Rakuten Marketing research has found that UK marketers are willing to pay large sums to social stars and ‘influencers’ – but 86% of marketers admit they aren’t entirely sure how the fees are calculated and 38% don’t know if that layout is actually driving sales. Despite this, spend on influencer marketing is on the rise. James Collins studies the stats behind this latest trend in celebrity marketing and tots up the value.
In the western world, the massive Black Friday/Cyber Monday spendfest is looming and retailers are gearing up to deal with the surge of consumerism that post-Thanksgiving holiday creates – not just in the USA, but increasingly farther afield, as consumers bid to fill their Christmas stockings at knock-down prices.
But did you know there is another – even bigger – event before that? In China, Singles’ Day has become the ‘world’s biggest online event’.
Morphing far beyond its origins as a party and gift-buying time for young, single, university students, in 2009 e-commerce giant Alibaba took ownership of this November 11th event by trademarking it.
And, as Doreen Wang (pictured below) – global head of BrandZ, Kantar Millward Brown – explains, it has since rocketed in popularity: “The magnitude of China Singles’ Day, driven by the engagement and passion of millions of consumers, is off the scale. In 2016, Chinese shoppers spent $17.8billion in 24 hours. That compares to $3.34billion for Black Friday and $3.45billion for Cyber Monday.”
And she added that this year’s event promises to be even larger, with the Chinese government getting involved in polishing the customer experience: “A champion of innovation and all things e-commerce, the government is backing the event. After last year’s Singles’ Day, the Minister of Commerce publicly promised State Council support for e-commerce innovation and online-to-offline integration, so that the customer experience is seamless.
“China is also committed to leading the field of online finance as the country moves from cash to mobile payments. (Figures from GroupM’s E-Commerce Insights for last year’s event showed that mobile purchases already accounted for 82% of revenue.)”
Online event marketing tills ring out
Wang said brands are battling with their competitors to do the best business: “This year, more e-commerce players are jostling for position. Brands have prepared early, many with their eye on levelling the playing field with Alibaba. JD.com has entered into a traffic-sharing deal with TenCent and a partnership with Walmart, while social and gaming platforms have integrated to support Singles’ Day.
“While the virtual tills never stop ringing during the greatest e-commerce discount festival on earth, retailers face a difficult balancing act. Singles’ Day is perceived as a great initiative for brands to drive up penetration as well as providing good opportunities for new and start-up brands.
“For example, last year Uniqlo hit $20 million sales within two minutes and, over the course of the event, local snack brand Three Squirrels reached $100 million in sales.”
BrandZ has produced an infographic (see below), showing the top 100 most valuable Chinese brands, and this video:
Reaping the rewards of event marketing, long-term
But what about repeat purchases, brand love, the customer relationship? In the midst of the Singles’ Day ‘double-eleven’ buying frenzy – held on the 11th day of the 11th month – loyalty is at the back of the queue; consumers are only interested in discount deals and Chinese e-commerce players must provide them.
Wang concluded: “To reap long-term rewards requires that they embrace the global reach afforded by the phenomenon that China Singles’ Day has become. At the same time, they need strong digital CRM systems so that customer loyalty programmes kick in after the event, as well as robust omni-channel integration strategies, to optimise the significant role played by offline channels in China.
“This must be reinforced with a focus on purpose, innovation and delivering a unique brand experience to consumers so that shoppers select their brand over a competitor’s, regardless of whether the price is discounted.”
The message is clear – e-retailers must balance the buying frenzy that is Singles’ Day with customer loyalty programmes that will support a relationship going forward . . . and without the discounts!
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