China ripe for Western shopping days
Mindful of pleasure-seeking consumers, European companies must deliver an equally pleasant, even exciting, buying experience
China's Singles Day resulted in another resounding success story this year, with sales increasing year-on-year once more, but what about the Western-led Singles Day equivalents of Black Friday and Cyber Monday?
While European retailers and producer brands were conspicuous by their absence or weak participation in China's Singles Day consumption bonanza, it is even more remarkable, perhaps, that they have made little or no apparent effort to bring Black Friday and Cyber Monday to China.
There appears to be an assumption, particularly among European companies, that Singles Day leads inevitably to some sort of shopping hangover and that Chinese consumers take a well-earned, post-Singles Day breather for a few weeks. But is this really the case, or rather does Singles Day success signify an ever-insatiable appetite among Chinese shoppers for more consumption festivities?
In order to examine this, it is essential for European companies to better understand the changing nature of Chinese shopping behavior, with analysis and understanding that reaches beyond the tangible and visible acts of consumption.
While the Chinese economy continues its transition from low-cost production to high-quality premium brand manufacturing, it may be the case that many European companies have overlooked the fundamental change in Chinese consumer behavior. No longer is shopping about frugality and bargain-hunting; hedonistic shopping now dominates the Chinese retail environment, online as well as offline.
It is also perhaps the case that European companies simply equate Singles Day sales with discounting and attribute the ever-increasing levels of consumption to rational, price-sensitive shopping. But this misses the point entirely.
Singles Day shopping is pleasure-seeking shopping, an opportunity for fun and not just about saving money.
It is with this understanding that European companies should now consider bringing a similar shopping experience to China in the form of Black Friday and Cyber Monday.
But the European business community needs to reposition both Black Friday and Cyber Monday in the typical Chinese consumer's mind, while at the same time communicating subtle differences where Singles Day is concerned.
Such repositioning should not prove too difficult, especially where Black Friday is concerned. Originating as far back as 1952 and falling on the day after Thanksgiving, Black Friday is firmly attached to United States tradition and culture. Such an attachment and association could form the basis of any strategy to bring Black Friday to China. Any US or, more broadly, Western brand heritage and attachment is still valued highly by many Chinese consumers. But such repositioning could be damaged if Black Friday is presented to China as little more than a discounting day or weekend. Instead, Chinese consumers would attach value, and distinguish Black Friday from Singles Day, if the event is perceived as an opportunity to associate with US and Western tradition and culture. It would be very important to not position Black Friday as simply Singles Day 2.
Cyber Monday, which falls on the Monday after Thanksgiving, is viewed more in the West, and probably around the world, as an opportunity to boost online sales. Chinese consumers, who are increasingly tech-savvy and social media mad, should warm to this image and association as well.
Despite European and Western companies making little to no attempt to bring Black Friday and Cyber Monday to China, there is hope with Amazon. Once again, the US e-retailer is at the forefront, apparently making increasingly strenuous efforts to transport Black Friday and Cyber Monday to China. But where is the support, and why is Amazon left to go it alone?
Cyber Monday sales are now out, and once again, records have been broken. But to compare only financials year-on-year also misses the point, which is that both Black Friday and Cyber Monday provide an entertaining, fun-loving consumer experience. They are not simply crudely direct discounting directives.
Chinese consumers, particularly the brand and social media consuming younger generations, value a hedonistic, stimulating and exciting lifestyle, which fits perfectly with the Black Friday and Cyber Monday experience.
Younger Chinese generations, while distinctly more open, simultaneously retain such core traditional Chinese cultural values as belonging, compassion and close-knit friendships and family ties. Many Western Black Friday and Cyber Monday consumers purchase gifts for friends, colleagues and family members, particularly with Christmas in mind, and European companies need to be aware of just how many Chinese consumers now celebrate Christmas with some sort of gift purchase and Christmas gift-giving exchange.
Market-positioning Black Friday and Cyber Monday with China in mind, therefore, needs to take into consideration Christmas present purchases as yet another hedonistic shopping experience.
Mindful of this pleasure-seeking Chinese shopper, European companies must deliver an equally pleasant, even exciting, shopping experience with any Black Friday and Cyber Monday campaign in China.
Omni-channel, rather than multichannel, strategies are essential. A subtle but important difference between omni-channel and multichannel strategies and offerings is the focus on consumer experience rather than simply offering multiple methods of payment. Too many European companies operating in China still do not pay as much attention to their online offerings as they do to their brick-and-mortar ones. Any Black Friday and Cyber Monday campaign should almost exclusively involve online search and sales, and European companies need to be very well set up on WeChat, Weibo and Tmall, which dominate online shopping in China.
Amazon's efforts in regard to bringing Black Friday and Cyber Monday to China pave the way to a certain extent. Certainly, Amazon is shining a light on an exciting market opportunity for further Chinese mainland market penetration, and European companies across industrial sectors should be thankful.
However, to date, Amazon's strategies appear to be little more than crude sales promotions where large price reductions are boldly presented. Such strategies might work in the short term, but more consideration is needed where fun-loving younger Chinese shoppers are concerned.
Any advance in promotional effectiveness and overall Black Friday brand positioning, where Amazon and other Western and European companies are concerned, also needs to clearly portray distinct and meaningful differences from Singles Day.
Associations with Christmas and gift-giving at this time, together with the consequent bringing together of family and loved ones, presents an obvious Black Friday brand-building across the Chinese mainland market. Of course, Christmas does not carry the same meaning across China as it is does across large parts of Europe, but it is increasingly celebrated across China, and gifts are exchanged more and more.
All in all, Black Friday and Cyber Monday have a place in the Chinese consumer's shopping calendar, but it is up to European companies in particular to bring an emotional shopping experience in association with the Black Friday and Cyber Monday brands if success is to be achieved across the Chinese mainland.
The author is a visiting professor at the University of International Business and Economics in Beijing and a senior lecturer at Southampton University. The views do not necessarily reflect those of China Daily.
(China Daily Africa Weekly 12/01/2017 page12)
Today's Top News
- Global medical minds unleash hospital innovation trends
- Xi holds phone talks with Vietnam's top leader To Lam
- Chinese, Sri Lankan presidents hold talks in Beijing
- Xi's article on further deepening reform comprehensively to be published
- China-UK dialogue outcomes will enable them to reboot relationship
- Stellar Olympic performances spark craze for emerging sports