Lacklustre Launch: The hype on Singles’ Day was first seen on 2nd November in Zalora, anchored by its “Make A Wish” campaign. However, the actual traffic only began to lift nearing the Singles’ Day weekend on 9th November (Thursday), which was also the day the discounts were launched.
Full Price Sells: Sell-out for womenswear at a full price increased in the week of Singles’ Day sales, as much as 3x against the prior week despite a small contribution. Activewear, which bagged the 5th top performing category, had the most full-priced sell-outs.
These findings demonstrated that while discounts were appealing, consumers continued to shop based on preferences other than just price alone.
Replenishment is Key: Most brands began stocking for the sale from a week before. Dresses received the highest replenishment five days before 11.11 and went on to achieve the highest sell-out rate amongst the top 5 categories at 6.46%, with a sell-out volume of 983 SKUs, just 4 SKUs less than tops.
The Winning Brand: Mango was the leading brand for womenswear, dominating sell-out SKUs and drove above average sell-out rates across Tops, Dresses and Bags.
Next Steps for Brands
Launch Strategy: Brands should not hastily jump on the bandwagon if they do not have a compelling product or campaign to entice the consumers.
Without a strategy and planning in advance, a longer activation window prior to Singles’ Day weekend would lead to ineffectiveness and cost inefficiency.
Build the Right Assortment: While discounts can be appealing, our findings had shown that consumers were willing to pay more for the relevant styles and colours (most evident in the case of Tops, Dresses and Shoes). Therefore, brands should not regard Singles’ Day as an avenue to just clear slow-movers.
Aiming to build the right assortment should be the focus and it starts with understanding the brand’s own consumer profile, as well as its competitors. Product and merchandising strategies may include:
- leveraging on its existing bestsellers with timely replenishments;
- perform competitive shopping to identify others’ bestsellers/volume drivers/pricing ladder for opportunities;
- develop an exclusive range catered for the event to drive PR awareness;
- combine the strategies above for maximum impact.