Singles Day 2022: 3 Hacks to Stand Out and Win with Your Campaign
If you have heard of big-name livestreamers in Mainland China, such as Li Jiaqi, the top influencer known for a presale amount of 107 Billion RMB (~$14.7 Billion USD) for Singles Day in 2021, then you would know why Singles Day is a big deal for the Chinese consumer. Many save up to splurge on this annual sale, which features pre-promotions that start in early to mid-October all the way up to Singles Day on November 11th.
That amount we're talking about from livestreamer Li JiaQi? That was only on the FIRST day of Singles Day in 2021. This already includes restrictions such as no returns, 100% payment on the goods, and no refused package deliveries (returns are a huge problem in Mainland China and skew reported sales numbers--so beware!)
You might think, how do these livestreamers sell such astounding numbers at insane speeds? They aren't just turning on their cameras and yelling, "OH MY GOD! This is the holy grail! Best product ever!!!" These are professional salespeople who work with the clients to craft an attractive deal for Singles Day, and they describe the product features and benefits in great detail to draw viewers in.
While you and/or your team may not be professional livestreamers or expect millions or billions of dollars in sales in a Single Day, there are things you could do to make the most of the annual sale period.
Think in terms of lifetime value. Buy loyalty, not transactions.
If you go into it thinking Singles Day is a transactional business exercise, where you should be making 3X or 4X your investment, then you'll likely be disappointed.
Your investment in Singles Day should be 1) raising awareness of how awesome your products and services are and 2) building brand loyalty with your new customers for repeat sales (your best prospects for tomorrow's sales are today's customers).
How do you buy brand loyalty? Well, you probably want to feature your signature products as part of the sale, so if this is the first-ever touchpoint customers will have with your brand, they can get a sense of how great your products are. Don't just use old inventory as a gift with purchase options. Would you consider it a good deal if you were in your customers’ shoes?
More importantly, the deals are almost too good to be true. This leads us to our next point...
More is More
Buy 2, get 10! This might sound crazy, but there are deals from skincare and makeup brands on Chinese shopping platforms like Taobao, T-Mall, and JD.com.
If you buy 1 full-sized product, you get 1.5 products FREE. Just like in the image below, which shows this year's SkinCeuticals China Singles Day offers. Buy 30 ml get 58 ml! Although the gifts are all sample size, volume-wise, you are undoubtedly getting a great deal. The image below shows Helena Rubinstein’s offer, which includes an unbelievable promotion for buy 1, get 16! That’s right, buy 1 get 16, and this is for a premium skincare brand.
Why would brands want to do this? Because they’d rather you be using their product for an entire year and buy other products in their product line that complement the main skincare cream. By getting their signature skincare cream or serum on your nightstand, they now have your permission to sell you the rest of the items you need for your skicnare routine.
These offers are active Singles Day offers in Mainland China, but guess what? Chinese consumers living overseas ALSO have access to these shopping apps and see these offers, so be prepared to get compared against these promotions, even if you are a brand based in North America. If you want to run a Singles Day campaign with a 10% offer, we’d tell you to save your money because your deal isn’t competitive enough.
Buy 30ml get 58ml is not a dream, it’s a real offer in the Mainland China market.
Click on the photo to see the Buy 1 Get 6 offer, OR, the Buy 1 get 16 offer. Yes! 16!
Or this other one where the top 5 spenders in the first four hours of the sale get a free $100 coupon each month for a year with no conditions attached. This company also offers a buy 1 get 1 free deal for the first 500 shoppers within the first 4 hours of the Singles Day offer going live.
When was the last time you heard buy 1 get 1 free in North America? We know it will be hard for companies in North America to follow these types of deals. Still, you’ll need something comparatively attractive to convince shoppers to spend their money with you on Singles Day versus with another brand. Sometimes, Chinese overseas shoppers will still buy the deals on Taobao, JD.com, and T-Mall, then ship them to their friend’s place in China and mail them over. The crazy thing is, it might still be a better deal for them than buying here in North America!
This company doing a buy 1 get 1 free for the first 500 shoppers within the first 4 hours of the Singles Day offer going live.
These crazy deals confirm our point that brands aren't just thinking of turning a profit during Singles Day. They're also thinking of impression share and being top of mind for customers for the rest of the year.
If you think of Singles Day as a first date with your customer and you absolutely WOW them, be prepared with your follow-up to build the customer relationship!
Everyone asks this question: How can I make money if I'm giving away this much? While brands see Singles Day as a great way to generate revenue, it's also accepted that it is not the most profitable promotion of the year. With such steep discounts and gifts with purchases, some brands even see this as a loss leader to get new customers through the door and onto their contact list. This brings us to our final point...
Be Ready with Your Follow Up
Don't just run your Singles Day promo and call it a day. If you got point #1 correctly, and you're thinking of the new customers you gain from Singles Day in terms of lifetime value, then you want to consider how to maximize that value.
If you crafted a killer offer for Singles Day, generated sales, and increased your contact list, now is the time to follow up with more products and offers to convert more profit! If they bought something from you, then you want to take them through the customer journey again, so you get repeat purchases (this time, hopefully with better margins!)
Here's an example of how to do it.
Suppose you are a skincare brand and for Singles Day you promoted your best-selling moisturizer. In that case, your follow-up offer might be the serum that pairs with the moisturizing, or the eye cream, or the face wash... anything that builds on the skincare routine revolving around your moisturizer, because you want UPSELL. You also want the customer to use MORE of your product range, which is why you introduce complementary products in your follow-up marketing efforts.
Not sure where to begin or need more help? Contact our Chinese Marketing Specialists at info@catalystagents.com today for a consultation and custom quotation for your campaign!