Singles Day Sees Low-tier Cities Sales UP, HK Stock Market Welcomes A Chinese Retail IPO Trend | Weekly
What to notice for this year’s Singles Day
Last year, Alibaba didn’t disclose the full sales results for its Singles Day shopping extravaganza, which was a sign that the hype cooled down. At the same time, the competition among major e-retailers is picking up with Xiaohongshu, Bilibili, and Douyin joining the game.
However, Singles Day remains not only China but also one of the world’s biggest online shopping festivals, this nearly two-week-long event is still worth following. Here are some key points to notice:
International brands are losing their lure and the Guochao trend is winning over.
According to Tmall, the number of Chinese brands that recorded over 100 million sales is 243, the overall number is about 402, and over half are Chinese brands. Meanwhile, C-beauty brand Proya beat L’Oreal and Lancome in terms of turnover this time. Among 6 C-beauty brands have entered the top 20 this year.
There are more growth opportunities below three-tier cities, but they require deep localization to tackle it for international brands.
According to Tmall, more than 20 million new purchasing users and more than 140 million new orders in cities below the third tier.
Hong Kong Stock Market Welcomes a Chinese Retail Brand IPO Trend
Good news for the Hong Kong stock market, one of China’s biggest Puer tea brands Lancang Ancient Tea eyeing an IPO following a trend of consumer goods companies going public in Hong Kong.
At least 10 companies including Keep, Pagoda, and Shiyue Daotian have already made their debut in the Hong Kong stock market.
There’s also a long waiting list with a number over 16, including KK Group, Cha Panda, Lala Move, Cainiao, and SF Express.
Hangzhou SKP Suspended
The expansion of SKP, China's most successful luxury mall, has not been a smooth road. Apart from its home base in Beijing, it has hit a cold streak in other cities. The brand's construction project in Hangzhou has now been halted for unknown reasons.
Beijing Hualian (SKP's parent company) had splashed out $4.8 billion for the site currently in the heart of Hangzhou's Qianjiang Century City. Currently, SKP is only present in Beijing, Xi'an, and Chengdu, but is expanding to Hangzhou, Wuhan, Kunming, Hohhot, and Hefei.