KITA News and Reports
  • New Consumer Group · Global · Smart … Guanggun Jie is Evolving
    2018-12-04

     

    New Consumer Group · Global· Smart Guanggun Jie is Evolving

    -     KITA analyzed 10 years of Guanggun Jie trends exceeded 1 billion orders and the sales of 200 billion yuan for the first time in history -

     

    This year, the sales on Guanggun Jie (Singles’ Day) in China exceeded 200 billion yuan for the first time in history. The key trends of this year were ‘Jiu Ling Hou (born after 1990)', 'Made in Global', 'Combination of online and offline (O2O) ',' biometric authentication payment', etc.

     

    According to the report titled, ‘The Trend Changes in China’s Guanggun Jie Over the 10 Years’ issued by the Beijing branch of the Korea International Trade Association (Chairman, Kim Young-joo), Guanggun Jie marked the 10th anniversary this year and there were 1 billion orders and the sales surpassed 200 billion yuan for the first time.

     

    When Alibaba held the first event in 2009, the sales on Guanggun Jie were only 50 million yuan, but this year, ten years later, the sales skyrocketed 4270 times to 213.5 billion yuan. The number of participating brands also increased from 27 in the first year to 180,000.

     

    According to the report, there are many changes in the recent Guanggun Jie events, including consumer class, items, and distribution channels. Half of the major consumer groups of Guanggun Jie are Jiu Ling Hou, who are represented by spontaneous, cost-effective, and the mobile generation. Consumption items were limited to Chinese local products in the past, but 19,000 brands from 75 countries participated in this year. Especially, the five biggest imported products that attracted Chinese consumers in this event were cosmetics, products for babies and children, health foods, clothing, and digital home appliances. In terms of foreign direct purchase, Korea ranked third following Japan and the United States.

     

    Changes in distribution and payment services are also noticeable. Guanggun Jie in the past mainly used mobile payment for online sales. Recently, however, offline department stores and retail stores, including 200,000 Tmall smart stores and 100 Hema Xiansheng, are participating in the event linking offline with online. It appeared that 60.3 percent of the payments were made through biometrics such as mobile fingerprint and face recognition technologies.

     

    Kim Byung-yu, head of Beijing branch of the Korea International Trade Association, said, "With the emergence of a new generation of consumers with strong purchasing needs, the evolution of mobile and payment technologies, and the globalization of distribution channels, China’s  Guanggun Jie will continue to grow in the future." He also stressed, "Korean companies also need to target Chinese consumers by working together with Chinese local companies or with the products that have differentiated ideas and designs."

     

     

     

     

    < 8 Trends of Guanggun Jie in 2018 >

    NO.

    Keywords

    Main Issues

    1

    From 80s to 90s  

    - Jiu Ling Hou (born after 1990) accounts for about half of the total consumers

    2

    South, rather than North

    - Top 10 consumption cities are located in southern area, except for Beijing, ranked no.2   

    3

    From Mass Consumption to Quality Consumption

    - Consumption items changed from clothing, shoes, and bags to medical/health goods, interior goods, beauty products, and digital products

    4

    From Made in China to Made in Global

    -  TMALL GLOBAL deals with 19,000 brands from 75 countries and regions 

    5

    From Festival of China to Festival of ASEAN

    - 20 million people from Singapore, Thailand, Malaysia, Philippines, Vietnam and Indonesia participated in the event via Lazada, the largest website in Southeast Asia

    6

    Biometric Payment

    - 60.3% of the total transactions were made through biometric recognition, such as iris, fingerprint, etc.

    7

    More and faster through smart logistics

    - This year's order volume exceeded an all-time high of over 1 billion, and Alibaba responded with smart logistics warehouses

    8

    Evolved from online centered to O2O

    - In addition to online sales, TMALL’s new distribution smart stores participated in and carried out a large-scale promotion event linking offline with online

     

     

     

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