In this article, EBRAND’s Head of the Chinese Market, Sophia Lee, provides an insider’s perspective on 11 11. We will trace the event’s history and the roles of various platforms, before examining the emerging trends that shape its future. Most importantly, we will also explore how brands and consumers can maximize their opportunities, while mitigating the risks that come with the event’s staggering scale.   

The evolution of 11 11: Modest promo to global shopping event 

What began as a limited online promotion since transformed into the world’s largest shopping festival. Now celebrating its 15th anniversary, Double 11 has outpaced both China’s 618 festival and Western shopping events like Black Friday. The Double 11 was originally a playful nod to singlehood, as it represents four silhouettes standing together in solidarity. Today, it symbolizes a major consumer event, as platforms and brands rally to offer deep discounts and drive massive sales, and also growing up from a one-day-long event to a month-long event. 

The scale of 11 11 reflects its impact on e-commerce. Giants like Tmall, JD.com, and emerging platforms fiercely compete for dominance, each seeking to capture consumer loyalty and brand exposure.  The event’s size also brings challenges, as brands must stay vigilant against counterfeiting and fraud risks, navigating the complexities of this global shopping phenomenon.    

Double 11’s major players: Alibaba, JD.com, and Pinduoduo 

Each year, the scale of 11 11’s scale astounds business leaders and economists alike. According to Forbes, the 2023 event saw 402 brands surpass ¥100 million ($13.72 million) in gross merchandise value (GMV) each, with 38,000 brands more than doubling their GMV from the previous year. Luxury brands also capitalized on this massive consumer event, as 200 of them launched over 10,000 new or exclusive items on Tmall—many of them China-exclusive or limited editions. It’s not even the eleventh of November yet, and the cumulative sales have already exceeded 845 Billion RMB so far. 

The 4 main players, each bring a unique focus to the event, carving out distinct consumer niches. Alibaba’s Tmall platform emphasizes premium goods and daily necessities, drawing international and domestic brands keen on brand visibility. JD.com, known for its logistics and efficiency, attracts consumers looking for fast delivery and tech-forward offerings. Pinduoduo, meanwhile, appeals to price-sensitive buyers, excelling in group-buying deals and in combination with its “Billions in subsidies” slogan ( 百亿补贴 ), provides a unique attractive option to the consumers. Douyin, on the other hand, as a popular social media platform, fills the gaps of “unrealized interest” in traditional ecommerce platform, rely on the algorithm to recommend gratifying products or coupons to the users. 

However, these platforms each faced ups and downs. The COVID-19 pandemic initially drove record e-commerce growth, but subsequent economic challenges slowed spending. Double 11 sales growth fluctuated over time, revealing both a maturing market and changing consumer behavior. Today, shoppers increasingly value quality and affordability, often prioritizing deals over brand prestige.  

But how big will Double 11 become this year? As global trends reshape consumer expectations, the future of Singles’ Day could surprise us all.  

Emerging trends shaping 11 11

Double 11’s evolution reflects a remarkable transformation across the entire ecommerce landscape. What started as a small sales promotion for a few Taobao sellers has expanded to encompass major platforms like Tmall and JD.com, embedding the event within every facet of China’s ecommerce ecosystem. Now, platforms like Temu and Shein, a Singaporean player, join the fray, marking Double Eleven as a global phenomenon. These international players introduce the excitement and scale of the ecommerce event to new audiences, amplifying its reach beyond China’s borders.   

Social media drives significant change during the ecommerce event, as interest-based sales gain traction among younger consumers. Brands leverage social platforms to connect with their audience through influencers, livestreams, and engaging content. This shift blurs the lines between social media and shopping, transforming 11 11 into a lively experience driven by consumer interests and online interaction.  

Physical malls also join the event, promoting heavy discounts to attract shoppers into brick-and-mortar stores alongside online channels. In a post-pandemic world, this integration of online and offline shopping becomes crucial for boosting consumer spending. Some regions even see local governments issuing consumption vouchers to encourage spending, highlighting the event’s role in stimulating the economy. Together, these emerging trends show how this ecommerce event has evolved from a simple shopping day into a multi-faceted, globally recognized retail spectacle that becomes more dynamic each year.  

The risks: Counterfeits and scams

As the excitement of 11 11 draws consumers in, it also creates fertile ground for counterfeit and low-quality products. Scammers capitalize on the frenzy surrounding major shopping festivals, using time-limited promotions to entice impulsive buyers. With the allure of significant discounts, shoppers rush into purchases without thoroughly checking product details, specifications, or seller credibility. This impulsive behavior makes it easy to overlook red flags, leaving consumers vulnerable to counterfeit items that fail to deliver on quality or functionality.   

EUIPO reports estimate that counterfeit products account for up to 20% of all online sales in certain sectors, illustrating the vast scale of the problem. The surge in counterfeit goods endangers consumers, who may end up with subpar or unsafe products. Counterfeiting also threatens reputable brands. Targeted brands suffer damage to their reputation and their ecommerce revenue.  

For more insights into the risks of counterfeiting in Chinese ecommerce markets, check out our guide on combating counterfeiting. This guide includes strategies to determine if your brand is under threat. By staying informed and proactive, brands and consumers can navigate the challenges of 11 11 with greater confidence.  

Staying safe on 11 11: Trends and strategies

As each year of 11 11 progresses, brands and authorities learn hard lessons about counterfeits and scammers. Increasing awareness prompts more business leaders to fight back, especially with the support of brand protection experts.  

Ecommerce platforms also intensify their efforts to protect intellectual property (IP) and safeguard consumers. They combine advanced technologies with manual screening processes to effectively combat counterfeit products. AI technology, such as image recognition and keyword filtering, helps them identify and reduce the circulation of infringing items. Additionally, manual reviews ensure they catch as many violations as possible.  

Recent legislative advances in China, such as the implementation of the E-commerce Law, also go some way towards bolstering IP protection. Increasing cooperation between ecommerce platforms and regulatory authorities strengthens enforcement efforts, as industries work to turn the tide against scams and counterfeit goods. 

Conclusions: Seizing opportunities and tackling scams

All in all, we’ve explored the remarkable trends, scale, and evolving threats surrounding Double 11 as it approaches its 15th anniversary. This online shopping extravaganza underscores the dynamic shifts in consumer behavior, the immense economic impact, and the relentless challenges brands face from counterfeiters and scammers. Platforms, brands, and authorities already work to protect consumers and secure revenue during ecommerce events, with ongoing efforts in awareness and legislative support.  

While awareness and legislation go so far in the fight against scammers, brands often benefit from advanced tools and expert support. To see what’s out there, impersonating your business online as we await another ecommerce spree, get a free brand audit with the EBRAND experts. 

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However, as enticing as this virtual marketplace appears, brands and consumers must prepare for the risks as well as the rewards. Viewers encounter misleading promotions and counterfeit products, while brands face challenges like reputation management and compliance issues. Beyond that, staggering amounts of money flows through these platform, so understanding their intricacies proves crucial for businesses and consumers worldwide. In 2022, the livestreaming ecommerce market in China generated approximately $423 billion in sales, as a significant force in the retail sector.  

Today, we have the privilege of hearing insights from our Regional Lead in China, Sophia Lee. Sophia delivers a first-hand account of the current livestreaming landscape. This guide covers the phenomenon’s growth trajectory, and the critical factors that shape this dynamic industry. 

The Current Situation of Livestreaming Ecommerce 

Over the past few years, livestreaming ecommerce emerged as a powerful sales channel in China. Major platforms like Taobao Live, Douyin, Kuaishou, and Xiaohongshu lead the charge, thanks to livestreaming celebrities drawing huge crowds. These platforms cater to diverse user groups and preferences, each with unique characteristics that influence how brands engage with consumers. 

Taobao Live stands out with its many top livestreamers and a high authenticity rate, providing a platform where flagship stores showcase their products effectively. As of 2023, Taobao Live maintained over 80 million daily active users, demonstrating its significant reach.  

Meanwhile, Douyin employs interest-based ecommerce strategies, offering precise recommendations based on users’ short video preferences, creating a more tailored shopping experience. With around 600 million daily active users, Douyin solidified its position in the market.  

Kuaishou, on the other hand, focuses on lower-tier markets and has a relatively lower emphasis on product promotion, catering to a unique demographic that values affordability.  

Lastly, Xiaohongshu delivers an emerging platform popular among young audiences, featuring trendy items and outdoor products, making it a hotspot for lifestyle-oriented content, attracting over 200 million monthly active users. 

As livestreaming ecommerce continues to thrive, the diversity of content lends new dynamics to the threats and opportunities available. Consumers find everything from beauty and clothing to food and daily necessities in this expansive landscape. Market diversity not only enriches the shopping experience but also reflects the evolving preferences of the modern consumer. 

The Advantages and Disadvantages of Livestreaming Ecommerce 

Livestreaming offers several advantages that appeal to both consumers and brands. For consumers, it provides lower prices and immediate feedback, facilitating faster decision-making. According to a survey, 66% of consumers prefer shopping through live streams because of the interactive experience. They can enjoy the convenience of shopping from home, experiencing products almost as if they were in a physical store. For brands, livestreaming allows them to reach a broader audience and present products more effectively than traditional marketplaces, with conversion rates soaring as high as 30% in some cases. 

However, the rise of livestreaming ecommerce also brings inherent risks. The quality of products varies significantly among different livestreamers, opening vulnerabilities around alleged false advertising, as exemplified by Xiaoyang’s Meicheng Mooncake incident. In this incident, reports show that a Chinese livestreamer sold hundreds of millions of dollars worth of cakes online. These sales sparked investigations after consumers complained and reporters questioned the legitimacy of the products and the company that distributed them. 

Beyond that, the low entry barriers to this space underpin a resurgence of counterfeit products, challenging user trust in the marketplace. One recent report indicated that counterfeit products account for 20% of all livestreamed sales. Most livestreams occur outside of working hours, resulting in higher monitoring costs and complicating evidence collection for any disputes. 

Future Development Trends 

Looking ahead, the future of livestreaming ecommerce holds numerous opportunities, particularly through technological advancements. The application of VR and AR technology can enhance the shopping experience, especially in the beauty and clothing industries, allowing consumers to visualize products better before making a purchase. Additionally, AI-assisted personalized recommendations are becoming more precise, although they may sometimes lead to mismatched products, potentially frustrating consumers. 

As the market grows, regulation and standardization will be crucial. Government policy increasingly regulates ecommerce livestreams, clamping down on tax evasion and counterfeiting with bans and fines. One recent case saw a streamer fined $210 million for tax evasion, as reported by the BBC. According to recent statistics, the Chinese government plans to increase regulations surrounding livestreamed sales this year. Industry self-discipline also proves essential, as platforms work to improve rules and enhance IP enforcement channels. Ultimately, brands must also take control of their own products on ecommerce livestreams. Collaboration between brands and online brand protection experts helps combat infringements and protect consumers, on ecommerce livestreams and beyond.

In recent years, livestreaming entered the mainstream in China. Low prices and convenience benefits many brands, showing a thriving overall trend. The phenomemon, and its inherent brand risks, show no signs of stopping, as experts expect that the market will continue to grow by 20% every year for the next five years. This trajectory cannot be ignored, and nor can the threats it poses to brands and consumers.

Conclusions 

As we witness the evolution of livestreaming ecommerce in China, it’s clear this trend is here to stay. We’ve explored the mainstream platforms leading the charge, including Taobao Live, Douyin, and Kuaishou, each attracting unique user groups. Our guide also highlighted the diversity of content—from beauty and clothing to food and daily necessities—and the advantages of this shopping format, like lower prices and immediate feedback. However, we also addressed the inherent risks, including quality variability and counterfeit products.

For brands, understanding this dynamic landscape is crucial to navigate the opportunities and challenges it presents. With her extensive experience in the field, Sophia Lee emphasizes the importance global vigilance an understanding required to protect IP. If you want to know whether online platforms sell your products without your knowledge, you can find out with a free brand audit.

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Rather than speculating and guessing about these trends and dynamics from a Western perspective, the most valuable expertise comes with first-hand experience and boots on the ground. That’s why EBRAND’s so happy to have Sophia Lee, our Regional Head in China and East Asia, on board. Here, we’ll explore her perspectives on East Asian ecommerce trends, and how brands can combat online scams and protect themselves in China and beyond. 

The Role of Chinese Apps in Ecommerce 

China’s ecommerce ecosystem is immense, driven by the country’s vast population and tech-savvy consumer base. Crucially, consumer apps blur the lines between ecommerce, social media, and advertisements, including multi-functional platforms like WeChat and Weibo. WeChat, with its “super app” capabilities, allows users to browse, shop, and pay seamlessly within the app, while Weibo, a microblogging platform, leverages its vast user base to promote ecommerce through influencer marketing and direct product links. In the case of Weibo, legitimate users and scammers alike project advertisements and influence rather than selling products directly, posing unique concerns for brands and businesses. These platforms earn an indispensable place in the daily lives of Chinese consumers, making online shopping a deeply integrated social activity. 

Several ecommerce platforms also play vital roles in China’s digital marketplace. Taobao, Tmall, and JD.com represent the three of the most popular offerings. Taobao, a consumer-to-consumer platform, attracts attention with its vast array of products at competitive prices. Tmall, a business-to-consumer platform under the Alibaba Group, focuses on higher-end branded goods, providing a premium shopping experience. JD.com, another leading platform, earns renown for its efficient logistics and quality assurance, making it a preferred choice for electronics and home appliances. Together, these platforms create a dynamic and comprehensive ecommerce ecosystem that drives China’s digital economy.  

However, ecommerce never stays still, and since the pandemic, newer players increasingly take advantage of the flourishing market. Douyin and Pinduoduo pitch a similar angle to Taobao with low prices and broad offerings, meaning that brands must keep tabs on a variety of platforms to maintain a well-protected online presence. 

Influencers, KOLs, and their Impact on Ecommerce 

East Asian markets offer a few key points of difference from their Western counterparts, to which forward-thinking businesses around the world must pay attention. For example, Chinese ecommerce trends sway heavily on the say of celebrity influencers known as Key Opinion Leaders (KOLs). Their endorsements make or break sales trends, often shifting thousands of units in mere seconds. One China’s of most famous KOLs, Li Jiaqi the “lipstick king”, reportedly made more than 235 million Euros in sales in 2021 alone.

Platforms like WeChat and Weibo leverage KOLs to promote products, playing a fundamental role in shaping buyer intent and purchasing decisions. Platforms like Douyin and RED feature more KOLs because they are more popular among young people. The social platform RED almost serves as a search engine when people experience any problems in their daily lives.  

Ecommerce Events: The Chinese Black Friday

When it comes to sales in China, events like November 11th (Double 11) exemplify the scale of Chinese ecommerce, often surpassing Black Friday in sales volume. These events routinely set global records, highlighting the immense purchasing power and digital engagement of Chinese consumers. Besides Double 11, the Chinese ecommerce calendar also comes to life again on June 18 (618). 618 presents another “Black Friday” level promotion in the middle of the year, showing Chinese ecommerce doesn’t need an off-season. 

Alongside these impressive trends, the market also faces challenges such as scams and counterfeits. The rapid growth of online sales has attracted fraudulent activities, including fake products and misleading advertising. Both domestic and international consumers have encountered issues with product authenticity and seller credibility. Chinese authorities and ecommerce platforms have responded with stricter regulations and enhanced verification processes to combat these problems. Despite these efforts, combating scams and counterfeits remains an ongoing battle in China’s booming ecommerce landscape, crucial for maintaining consumer trust and sustaining long-term growth. 

Production Hubs and the Birth of Superfakes  

Key regions in China renowned for manufacturing play pivotal roles in global supply chains. These areas are hubs for diverse industries, from electronics to textiles, benefiting from skilled labor and infrastructure that support efficient production and export capabilities. Amongst these hubs lurks a dark underbelly of counterfeiting and ecommerce scams, where criminals skim huge swathes of cash from innocent producers and consumers alike. 

For example, the rise of “superfakes” represents a sophisticated evolution in counterfeit production. These products mimic high-end brands with remarkable accuracy, often using advanced manufacturing techniques and materials that closely resemble authentic goods. Such “superfakes” exploit loopholes in intellectual property protections and pose significant challenges to both consumers and brand owners. The anti-counterfeiting efforts from the government and brand owners often tackle some of the “obvious counterfeits”, so counterfeit scammers upped their expertise around IP as well as manufacturing. Counterfeit listings now hide key information to avoid being detected and punished, so brands require much more effort to track them down online. When counterfeits outstrip the genuine article on manufacturing and marketing, legitimate businesses need comprehensive solutions to protect their brands. 

The Numbers at Play  

These issues may seem abstract and far-flung, but the numbers at play put them in stark perspective. Experts at the World Trademark Review estimate that 80% of the world’s counterfeits originate in China, permeating both domestic and international markets. The economic impact is profound, with estimates suggesting that counterfeit goods cost the global economy hundreds of billions of dollars annually, severely undercutting legitimate businesses and harming consumer trust.  

According to the International Trademark Association (INTA), counterfeit goods constitute up to 2.5% of global trade, with China being a major source. Global counterfeiting accounts for $2 trillion in sales every year, while also sapping countless jobs, livelihoods, and business fortunes. With these numbers increasing annually and showing no sign of slowing, businesses must take their fates into their own hands, and explore effective solutions for tackling counterfeiters and protecting legitimate ecommerce. 

Clearly, the idea that one state enforces against counterfeits and the other gives them free rein presents a vast oversimplification: the reality proves far more nuanced and ever-changing. Despite these complexities, all regions report substantial revenue losses due to scams, highlighting the need for international cooperation and stringent measures to protect consumers and businesses alike. 

Online Scams: China vs. Europe vs. US  

Ecommerce scams exhibit common tactics globally but vary in prevalence and impact across regions like China, Europe, and the US. Common tactics include fake websites, phishing emails, and counterfeit goods advertised as genuine. Regulatory frameworks and enforcement actions differ significantly: China’s sheer size compared with individual European member states presents challenges around counterfeit goods due to its vast manufacturing base and evolving regulations.

However, while the EU must work hard to harmonize its various consumer protection and anti-counterfeiting regulations, China and the US enjoy the unequivocal jurisdiction of statewide enforcement agencies. The differences in stipulations and enforcement between China’s Trademark Law, the US’s Lanham Act, and the EU’s IP Directives warrant their own conversation for another day. 

Tactics and Takedowns 

Counterfeiters employ various strategies to evade detection, changing platforms, hiding from enforcers on private social media, and pioneering new platforms to launch their scams. To combat these tactics, businesses must implement comprehensive brand protection solutions. Legal support also proves crucial, with brands leveraging international intellectual property laws to pursue legal action against counterfeiters.

Major successes include large-scale takedowns of counterfeit networks, but challenges persist due to the global scale of ecommerce scams and the adaptability of fraudsters. Ongoing collaboration between platforms, authorities, and technology like EBRAND’s Online Brand Protection solutions remains essential to mitigate the impact of counterfeit goods on consumer safety and brand integrity. 

Conclusion  

In conclusion, there’s so much to explore about Chinese ecommerce landscape, but our discussion so far covers a few key landmarks. We’ve seen how platforms like WeChat and Taobao, coupled with the influence of Key Opinion Leaders, shape consumer behavior and drive significant sales volumes during events like Double 11. However, challenges around counterfeit goods and ecommerce scams underscore the importance of robust mitigation frameworks and technological solutions to maintain consumer trust and brand integrity. 

Looking ahead, the future of ecommerce in China promises continued innovation and growth, driven by advancements in AI, augmented reality shopping experiences, and the expansion of cross-border ecommerce. These developments mirror concerning expansions in counterfeiting and ecommerce scams, which brands must work hard to monitor and mitigate. As China remains a pivotal player in the global economy, its ecommerce sector will likely continue to set trends and influence the evolution of digital commerce worldwide, necessitating ongoing adaptation and collaboration across East Asia and beyond. 

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