One of the biggest shopping days for e-commerce is easing upon consumers. For those who are looking to find a great deal, then Singles Day is the day to shop. November 11th, otherwise known as Singles Day to the e-commerce world is gearing up to be one of the biggest in terms of deals that are going to be found. However, it has many wondering if Alibaba is going to be able to hold their dominant position in the market, since they are now competing against JD.com who has made some great improvements over the past year.
Enticing Shoppers for Singles Day
Both companies are working to make sure that Chinese consumers are well aware of the deals that can be found via e-commerce on Singles Day. Alibaba has been enticing customers with leaks of deals that they are offering on this day. However, JD.com is going to a bit further with how they are reaching the consumer market, and it may be the deciding factor when it comes to which e-commerce giant is going to dominate Single’s Day. JD.com is working with Tencent social networks as a way to reach more consumers. Tencent is the owner of QQ and WeChat, two of the more popular social platforms on the Chinese market.
The new collaboration between Tencent and JD.com is going to allow even more third party vendors to reach Chinese consumers. The idea is that with Tencent working behind the scenes to collect data on social media users, more third party vendors can direct their product towards those who are more likely to purchase. The idea is that consumers are going to be getting ads and products that are directed towards their personal taste. It is an online personal shopper so to speak, and it is kicking off on Single’s Day.
Not only is this move by JD.com meant to help gain customers, but it looks as though this is also a move to ensure that Alibaba is not always holding the number one spot on the e-commerce market. They hope to lure in more vendors with this new approach, as it is going to give the chance for vendors to reach a more direct audience who wants their products.
Is Alibaba No Longer the E-Commerce Leader?
Alibaba has had their fair share of issues on the e-commerce market, ranging from issues with shipments to counterfeit products being sold to unknowing consumers. Last year on Singles Day, Alibaba earned around $9.3 billion and had 278 million orders filed with them. JD.com never released their sales data from last year, but did state that they had 14 million orders, which is nothing compared to Alibaba.
Alibaba has already stated that this Single’s Day will feature 40,000 merchants that are offering six million products. Among these products are international brands that are from 25 countries. In addition, Alibaba is turning this event into a huge event for their headquarters, as they have stars that are listed to perform at their headquarters throughout the day.
So is Alibaba going to fail this Singles Day? The chances are that the e-commerce giant will maintain their status for this year. However, JD.com should not be considered out of the running just yet. The deal they have made with Tencent is one that is going to appeal to several shoppers. It could be that once this collaboration is fine-tuned and is running flawlessly, that many Chinese consumers are going to turn to JD.com, along with several merchants. Alibaba is going to have to ensure that they are staying on the cutting edge of what e-commerce shoppers truly want, and providing them with services that they were not even aware of needing.