The huge shopping festival, which is held every year on November 11, has been an important window to look at the trend of the times beyond simple consumption. The 2024 Gwanggun Festival, which marks its 16th anniversary this year, has seen consumer sentiment shrink in recent years, and many felt that “the Gwanggun Festival is getting less and less.” The evidence is that the T-mall (online shopping mall operated by Alibaba), which was once held on a large scale, was not held at all this year. However, contrary to the feeling, the statistics showed rather hot heat.
According to Bain & Company, a global consulting firm, the proportion of consumers who are willing to increase their spending on the Gwanggun system has plummeted from 75% to 23% over the past three years. However, according to Singtu data statistics, the total e-commerce transaction volume of the Gwanggun system this year was 1.44 trillion yuan, up 26.6% year-on-year. What is noteworthy about the Gwanggun system is that participating platforms and consumer subjects are diversifying. This year, platforms that entered e-commerce belatedly, such as Corruption (Chinese video site) and Xiaohongsu (Chinese version of Instagram), stood out. The trading volume of corruption corruption increased 251% year-on-year, and in Xiaohongsu, the number of stores exceeding 10 million yuan in transactions increased more than five times year-on-year. In addition, this year’s Gwanggun system started about 10 days earlier than usual, and the consumption period was also long. In addition, the rapidly growing cross-border e-commerce played an important role, and according to a Beijing customs tally, the number of import and export transactions through cross-border e-commerce exceeded 600,000 during the Gwanggun system, with the total transaction amount exceeding 85 million yuan. In the case of Hangzhou Cross Border E-Commerce Comprehensive Demonstration Zone, import parcel transactions exceeded 300 million yuan during the first large-scale promotion of the Gwanggun Festival, and cross border e-commerce companies in Ningbo (a port city on the coast of Zhejiang Province, China) exceeded 4.1 billion yuan in total sales during the Gwanggun Festival.
From a consumption perspective, the “Gwanggunje” (Nov. 11) is quite a burden. In recent years, people have been talking about saving money, emphasizing cost-effectiveness. Less money is enough to buy more practical things.
It is clear that the Gwanggun system offers consumers “a chance to get more value for less money.” However, consumers are becoming more demanding. For example, there was a rumor that the return rate reached 95% this year, although the transaction exceeded 1.6 billion yuan at Tmall’s Ralph Lauren store. Consumers returned the product immediately after purchasing it because they wanted to receive a “discount.” Consumers are more likely to turn a blind eye to the Gwanggun system if a more reasonable shopping channel appears than the Gwanggun system.
Gwanggunje is celebrating Single Day and has a message of “Let’s give ourselves a gift.” This is in line with the emotional comfort of “Let’s take care of ourselves even on bad days.” Just as you can watch horror movies at any time, but foreigners feel more excited when you watch them on Halloween, eating dumplings that are delicious whenever you eat in China, you can buy them at any time, but if you buy them at Gwanggunje, you can feel strangely different.
Contrary to the prediction that it will disappear, the Gwanggun system remained strong. It has developed into a festival beyond shopping events that reflect the lifestyle and values of modern Chinese. It should be noted that the Gwanggun system has evolved from a ‘consumption industry’ to a ‘meaning industry’. Consumers now want emotional connection and participation experience with brands beyond simple purchases. This suggests that companies should convey ‘value’ and ‘meaning’ beyond product sales.
The example of Douyin (Chinese version of TikTok) illustrates this change. Douyin separately manages content and advertisements, inducing companies to produce content that contains fun and meaning, not just advertisements. Through this, companies form emotional bonds with consumers, which can ultimately lead to consumers’ purchases.
SOPHIA KIM
US ASIA JOURNAL
