Bain: This year's "Double Eleven" consumption will remain active Retailers are more competitive

In order to better understand the trend of "Double Eleven" this year, international consulting firm Bain & Company and technology company Toluna conducted a survey of nearly 3,000 consumers from many cities in China, and released the report "China's Retail: Redefining the Success Criteria of Double Eleven" on October 27.

According to the Bain report, up to 95% of respondents intend to participate in this year's "Double Eleven" event. 52% of respondents plan to increase consumer spending this year (respondents spent an average of 2104 yuan on "Double Eleven" last year), and only 8% said they would reduce spending. In addition, female consumers are more likely to increase consumer spending this year's "Singles' Day" than men.

Looking forward to this year's "Double Eleven" consumption trend, Bain believes that last year's major trends are expected to continue, driving this year's turnover growth. For example, the penetration rate of lower-tier cities is expected to continue to increase, and the number of consumers participating in "Double Eleven" for the first time in third- and fifth-tier cities this year may exceed that of first- and second-tier cities. Consumer spending in the health care category, which has grown strongly due to the impact of the epidemic, is also likely to continue the growth trend this year, especially in the cosmetics and personal care categories. Overall, many respondents expressed a strong preference for brands they are familiar with (more than 70%) and cost-effective brands (60%). In recent years, as retailers have entered the market, the number of participating platforms has been increasing, making sales gradually decentralized and competition more and more intense. According to the report, more than 50% of respondents said they plan to go to 3 or more platforms this year, and nearly 80% of respondents want to get a bigger offer than last year.

"A lot of consumers don't mind changing retailers on Singles' Day. For them, the Singles' offer didn't keep them loyal to a single platform. They have too many options and plenty of room to shop around. Retailers can't be indifferent to consumer demand, but offers alone don't guarantee they'll win under the new rules of the game," said Zheng Shuohuai, Global Partner at Bain & Company and Chairman of Retail in Greater China.

The report shows that consumers who strongly support retailers in the "Double Eleven" event have high consumer spending on the same platform throughout the year. Some leading retailers have demonstrated customer loyalty through a series of measures to enhance the customer experience, such as tailor-made products for customers, technological innovation to improve service efficiency, and the introduction of preferential membership privileges. "While consumers' penchant for big deals is unlikely to change in the short term, some leading retailers have made some progress in cultivating customer support for 'Singles' Day, and consumers are no longer limited to simple reasons like 'here's what's selling good and cheap', laying the foundation for retailers to build a more lasting differentiation." Yang Dakun, a global partner at Bain & Company, pointed out.