Alibaba's new initiatives to win China’s 11.11 shopping festival

Date : 02 November 2022

Louis Lau

Analyst

Apart from giving a price discount on products during the festival, which runs between 31 October to 11 November 2022, Alibaba has increased its support to help partners grow their businesses, and help it differentiate it from rivals.

Growing customer loyalty for brands

One of Alibaba's key objectives is to help brands grow customer loyalty on its platform. This initiative can help brands improve their return on investment in the long run. Alibaba will provide brands with tools and solutions to develop their loyalty membership programmes. Using Alibaba's ecosystem-wide premium loyalty membership program 88VIP, brands could potentially reach over 25m premium shoppers with annual average spending of more than RMB57,000 (USD7,859).

Currently, over 40 brands on Alibaba’s Tmall platform have loyalty membership programmes that have exceeded 10m members, while 600 brands have loyalty membership programmes with over one million members.

Supporting partners to grow their business

To support small merchants facing financial difficulties, Alibaba's Tmall and Taobao platforms will provide quicker payment transfers to ease their liquidity during the festival. This will see it halve the account receivable cycle to seven days, on average, for certain products. Furthermore, Alibaba will provide new merchants with its business intelligence tools to help them make real-time business decisions. It will also help merchants by providing marketing exposure and customer targeting assistance to launch their new livestreaming channels.

For low-tier markets, Alibaba’s Taobao Deals has worked with more than 1,800 industrial clusters to offer value-for-money products, including groceries from over 10,000 factories.

Promoting sustainability to all stakeholders

Alibaba's Tmall has labelled its products with low-carbon emissions, making it easier for shoppers to identify and check their environmental impact. It has also collaborated with over 40 manufacturers, such as Procter & Gamble, Haier, ThinkPad, and Yili to promote low-carbon products by giving shoppers free sustainable shopping bags.

Driving profitable growth with strong loyalty programmes

As China's economy slows, shoppers are becoming more conscious of spending their money. They need something special and exclusive. Cutting-throat discounts may not be a good option for brands to gain sales momentum. The approaches like exclusive membership products or offers to increasing customer loyalty for brands would help them grow not only sales but also profits in the long term.