies to deliver immediate benefits to consumers,” ​Gatti elaborated.

Gatti also expects increased participation of international brands in these mega events, reflecting the globalisation of such sales festivals.

“The development of Chinese cross-border e-commerce and growing globalisation of mega sales events will see more international brands actively engaging in promotional activities, providing Chinese consumers with access to a broader spectrum of global products.”

Related news

Related products

show more

Discover Peptan for Beauty & Diverse Skins

Discover Peptan for Beauty & Diverse Skins

Content provided by Rousselot | 05-Sep-2024 | Product Brochure

As beauty from within solutions soar in popularity, manufacturers need to be able to serve everyone, no matter their ethnicity or skin type.

FucoSkin®: Ocean-Inspired Sustainable Beauty

FucoSkin®: Ocean-Inspired Sustainable Beauty

Content provided by Hi-Q Marine Biotech International Ltd | 28-Aug-2024 | White Paper

FucoSkin® is a fucoidan-rich extract derived from the brown seaweed Laminaria Japonica, known for its excellent anti-aging and photoprotective benefits....

Collagen Reimagined, Discover Biodesigned Type XXI

Collagen Reimagined, Discover Biodesigned Type XXI

Content provided by Geltor | 20-Mar-2024 | Product Brochure

Collagen is the body’s most abundant protein and a mainstream ingredient for beauty. Type XXI collagen transcends a common protein into a powerful bioactive

Empowering natural barrier function for future-proof skin

Empowering natural barrier function for future-proof skin

Content provided by Lucas Meyer Cosmetics | 14-Mar-2024 | White Paper

Corneopeptyl™ is a new patented peptide biomimetic to the LCE6A protein, obtained by green chemistry-based synthesis. By mimicking the LCE6A protein activity,...

Related suppliers

Follow us

Products

View more

Webinars

Podcast