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Double 11 & China's AI Advantage
Searches Surge 500% as EDC Toys Become Popular for Stress Relief in China
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Double 11 2024: China’s biggest shopping festival shifts focus from discounts to user experience and brand growth
This year, Tmall reported that over 589 brands surpassed RMB 100 million (~USD 14M) in sales during the Double 11 period, a 46.5% increase from 2023.
Meanwhile, JD.com also reached historic milestones with a 20% increase in shopping users and over 17,000 brands seeing sales growth surpassing 500%. Smaller merchants on JD.com also thrived, with over 30,000 small- to medium-sized businesses reporting more than double their sales compared to last year.
JD.com’s Jingzhuntong marketing and advertising platform was pivotal to this success, providing enhanced visibility through advanced targeting and user engagement strategies. By leveraging multiple channels—both on and off-platform—JD helped 100,000 merchants drive engagement and growth during Double 11.
The Shift from Low Prices to Quality and Brand Differentiation
Breaking from past practices, 2024’s Double 11 didn’t rely on deep discounts as a sole draw. Instead, platforms focused on creating an engaging shopping environment with a broader selection of quality products, improved logistics, and immersive live-streaming experiences.
Tmall emphasized quality with its “Billion-Yuan Subsidy” program, discounting thousands of popular products across categories like home appliances, electronics, beauty, apparel, and sports.
In parallel, JD.com launched its “National Subsidy” promotion, which provided a wide range of discounts, especially in home appliances and electronics. Through targeted offers and personalized user recommendations, JD’s strategy helped brands like Midea, Haier, and Hisense double their sales.
The Rise of Live Commerce and Targeted Promotions
This year marked a turning point for live commerce during Double 11. Tmall recorded 119 live-stream channels surpassing RMB 100 million in sales, a testament to the rising influence of professional live-stream hosts and brand-led broadcasts.
Not to be outdone, JD.com ramped up its live commerce initiatives, creating partnerships with high-profile influencers and aligning popular products with targeted consumer groups.
JD.com’s Jingzhuntong platform enabled merchants to run successful campaigns both on JD’s main site and through external media, allowing brands like Vivo and ON Running to achieve over 300% growth.
JD’s commitment to omnichannel advertising, including the launch of its “JD Navigator Program,” provided merchants with a variety of tools to maximize visibility and conversion rates, further solidifying JD’s approach to providing an all-encompassing retail experience.
While Lee acknowledges that Chinese AI remains behind the U.S. in certain respects, he counters the notion that China lags by a decade or more. Based on the rapid advancements demonstrated by companies like 01.AI, Lee believes the gap has narrowed to just a few months in key areas.
In an op-ed for the Financial Times, Lee elaborated on China's strengths, particularly in producing affordable AI inference engines.
"China excels at delivering AI applications that are both efficient and cost-effective," Lee said. "The country’s vast pool of highly skilled and hardworking engineers gives China a distinct advantage over the U.S."
Lee emphasized that while China may not be able to conduct unprecedented, open-ended research on par with the U.S. when budget constraints are lifted, it can reliably bring AI solutions to market more efficiently and at a lower cost.
In an unexpected yet strategic move, WeChat has been quietly introducing a new content feature, closely resembling the popular Chinese lifestyle platform, Xiaohongshu (Little Red Book).
Through subtle UI adjustments, primarily using red dot notifications, WeChat has begun channeling users into a dual-column, image-text format that feels strikingly similar to Xiaohongshu’s interface…
Read the article here.
In 2024, a unique trend has emerged in China, where EDC (Every Day Carry) toys have skyrocketed in popularity, especially among men. According to data from Taobao, searches for EDC toys increased by 532% year-on-year, with transaction growth reaching an impressive 345%. Over 70% of buyers are male, particularly those between the ages of 18 and 40.
EDC, originally an acronym for “Every Day Carry”, refers to small items that people carry daily for practical use.
Initially, the EDC concept emerged from enthusiasts of pocket knives and tools in Western countries, focusing on the utility and aesthetic appeal of the items. Over time, the concept has evolved, and now includes stress-relief toys like spinners, magnetic clickers, and “slap coins,” which have become a favorite pastime for many men looking for a way to unwind.
These toys offer a tactile experience that has won over a large portion of the male population. The appeal of EDC toys lies not just in their function but also in their craftsmanship, design, and ability to provide an escape from the pressures of daily life.
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