The 11.11 sale (also known as Single’s Day) is a key calendar date for online retailers in Asia. The promotional tactic was created in China and quickly gained popularity across other Asian countries, prompting mega online retailers such as Zalora, Lazada and Shopee to adopt the date in Southeast Asia.
In many ways, the 11.11 sale is Asia’s answer to Black Friday.
Due to the popularity of 11.11, various spin-offs have emerged with similar double-digit dates such as the 9.9 sale and the 10.10 sale. These events were established to sustain consumer’s appetite leading up to the larger year-end sales.
Merchandisers at participating retailers would typically start planning for the 11.11 sale two to three months in advance. By the beginning of Q3, merchandisers can anticipate the stock required for 11.11, based on the sales trajectory of the months leading up to November.
With 11.11 approaching, we took a look back at Zalora’s strategy for the 9.9 and 10.10 sales to find out what to expect in November’s sale.
Key Highlights from Zalora 9.9 sale 2019
We analysed three Southeast Asian markets – Malaysia, Singapore and Indonesia, to highlight key data from Zalora’s 9.9 sales.
Zalora had 48% of its assortment on discount, with price-slashes of up to 89% off and additional discount codes.
Out of the three countries, Zalora Malaysia experienced the highest increase in sell-outs during 9.9, with a 73% increase in sell-out rate. Zalora Singapore experienced a similar increase with the majority of its assortment being marked down at 30-39% off, the highest discount range between the three countries.
The women’s category dominated across all countries – with an average of 80% of the items on sale dedicated to womenswear. Amongst the key categories on discount for women were Tops, Dresses and Accessories.
Pomelo was the clear winner at Zalora, as it was the top-selling brand in all three countries. The categories driving the highest sell-out for the brand were Tops and Dresses.
Both Malaysia and Singapore had the same best performing brand sequence: Pomelo, Zalora and Dorothy Perkins. Indonesia, however, saw different results: Italian fast-fashion brand, OVS and the denim-centric Born and Blessed, were the top brands.
Despite the warm climate, Outerwear emerged as one of the bestselling categories in Singapore and Indonesia, indicating shoppers are taking advantage of the markdown to buy up on counter-seasonal products at a lower price. Although not included in the list, activewear was also a popular category during the sale, which made up 5% of the total discounted products at Zalora.
The aftermath of Zalora’s 10.10 sale
The 9.9 sales were followed by the 10.10 sales in October. This time around, our analysis shows even more products on markdown- over 62% of the assortment was sold on discount across all three markets. A distinct discounting mechanic used for the 10.10 sale included using limited-time discount codes of different values to generate hype for the sale and increase traffic to the website.
Various similarities were found in the results of the 9.9 and 10.10 sales.
While womenswear dominated 10.10, there was a noticeable increase in menswear – the gender split for all markets averaged at 73% for women’s and 25% for men’s.
The majority of Zalora’s products were discounted at 30%-39% off, with over 77,000 SKUs discounted in this range. This was followed by 20%-29% off, with more than 74,000 SKUs discounted at these percentages – it is important to note that these markdowns are excluding the additional discounts applied with coupon codes illustrated in the promotional photo above.
The top-performing brands for 10.10 again included Pomelo, Zalora and Zalora Basics. Among the popular categories for these brands were Dresses, Tops and Playsuits. Interestingly, the top four best-selling categories were identical to 9.9, with the exception of the fifth spot in which Jewellery had overtaken Outerwear.
What to expect for 11.11?
Zalora’s 11.11 sale is due to start from the 8th to the 11th of November with price slashes of up to 80% off. By analysing Zalora’s 11.11 sale from 2018, this year’s 9.9 and 10.10 sales performance, we have drawn some key data-driven insights into how Zalora’s 11.11 sale will take shape:
Throughout both sales, Zalora maintained 1.00% – 1.50% sellout rate, it is most likely 11.11’s sell-out rate will exceed this – the womenswear category alone for last year’s 11.11 sale had a sell-out rate of 5.00%.
Competition among brands listed on Zalora will be tough – brands that have high visibility on the homepage will have a strong advantage.
The majority of SKUs will be discounted in the 20%-39% off range.
Womenswear will contribute a bigger share of the discounting the typical womenswear to menswear mix is 80:20.
The most consistent bestselling category during the previous sales was Tops, leading styles included T-shirts, Shirts and Blouses.
Our analysis is shaped by fashion analytics, which allows for visibility and insights into key markdown strategies such as 11.11 to help retailers understand, anticipate and prepare for major calendar/seasonal events.
Stay tuned for an update on the performance of Zalora’s 11.11 2019 sale in the coming weeks!
More than 115,000 data points were analysed on products retailing online for across US and UK markets from September 9, 2019 to October 10, 2019, as tracked by Omnilytics.
Sufiana Sharuddin is a published fashion writer, honing her interest in the industry during her time at Condé Nast College of Fashion and Design. She currently covers a variety of topics within the industry including business, technology, trends and current affairs.