China's Singles' Day 2016 could see sales exceed $20bn | KPMG | UK

China's Singles' Day 2016 could see sales exceed $20bn

China's Singles' Day 2016 could see sales exceed $20bn

KPMG UK believes that sales on Singles’ Day this year could exceed $20bn.

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The uptick is likely to be driven in part by Hong Kong and Taiwan adopting the event for the first time, as well as purchases made by China’s growing rural middle class. 

November 11th now marks a firm fixture in the Chinese retail calendar. Commonly referred to in China as Singles’ Day, the annual anti-Valentine’s celebration sees many online retailers slash prices resulting in a consumption frenzy. Last year’s Singles’ Day yielded over $14bn – more than double the $6bn in sales generated last year during the U.S. e-commerce holidays of Black Friday and Cyber Monday combined. 

Paul Martin, UK Head of Retail at KPMG, said: “Given the continual growth in popularity of Chinese Singles’ Day, there is no doubt that sales this year will be bigger than ever. It reinforces the growing buying power of the Chinese consumer and the increasing prominence of the date in the retail calendar. 

“With such consumer attention placed on Singles’ Day, we could see sales jump significantly as major campaigns launched in Hong Kong and Taiwan encourage consumers to join in the action.” 

This has followed continued investment by the Alibaba network (taobao, alipay, Tmall) in their e-commerce platforms to encourage domestic and international retailers to participate. Using Tmall Global, international businesses can sell goods to consumers in China without the need for a China business licence. Last year 30,000 international brands from 25 countries took part in the sale, all looking to target the lucrative Chinese consumer market. 

70% of all transactions were made on mobile devices during Singles’ Day 2015. Rural consumers are also key targets for retailers. A recent KPMG report found that rural consumers in China shop less frequently than their urban counterparts but spend more when they do, and are largely focussed on luxury items. 

However, Singles’ Day sales in the UK are likely to remain subdued. Paul Martin, said: “Despite the participation of international brands, Singles’ Day hasn’t yet reached British shores, perhaps in part due to the date being shared with Remembrance Day in the UK. With Alibaba now extending the event to Hong Kong and Taiwan, it is beginning to gain global momentum though.” 

To access a full online copy of KPMG’s Consumer Currents: Issues driving consumer organisations report, please click here

Ends

Notes to editors:

For media enquiries, please contact:

Simon Wilson, Assistant PR Manager

T: 0207 311 6651

M: 07758 537 3397

E: simon.wilson@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff.  The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such. iel joined KPMG in 2000 and became a partner in 2013.

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