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Wednesday
Dec052018

Singles Day in China & the E-Commerce Possibilities

On last Saturday’s Masters of Spin segment we discussed the huge opportunities of e-commerce in China. A good case study is the Australian skincare brand, Du’It, which amassed $2.5M on Alibaba’s Singles Day sales.

Also discussed was “another” real estate company attempting a little shockvertising with semi naked models used to promote a house.

Check out the segment, transcript below.

Monque Wright: Let's just show you all our Christmassy we are.

Basil Zempilas: All 42 of them.

Monque Wright: Yes now, you've a lot. An Aussie couple who used their humble home in Sydney as an office has turned a small idea into a 35 million dollar empire.

Basil Zempilas: This is so, I  love these success stories. Just 15 employees, the skin care brand called "Do It", I think, raked in 2.5 million dollars in just one day. All thanks to the Chinese shopping event, Singles' Day, which we've heard so much about. Our masters of Spin joint, our now advertising experts, Matthew Bywater and Dee Madigan.

Good Morning, to you both.[crosstalk 00:00:44] Matthew lets start with you. How much of a game changer is it to enter the Chinese market? I think we getting a pretty strong clue here.

Matthew Bywater: This is huge; if you look at Ali Baba who dominates our market, they have 80% of the e-commerce market, in China. They will have, the Chinese market, in the next two years, will be about 58 - 60% of the total e-commerce market. 

But to put it in perspective, Singles' Day this year, topped 30 Billion dollars US. Now if you compare that to Black Friday Amazon, last year I think about 5 Billion dollars. 

Monque Wright: Wow!

Matthew Bywater: So they in the right place at the right time.

Monque Wright: But it all started as a bit of a joke really-

Matthew Bywater: Yeah.

Monque Wright: Just like Singles' in-

Matthew Bywater: 2009

Monque Wright: China. Yeah.

Matthew Bywater: They did 7, no 8 Million dollars the first year. 8 million dollars [crosstalk 00:01:23]woman

Dee Madigan: I think it started for blokes that it was Bachelors' Day first, then they called it Singles' Day and the reason is, because the ones, the one,[crosstalk 00:01:30] one, one, and now as I've said it's four times bigger than the two massive Americans' shopping days.

Monque Wright: The two and a half million dollars in a day, look any business would be mad not to get on board.

Matthew Bywater: Yeah.

Monque Wright: But how, how do business get on board?

Dee Madigan: Well they got on board when there was a really cold, a big cold snap in China, everyone's skin was obviously, you know, your skin dries out. So they actually chose a time and went.

Monque Wright: Right.

Dee Madigan: There, so it was just clever, clever marketing. Right time, right place. And once you get into the Chinese market.

Matthew Bywater: So are you doing your own website or are you using somebody else's website, because obviously you going to need to know language and all of those sorts of[crosstalk 00:02:05] logistics and peculiarities. How do they go about it? So they do for Ali Baba, which, I shouldn't say it for Amazon for China but its[crosstalk 00:02:13] sort of, kind of the same-

Basil Zempilas: Hmm

Matthew Bywater: -with the market. To put a perspective, there's a turn they use for Alibaba US, it's called the toll booth to the middle class.

Basil Zempilas: No?

Matthew Bywater: Because it's a growing middle class.

Basil Zempilas: Mm

Matthew Bywater: Actually Alibaba have a passport section which is their high spend people, which is 100 thousand spend 45 thousand dollars US a year on Alibaba line on shopping.

Basil Zempilas: So I don't know about you, I'm Sherlock,[crosstalk 00:02:34]now what have I got at home?

Monque Wright: [inaudible 00:02:36]Now we can do that.

Basil Zempilas: Now what do they want in China that we could make...?

Dee Madigan: But they actually started it here, they looked at, they were in a hospital something, and they saw a need for this sort of cream. So it started out of realizing that there was nothing in the Australian market that was a barrier cream that they thought was well made and made in Australia.

Matthew Bywater: Just brilliant isn't it?

Dee Madigan: It's so smart and good on them because they thought it's not a fly by night thing, they built this up slowly. 

Monque Wright: And they're doing it, you know, as a family business.[crosstalk 00:03:02]It's just fantastic! The whole family is involved. I love it!

Now desperate times calls for desperate measures, especially in the case where real estate agent, who used semi-nude models to sell a house in the US. This is interesting because it has actually got the other real estate agents up in arms about it, saying "this is actually lowering the tone of our industry". Which, is saying a lot.

Matthew Bywater: Yeah, it's...well...Yeah. The question I always had news is, when every time you doing a piece on market or advertising IE hence you always, detracting from it and the problem here is, you talking about people spending generally a large amount in a lifetime on a 20 or 30 year mortgage. Does this build trust? Trust is a high factor here. It doesn't work well for him. 

Yeah, They gets lots of clicks and views, but we don't even know if they're clients.

Dee Madigan: And the house hasn't sold. And that's the thing is. You paying money for all those people to look at it-

Matthew Bywater: Mm

Dee Madigan: Who are not doing anything. If you selling your house, you've only got a certain amount of people who are going to look at it anyway. You actually better off putting that money into search engine optimization, so every word they look for, you answer.

Basil Zempilas: Now the pictures were taken off the website eventually, which obviously makes sense. I don't know about you guys but if we've got a big purchase or just interested in looking. Amy and I'd sit down in front of the laptop together. And if those pictures come up, what do reckon going have another laptop?

Dee Madigan: Yeah, exactly it's putting off female buyers particularly and I don't think male buyers. It's a family home, you right, they're looking for it as a couple.

No

Matthew Bywater: Yeah, cheap tricks. It's just cheap tricks.

Monque Wright: I did like the real estate agents response, when they were told, she was told, it was a female, that there had been heaps of complaints and she said " Oh Sweet"

This means she[inaudible 00:04:38]. She got six people to look through the house.

Dee Madigan: And no ones bought it.

Basil Zempilas: And that Alibaba, I wonder if they need Christmas trees in China? I've plenty of those.