The end of a shopping era – Taobao cancels the event of Double 12

Bad news for Chinese consumers eager to get some last-minute gift before the Festivals. In the afternoon of November 24 the e-commerce platform Taobao, part of the colossus Aliba, announced the cancellation of a highlight event in the calendar of year-end offers: The 12.12 shopping festival.

The news has to say little upset consumers, turning soon into the first trend topic on Weibo, one of Chinese social media, and it has totaled over 700 thousand views in less than 24 hours.

But what are the reasons that have led the company to operate this change of course? Is it an isolated event or the symptom of a change in the dynamics of the e-commerce industry?

In this article we will try to analyze the origins of this event, which has become popular over 10 years ago, and the motivations that may have pushed the Chinese giant to this last-minute change.

SUMMARY

Double 12: The origins of the 3rd most popular shopping party in China

The festival of Double 12, also known as the Day of the Couples, was born in China in 2012 thanks to a clever marketing move by the Chinese giant Alibaba. No symbolism or lucky numbers dating back to the ancient tradition of the country of the Dragon, therefore, but only a very commercial find.

The main purpose of this day is (in fact, It was... now it's the case) mainly to facilitate shops to liquidate excess stocks accumulated during Singles Day (11.11), another popular Chinese shopping party, and allow, especially to the smaller sellers obscured by the big companies, to promote products with limited-time discounts to attract the last customers before the Festivals.

Like all promotional festivals, the Double 12 has been able to attract a vast basin of users, landing not only on the Alibaba channels but also on all other major China e-commerce platforms, such as JD.com and Pinduoduo.

Despite the participation by over 1 million brands and 110 million consumers, 12.12 has never been able to approach the turnover records of the Single’s Day, nor even the figures for other Western shopping events such as Black Friday and Cyber Monday.

What can be the motivation behind the unstoppable flop of this event, which has survived for more than 10 years now?

Taobao: Symptom of crisis or evolution of the e-commerce market?

If you look at the numbers, finding a reason for the cancellation of this event does not appear so complicated. Despite the refusal by Alibaba in sharing its sales results for the second consecutive year, in fact, the negative trend of the “sweet cousin” of the Single’s Day has already been in the eyes of everyone for a couple of years.

The reasons for this change of course are mainly to be sought in ruthless competition among brands, which puts sellers under a lot of pressure, often leading to severe gaps in service to consumers, with never delivered goods, lost or damaged packages and requests for returns impossible to manage.

In addition to the logistical aspects, many have noticed a net change in consumer purchasing habits, especially in the e-commerce sector, following the Covid-19 pandemic. The forced closure of the activities, the economic difficulties of the families, the attention to health and, in general, the birth of a greater consciousness towards their consumption, in fact, have prompted many users to pay more attention to the products purchased online and to demand more and more from the companies.

Despite the “end of year shopping frenzy” is far from disappearing, both in China and in the rest of the world, the unstoppable trend towards greener logic and sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable began to stop consumers’ interest in the succession of crazy, unmissable, absurd offers (and those who have more to put them) typical of the late year period, leaving only the best AKA Black Friday, Single’s Day and beautiful company to survive.

No crisis for Taobao, therefore, but a first important signal that emphasizes the importance for all companies to adapt to the new demands of an increasingly selective and conscious market. What strategy to choose, then, to effectively respond to consumer needs and exploit online promotional events?

One, no one, one hundred thousand (brand): The importance of distinguishing itself

The recent change of Taobao choleo-shaped route gives us a lot to reflect on.

As in the previous paragraph, in recent years the online sales market has seen a crazy boom but at the same time has made consumers increasingly attentive and selective in choosing products.

In the chaos of shopping events preceding Christmas, or the Chinese New Year, one thing appears now certain: offering your products at super discounted prices is no longer a guarantee of success. The inevitable trend of many brands to “should in the pile” offering unrepeatable discounts before the Festivals, in fact, makes it increasingly difficult to bring out its voice among the myriad of advertising banners dedicated to offers.

Despite generalist advertising, it may be a good strategy in the short term, increasing sales immediately, the risk of investing large sums and then finding themselves competing on the fourth page of Google results is always around the corner.

The real key to conquering the hearts of consumers is distinguish itself from competition, demonstrate that they can respond to their specific needs and convey the value of their products through marketing strategies designed specifically for their target.