CHINA’S economic rebalancing toward more consumer-oriented growth has global businesses cautious, but pessimists need only look at the country’s annual e-commerce event for a strong reminder of consumer buying power.

    Created by a group of young Chinese in the 1990s, the holiday known as Singles’ Day was originally a way to celebrate single life. Held Nov. 11 every year, it’s popularly described as “China’s anti-Valentine’s Day.”

    As the holiday acquired nationwide popularity, Alibaba became the first major company in 2009 to monetize the holiday by launching a special online sale and effectively transforming the day into the world’s biggest 24-hour online shopping event, one that reflects the growing wealth of China’s middle class. Other e-commerce players like JD.com have since begun offering their own Singles’ Day sales too.

    This year, the holiday, also referred to as Double 11, could record its best performance yet.

    According to a mobile survey by AdMaster, a leading marketing data technology firm in China, that polled 1,468 netizens Oct. 8-9, 84 percent of the respondents claimed they will join in with an average spending of US$285 (32 percent increase from last year).

    If correct, that could likely see Alibaba sales hit US$10 billion in a 24-hour period for the first time.

    Last year, the e-commerce behemoth booked a record US$9.3 billion in sales, more than four times the US$2.4 billion sold Cyber Monday, the biggest online sales day for the United States that falls on the first Monday after Thanksgiving.

    This year, more than 1,000 retail brands, representing 180,000 stores in 330 mainland cities, will participate in Alibaba’s event, according to a recent press release. It’s not just China-focused either; 5,000 overseas brands from 25 countries such as the United States, Europe, Japan and South Korea will be available.

    Three-out-of-five respondents in a survey by Nielsen in October say they will purchase or consider purchasing overseas products this year.

    “As Chinese consumers become increasingly sophisticated, their desire for high quality and niche products is also rising. In line with this trend, more and more consumers are turning to cross-border and overseas purchasing,” Nielsen noted.

    Early bird promotions and preorders are becoming an increasingly effective means for e-commerce players to drive more traffic to their sites and lock in purchases, with over 90 percent of Nielsen’s respondents intending to place items in their online carts before Nov. 11 as to avoid products selling out.

    According to AdMaster’s survey result, the expected spending per person reached US$285 this year. It is also noteworthy that the highest average spending group has shifted from those aged above 35 to those aged 26-35 this year, with US$343 per person. According to the survey, 62 percent of people plan to use these online credit payment services on Singles’ Day this year, and their average expected spending is US$157 higher than those who are not using them.

    The shift from PC to mobile continues. Eighty-four percent of respondents choose to use a cellphone for their Singles’ Day shopping. More e-shoppers will use WeChat Pay. Thirty two percent of the respondents said they will use Wechat Pay this year, with a 20 percent growth from last year, the highest growth among all payment methods.

    As the event grows every year, slower shipping and delivery times remain problematic for consumers, as mentioned by 62 percent of the survey’s respondents.

    Logistics companies say they are using every tool possible to maximize efficiency.

    “It will be better this year as we are using data and pre-orders to prepare for goods in advance,” said Karen Wang, partner at JX E-Commerce & Logistics.

    Meanwhile, Cainiao-the logistics affiliate of Alibaba-has unveiled special arrangements for this year’s event that should deliver goods in less than two hours time for certain customers, according to a recent statement.

    (SD-Agencies)