Platform Fragmentation Reshapes China's Double 11 Strategy

Executive Summary#

China's 2022 Singles Day was the first in which shoppers' attention and brands' promotional budgets were spread across several marketplaces at once, as content-led platforms such as Douyin (抖音) ran Double 11 campaigns of their own.^[1] On a leading marketplace, sales across its largest categories were almost flat at CN¥ 301.6 billion, held back by a promotional period four days shorter than in 2021 and by pandemic restrictions on discretionary spending. The average selling price rose 7.57%.^[2] This analysis examines why the spread of the festival across platforms is leading brands to rethink how they invest in Double 11, and which categories held up best as shopping habits changed.

Double 11 Spreads Across More Platforms#

The arrival of content-led platforms in the Double 11 promotional cycle was the largest structural change to the festival in 2022. For years brands had planned Singles Day around a single marketplace and put most of their promotional budgets there, and the 2022 cycle changed that calculation.

Three forces came together to change the conditions brands faced:

• More platforms: Douyin and other content-led platforms ran their own Double 11 promotions, so shoppers and marketing spend were spread across more marketplaces than before
• A shorter period: The 2022 promotional period ran from 24 October to 11 November, four days shorter than the 2021 period (20 October to 11 November), which left less time for shoppers to buy
• Pandemic restrictions: Sustained COVID-19 control measures held back discretionary spending, particularly in fashion and lifestyle categories

The result was a festival in which competition for each consumer's attention became more intense. Brands that had concentrated their Double 11 investment on one marketplace faced a choice between keeping that focus, at the risk of missing the audience on content-led platforms, and spreading their investment across platforms, at the risk of a smaller impact on each.

Shoppers Spent More on Each Item#

On the leading marketplace in our data, sales were almost flat and the number of items sold came under pressure, while the average selling price (ASP) rose 7.57% to CN¥ 158.74. We believe this shows that shoppers became more deliberate in their purchases, spending more on each item and buying less on impulse than in earlier Double 11 festivals.

The rise in ASP may also be connected with the spread of the festival across platforms, since shoppers who divide their attention among several marketplaces may become more selective about what they buy on each of them. For brands this premiumization brings an opportunity, because higher margins per unit make up for some of the pressure on volume, and also a challenge, because holding revenue steady calls for a presence on more than one platform.

Considered Purchases Held Up Best#

The categories that held up best in 2022, such as household furniture, health food and outdoor goods, are considered purchases that shoppers tend to research and compare before buying, while fashion, beauty and accessories came under more pressure. We believe this pattern reflects the effect of the pandemic on discretionary spending as much as the change in where consumers shop.

Domestic Brands Gain Ground as Platforms Multiply#

Chinese domestic brands took a larger place among the leading brands in many categories during the 2022 Double 11. We believe this may partly reflect how quickly domestic brands adapted to selling on several platforms, since many of them were already operating on Douyin, Kuaishou and Pinduoduo (拼多多) as well as on established marketplaces. They were therefore well placed to hold their total market share by adding up sales across platforms, while brands that relied on a single marketplace had less room to make up for slower trading there.

The brands at the head of most categories changed little, which suggests that brand loyalty and marketing investment kept the largest brands in place. The changes in the wider lists of leading brands suggest that the middle of the field is where the spread of shopping across platforms has the largest effect.

Strategic Implications for Brands#

The 2022 Double 11 results carry clear strategic implications for brands operating in China's e-commerce market:

• Allocate budgets across several platforms: Concentrating promotional budgets on a single marketplace leaves a brand exposed as competitors win customers on newer platforms
• Match category strategy to how each channel is used: We believe categories that sell through visual discovery need a strong presence in content-led commerce, while considered purchases depend more on brand trust and detailed product information
• Premiumization can offset pressure on volume: The 7.57% rise in ASP shows that brands which deliver genuine value have room to hold their prices
• Domestic brands have a structural advantage: Their existing presence on several platforms puts them in a good position as shopping spreads across more marketplaces

Key Takeaways#

• Content-led platforms such as Douyin ran their own Double 11 promotions in 2022, which spread shoppers and marketing budgets across more marketplaces
• A shorter promotional period of four fewer days and pandemic restrictions left sales on a leading marketplace almost flat at CN¥ 301.6 billion
• The average selling price rose 7.57% to CN¥ 158.74, as shoppers spent more on each item they bought
• Considered purchases such as furniture, health food and outdoor goods held up best, while fashion, beauty and accessories came under more pressure
• Domestic Chinese brands took a larger place among the leading brands in many categories, helped by their presence on several platforms

## About the Data

This analysis draws on Moojing Market Intelligence data covering Q4 2022. Moojing analyses brand and category performance across major Chinese e-commerce platforms. The sales figures in this article refer to one leading Chinese marketplace unless otherwise specified. For full methodology and additional insights, see the complete Singles Day E-commerce Review whitepaper.