2018 Singles’ Day

2018.11.11 White Paper CONTENTS:

Volume I - 2018 Singles’ Day Overview

Volume II - 2018 Singles’ Day Brand Activation Review

Volume III - 2018 Singles’ Day Consumer Insight Volume I 2018 Singles’ Day Overview From fierce price marketing to ultimate user experience

A brief history of Singles’ Day

Price marketing Category upgrading Experience upgrading Large-scale Transfer to Force of the entire The rise The rise Branding and Expanding Entertainment and intensive mobile Interactions ecosystem of EC of B2C globalization categories omnichannels promotions terminals Digital synergy

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 The best is yet to come Happy Singles’ Day Best entertainment Pick your faves on JD and products on JD Make the best of Singles’ Day Follow your heart and buy something wonderful Shop around the globe Pick a genuine item among the deals Shop around the globe JD products, synonym of quality Wait a few days for the best promos? Speed matters more than discounts 50% off only for one day ‘Sandstorm’ Deals Steep discounts with a Singles' Day theme

4 Singles' Day event schedule of major EC platforms

5 Extending the Singles’ Day battlefield: participation of over 100 EC platforms

Other top EC CBEC Social EC

Gome Amazon China VIP.com Ymatou SECOO Kaola Pinduoduo

• Top quality with • Singles’ Day • Upgraded shopping • “Haitao with Ymatou!” • Collaborate with • International shopping • Singles’ Day Carnival low price Overseas shopping experience & deals • Black Friday Carnival 3000+ luxury brands carnival • Daily deals for various festival • 100% honest deals • Up to 70% off • Updated cross border categories logistics and delivery

Social EC

Xiaohongshu MOGU Youzan Selection Daling Yunji Weidian Meituan-Dianping • Must-buy for your • eCommerce livestream • Singles’ Day WeChat • Singles’ Day • Open your own • Red packets for • Launched before first order “LOOK+short video” Moments Shopping Housewares store for free Singles’ Day Singles’ Day • Presale deposits & • Offline fitting room Festival Shopping Festival • Week of Global deals MOGU STUDIO Selections

Vertical EC Boutique EC Life service

Beibei Babytree Mia Yanxuan MI Missfresh Ctrip

• Singles’ Day • Singles’ Day Gift Box • Singles’ Day Gift Box • Extra Happiness for • Singles’ Day • 100% honest deals • Singles’ Day Hotel Carnival • Collaboration with Tmall • Collaboration with Tmall Singles’ Day deposit presale • 50% off membership Hauls • Super group-buying discount

• An overview of events on some EC platforms 6 Top 4 themes in 2018 Singles’ Day

Omni- Channel & Shoppable Membership Group-buying Omni- Contents Marketing A brand new Singles’ Day Element Occasion Campaign 1 2 3 4

7 Top 4 themes in 2018 Singles’ Day

Omni- Channel & Shoppable Membership Group-buying Omni- Contents Marketing A brand new Singles’ Day Element Occasion Campaign 1 2 3 4

8 Alibaba’s battlefield extends from Online to Offline, from China to Global

Extravaganza Extended space and border: Covering 180,000 brands online, join

Taobao hands with 200,000 new retail stores nationwide offline

Consumers =

Singles’ Day Partners Lifestyle

Use Alibaba mobile apps Dingtalk Energy Station Do team tasks offline Collect energy points European and Southeast Asian consumers to join Exchange for Red Packets for the fist time

9

JD’s Singles’ Day Network and Partners

scenes Online 4 Offline JD Kepler Support on online traffic JD app drives traffic to IMC its convenience store GO Bilibili Fantasyland Douyin About 98 Endorsement JD x Bilibili Media partners of competition 160 JD Home contents & EC Zhihu Themed events at JD Marketing convenience stores 20+ JD self-service supermarkets collaboration IQIY 5000+ JD appliance Marketing stores Singles’ Day collaboration Global Shopping Festival 100,000 JD Daojia Join hands with 600,000 Overseas Southeast 1700 JD Bang brick-and-mortar stores Asian consumers service stores Create O2O shopping to join for the experience 200 JD Mon&Baby first time Experience Store omnichann QQ 微信 JD Mall 京东商城

400+ Walmart els omnichannel JD mini program intergration JD group-buying Nearly 10,000 mini program Cooperating stores

10 Social mechanism is being highly leveraged and integrated into this year’s Singles’ Day campaign

Team up to collect “energy points”, share Full occasion coverage from transportation, red packets and get carts emptied entertainment and new retail

Shopping at 200,000 stores RT-Mart x Alibaba to collect energy points New retail supermarkets

Collect energy on Easyhome x Alibaba Preview of your new home

Rural : offline village stations

11 Newest updated Alibaba Tmall app to engage urban new retail with offline resources Information for The new entry “Business Circle” to be an important store events Shopping guide O2O passway on Tmall app livestream

• Target 12 cities as future new retail hubs • Digitally transformed 200,000 stores in 100 business circles Food • Realized the concept of “Ideal 3km Home Range" Beauty in large scale • Offline events, experience activities, and Kids products recommendation based on users’ locations Fitting rooms Home life

Beijing Coupons for Tianjin Pop-up stores physical stores Xi’an Nanjing Hi-tech Wuhan Suzhou Chengdu Shanghai Hangzhou Chongqing Boot camp

Shenzhen Guangzhou

12 Online and Offline Integration Strategy by other key eCommerce platforms

Suning Store MOGU Singles‘ Day Woman Outfit Festival Attract Online traffic to Offline Store Super offline fitting room

Guide page Red packet incentives • LOOK+ short videos • New EC mechanism: livestream in • Endorsement & recommendation the forefront, factory as backstage by celebrities

• MOGU STUDIO in Hangzhou • A super fitting room connecting the Internet and fashion

• Oct 31st: Super Brand Day, • “Find the store" Function: encourage supplementing viral products consumers to scan QR codes in stores online to win red packets • Encourage offline shopping • Enhance a dual mode of app and stores

13 Pop-up stores were largely deployed by brands and eTailers for presale and consumer marketing purposes Presale online, Try offline Experience offline, going viral online • Tmall Food has opened pop-up stores in 6 cities with 18 • JD has launched JOY SPACE borderless retail pop-up stores FMCG brands, giving away samples of new products in several cities Pop-up stores in Core business circles in 289 cities 6 metropolis & 4 universities Various locations, themes

and domains Dalian Beijing Tianjin Beijing Taiyuan Lanzhou Qingdao Jinan Clothes Appliance Home Beauty Food Xi'an Zhengzhou Shangha Nanjing Shanghai Chongqing Wuxi Ningbo iHangzho Hangzhou u Fuzhou Xiamen Kunming Xiamen Shenzhe Guangzhoun Some of the cities Guangzhou Foshan Tmall collaborated with Laiyifen and The Egg House to JOY SPACE aims to enrich scene experience and present themed pop-up stores explore borderless retail

• Collaborate with well-known IPs, featuring their own traffic and attentions • Chengdu: immersive interactions with Weibo • Follow Tmall flagship stores to get tickets, driving • Beijing, Shanghai: Douyin Dance Contest online traffic • Guangzhou: highlighting ACGN culture with Bilibili • 22 spots with hidden QR coupons, aiming at enhancing interactions

14 As a brand—

• Have you also prepared omni-channel marketing strategies for consumers during this Singles’ Day campaign?

• Have you fully leveraged online and offline resources provided by eCommerce players this year?

• Have you integrated your different data assets of consumers and find the way to approach them across the channels?

• Have you invested your offline resources into the campaign and assigned online and offline team to work together?

15 Top 4 themes in 2018 Singles’ Day

Omni- Channel & Shoppable Membership Group-buying Omni- Contents Marketing A brand new Singles’ Day Element Occasion Campaign 1 2 3 4

16 Various contents have been created and distributed by Tmall and Brands to create a more easy and enjoyable shopping experience Presale Warming-up Climax

Information flows Global trends list Celebs' wishlist Tmall viral product list

• Enhance consumers' knowledge of the • Invite 50 leading vertical media to • An innovative approach for product • Viral product lists selected by Tmall, brand/company conduct product assessment and placement providing a well-received one-stop • Endorsement by cyber celebrities recommendation • There are links leading to product solution to increase shopping • 1000 live-streamers compete with • Present product trend variations pages below the video—a one-stop efficiency each other, joined by their followers based on Tmall big data solution transferring • Quickly generate users' viral item, • Consumer generated content/PGC • Accurately delivered to different recommendations into shopping and encourage sharing • Interact on Weitao to win big prizes consumer groups, effectively shortening shopping paths

17 Content Commerce strategy has been well deployed by all the leading eTailers on the site during this Singles’ Day

JD x SMZDM.com: What's Trendy list Kaola: "Childrearing" Festival Xiaohongshu: featured wishlists

Recommendations based on various occasions: • Class • Popularity • Trend • Wisdom • Attitude

Match products with different types of consumers: • Life lovers • Travallers • Highlight childrearing tips, using • Gourmets Douyin for user education • Chinese gourmets • Recruit "Trend Watchers" to try on • Romantics new products, encouraging in-depth • makers interactions • Parents' boys/girls • Pet owners • Collaborate with DXY.com, inviting • New daddies 12 experts to introduce products • Tech idealists • Gamers • Phone addicts • Geeks • Readaholics • Forever young

18 External Contents driven by new media and social platform as new touch points to recruit new users and influence their decisions

Tmall x Weibo JD x Bilibili JD x Douyin Who s the Drama Queen? Targeting celebs' followers Spice up products with ACGN '

• Password red packets to drive • Content marketing with Bilibili • Hold Douyin challenges drawing social media traffic • Endorsed by one KOL each day attention to categories/brands • Celebs post passwords on • Leave comments and interact to • KOLs demonstrate interesting food Weibo and lead followers to win shopping bonus tips search for red packets by • Contest to win a ¥5,000 bonus visiting Tmall app

19 Brands’ heavy investment in external media and content marketing as part of campaign design

Olay x Xiaohongshu By Health x Weibo #exciting# Ariel x JD 8pm x Douyin Contest

20 Pan-entertainment transformation of Singles’ Day

Oct 20 Nov 1 Nov 1 – Nov 11 Nov 11

Tmall Collection 2018 Tmall Extravaganza JDxTecent: Super Nova Games The 1st Alibaba Gala

• World's leading designers • Officially introduce 3000 must-buy • Innovatively combine shopping • A new type of variety show: gather together to launch their items, highlighting the global with sports and entertainment updating new retail and new lines shopping carnival IPs entertainment

• An international fashion trend • Reveal a list including "3000 Must- • Unit sport spirits, celebs and • Shop while watching: brands maker buy Items", "Classic Items of the online shopping in one show embedded in the plots Decade", "Trendy Items", and • Shop while watching: a "Regional Viral Items" • Promote the transformation of • Hi-tech: frequent interactions, business competition for street marketing cross-screen spontaneous fashion brands interactions

21 Tmall content-oriented entertainment shows with strong emphasis on KOLs and IPs with professional design

Introduce popular IPs to cooperate in- Self-produced PGC variety shows with depth with satellite TV, creating new Super IP broadcasts professional standards contents Category IP shows

All Super Endorsers

Food Chinese Restaurant

Beauty Sisters over Flowers

Tmall Super Day Day Up!

Appliances I'm the Future Beauty Sisters over Flowers Super Endorsers work with brands, receiving Appliances I'm the Future an audience of 1,680,000 in 2 hours and a sales over 100,000 of 7 brands All Super Endorsers

Mon&Baby Where Are We Going, Daddy? Food Chinese Restaurant

22 As a brand—

• Have you kept producing quality contents—in line with your brand image throughout the whole campaign season with quick adaptation to consumers’ taste and feedback?

• Have you customized your advertisement banner, store display and product design to ensure stable click through rate and conversion rate?

• Have you leveraged eCommerce content resources to influence shoppers’ purchase journey and integrate this with external media plan

• Are you involved in the entertainment programs these eTailers are producing with your product being embedded?

23 Top 4 themes in 2018 Singles’ Day

Omni- Channel & Shoppable Membership Group-buying Omni- Contents Marketing A brand new Singles’ Day Element Occasion Campaign 1 2 3 4

24 Both Tmall and JD offered exclusive membership programs and benefits during the Singles’ Day

Multifaceted membership Shopping deals Shopping deals Multifaceted membership

Cashback Receive JD Beans for each order Exclusive 5% off for 388 brands

Eat Markteing 5% off for all All categories: ¥100 monthly discounts

Garments: 10% off monthly deals Delivery 5% off for all 数码 Millions of membership products Watch 家电 专享 Membership: PLUS DAY ¥300 coupons 爆款

Discounts Listen ¥360 annual delivery coupon Free return and exchange policy Play

25 Brands strengthened its connection with consumers with systematic membership programs enabled by eTailers

Tmall features brand memberships Deals for new members Shopping incentives Encourage interactions to drive traffic Lucky draw Credits redeem Daily check-in

Membership coupons Free trial Invite new users

26 As a brand—

• What‘s the reward you give to the new consumers and loyal ones in this most important eCommerce event ?

• Have you integrated your CRM system with eCommerce platforms?

• Does your current CRM program have an incentive scheme for , following the trend of social marketing?

27 Top 4 themes in 2018 Singles’ Day

Omni- Channel & Shoppable Membership Group-buying Omni- Contents Marketing A brand new Singles’ Day Element Occasion Campaign 1 2 3 4

28 Group-buying and Social Shopping became a new combat zone

Pinduoduo Singles' Day Carnival: Team up on Alibaba: Low-price policy continues Lay out social shopping

• Oct 28 – Nov 16: low-price • Users can team up on Alibaba apps to collect likes. The more they collect, carnival the bigger the bonus they will finally • Drawing traffic to the receive—social media is essential for promotions and deals of each the activity category • Educate users on group-buying • Brands including Gome, against a Singles' Day backdrop Yanxuan, Dangdang, MI to • Lay a foundation for relation chains officially set their official via collecting likes flagship stores • Realize transboundary marketing by encouraging users to share contents

29 Various players have all launched group buying functions with different category focus

Suning group-buying features JD s group-buying debut Yanxuan Buy Together ' fresh food " " Huge traffic New users Orders • As low as ¥1 • 5-man groups exclusive to "Deal" Mechanism ”Traffic” new users Users share Mechanism coupons for the Encourage sharing by • Free delivery + 30-day return platform and boost platforms incentives policy, ensuring quality deals and free gifts Taobao "Black Groups"

• Launched before Nov 11, featuring social shopping among young women Suning x Unilever Brand Day • Singles' Day Wishlist • Highlight Quality & Group-buying, participated by Suning Activities—giving away • Apply JD's billion-level traffic to attract millions of new users International and self-run stores to group-buying random bonus to stimulate • Fresh food directly purchased from producing areas shopping • Possibility of free order—encourage sharing • Brand Day for bargains from leading brands • Set Oct 25 as the Group-buying Carnival Day, driving traffic • Set Nov 8 as Super Group-buying Day, driving traffic from for its mini programme Suning's own platform

30 Official brand flagship stores enter group-buying platforms, featuring time-limited deals

Walmart joined JD group-buying Dali Food joined Suning group-buying Pepsi joined Pinduoduo

*以上为部分入驻品牌 31 As a brand—

• Besides major EC platforms, have you cooperated with any emerging EC sites?

• Did you participate in group-buying events on those eCommerce platforms?

• Do you customize your products, prices, and copywriting for group-buying platforms?

32 Volume II

2018 Singles’ Day Brand Activation Review eTailers again hit new peak during Singles’ Day in 2018

Tmall Singles’ Day GMV overview Main eCommerce platform performance overview

Unit:RMB 100 million 2135

1682 Tmall logistics orders exceeded 1 billion at JD Singles Day Total Orders 1207 23:18:19 amounted to RMB 159.8 912 210 Brands turnover billion 571 exceeded 100 million 353 191 9.36 52

2010 2011 2012 2013 2014 2015 2016 2017 2018 Suning transaction amount in the first 4 seconds exceeded RMB 100million NetEase Kaola’s total sales 50 seconds broke RMB 10 billion achieved 2.4 times than that Tmall 2018 Singles’ Day GMV Omni-channel sales increased by 132% yoy of 2017 213.5 billion RMB Suning group-buying orders exceeded 80 million

34 Tmall 24-hour top brand list by category

Health and care Beauty Food Imported brand

1. SWISSE 1. Lancôme 1. Three Squirrels 1. SWISSE

2. BY-HEALTH 2. Olay 2. Maotai 2. monny

3. Bausch 3. L’Oreal 3. BestStore 3. KAO

4. Yuwell 4. Estee Lauder 4. Baicaowei 4. Aptamil

5. Durex 5. SK-II 5. Mengniu 5. Bio island

35 JD.com sold RMB 159.8 billion ($23 billion) in goods for its Singles’ Day campaign

The era of high quality consumption is approaching Smarter, more healthy and more fun

A massage chair priced over 10,000 yuan By 2:00 a.m., Noise-cancelling earphones and Drones exceeded 4 times over the same period last year sales reached 4 times of last year in sales value Pet smart products brand Xiaopei sales were 6 times of A high-end sweeping robot above 2,000 yuan the same period last year reached 8.8 times over the same period last year in sales value By 9:00 a.m., the overall sales of nutrition and health care increased by 225% compared with last year The 75-inch TV sales reached y-o-y growth of Over 400%

36 Overview of Singles’ Day brand activation

37 1000 brands joined hands with Tmall to launch the Singles’ Day 10th Anniversary Gift Box, C2B customization became a new strategy in the FMCG industry

Interesting accessories Cooperate with artist Taste innovation Celebrities endorsement Novel packaging

MMS Glico Dove Tmall Singles’ Day 10th Nivea Tmall Singles’ Bestore Singles’ Day th th Singles’ Day Fun gift box 11 color art creative gift box Anniversary Michelin Star Kitchen Day 10 Anniversary 10 Anniversary Zhu custom gift box Zhu Yilong gift box Yilong gift Box

L’Occitane Tmall Singles’ Day Bestore Tmall 10th Makeup Forever Tmall Singles’ Heineken Tmall Singles’ Day Coca-Cola Tmall Single’s Day 10th 10th Anniversary Whies Rubik’s Anniversary Van Gogh IP Day 10th Anniversary Deng Lun 10th Anniversary custom world anniversary custom taste gift box Cube gift Box version gift box-nine flavors gift box bottle

38 Brands penetrated into various consumer segments through launching Crossover Products

With KOL With cartoon With fashion With V character industry movie/games Penetrating into WeMedia and Penetrating into Anime and young group Penetrating into fashion-oriented group Penetrating into movie and internet celebrity fans group game fans group

Uni-President x Zhou Xiaocheng Hot Pot Oreo x LINE Want Want x TYAKASHA Johnnie Walker x Game of Thrones • The pre-sale Singles’ Day turnover has grown • Both Oreo and LINE targeted the • Want Want optimized its brand image among • Once launched, it was highly sought by fans more than 40 times per day, traffic and young as the key audience the young through strong exposure of “the Game of Thrones”, and the monthly conversion rates have exceeded 10 times per transaction volume of Tmall reached 4000+ day.

TOBLERONE x TongDaoDaShu 12 Coca-Cola x PINKO OKAMOTO x PlayerUnkown’s Battlegorunds constellations limited edition chocolate Old Spice x One Piece • Linked constellation fans through KOL • Old Spice teaming up with One Piece • Coca-Cola continued to deepen tis “trend” • OKAMOTO teamed up with Game IP to TongDaoDaShu to celebrate the 21st Anniversary of and ”fashion” image through cooperation attract the young group One Piece’s serial with PINKO

39 Cross-brand cooperation became an important marketing strategy to extend the brands’ product range and achieve image innovation Cooperation with the same Cross-category brand cooperation category player • Enrich product portfolio and meet more • Cross-industry cooperation mainly focused on the marketing level. It cairred out cross-category comprehensive needs of shoppers product innovation by cutting into the significant functions or characteristics of the products, and strengthens the core selling points of the products while attracting the eyeballs.

Dove &Three Squirrels Want Want & CHANDO White Rabbit & MAXAM PG & Peace Bird Chocolate & Nut Biscuits & Cosmetics Candy & Cosmetics Cleaning & Garment

PanPan Food & Zhouheiya CHANDO & HUGGIES Coca-Cola & The Face Shop HEYTEA & Tempo Biscuits & Braised dish Cosmetics & Baby Care Beverage & Cosmetics Beverage & Personal Care

40 Tmall teamed up with the brands to create the explosions by leveraging rich platform resources Tmall Joint innovation matrix

Brands

Tmall pick up alliance Lan Ganma chilli paste x For Him Magazine Durex x IP Cat’s Kitchen:Heartbeat gift box

• The traffic and conversion rate was 1.5 times • Contains Durex products and Cat’s Kitchen pop than original package after launch. rocks. Daily sales increased more than 5 times, ranked as top 2 in the pre-sale on the Tmall’s list V

500+Internet Agency KOL platforms

Mayinglong x IP On the Road Store:Acne treatment Wan Chai Pier Dumling x My Chat Poetry Club

• Mayinglong is a Chinese traditional pharmacy • Quick-frozen dumplings are packaged in the group which produces hemorrhoids cream. form of an ancient book, with famous poems Crossover Deep Precise user Mayinglong successfully entered the skin care on it. The emotional elements are added on Products customized targeting industry and broadened its diversified business the packaging, triggering social topics Content through teaming up with On the Road Store

41 Based on data analysis, JD Supermarket pushed the food brands to develop "Big and Interesting” oversized packaging

JD teaming up with the brands

eTailer

Laiyifen Giant snack Three Squirrels giant nut Baicaowei foodie • Focus on family, couples, friends gift sharing Gift Pack snack gift pack charging gift pack scene • More in line with consumer social needs • Inspire social media forwarding behavior

Consumer

Brand

Kraft One Box Lay’s chips Oreo giant snacks gift pack snack spree gift pack

42 Tech products targeting at the female embraced Singles’ Day through various special editions

Meitu – Cartoon IP X Tmall 10 years YAMAN – Celebrity’s special edition ReFa – Celebrity (Zhu Yilong)’s gift limited edition

Doraemon HelloKitty

Zhou Dongyu ReFa face Gift Box massager

X Chibi Maruko-chan Dragon Ball

Zhu Yilong’s voice customized Tmall Genie as Gift

43 Luxury brands such as SANIT LAURENT led by JD luxury online platform TOPLIFE first participated in Singles’ Day Event Brands participating in Singles’ Day

11.1-11.4 11.5-11.7 11.8-11.10 11.11-11.12

Promotion preparation Super category day Limited coupon, seckill of luxury

70% Discount

Price Deduction across brand 11.5 Bag 11.5 Male Coupon

11.7 Household product • SAINT LAURENT firstly participated the online Seckill, leading a new era of luxury’s eCommerce • The products involved were mainly long tail bags

44 Oreo innovated from packaging, products, tastes , and continued to create a delicious and fun brand image

Product innovation Marketing innovation

Biscuits+music Packaging innovation Scene innovation Taste innovation Teaming up with the young idol Wu Lei, small gifts Singles’Day unit price: RMB 99, monthly transaction volume 24,363 with the image of spokesperson

KOLs of the food and beauty fields forwarding the Music box Reserved gift box 8 DIY small mold A variety of novelty articles flavors Extend to more • A box of 8 colors Seaweed and 8 flavors consumer scenarios and stimulate more Chicken wings Mustard • Launched a colorful consumer demands: Blueberry package which • Afternoon tea Mango caters to the • Parent-Child DIY aesthetics of young • Express love women • Creative dessert Biscuit DJ accessories

45 Want Want customized special gift sets to drive traffic, and further promoted its star SKUs

Multiple gift packs to boost sales Customized products to generate buzz IP accessories to engage fans

Snack set Beauty set WANT WANT Traveling Special set • Luggage tag • U-shaped pillow Unit price: CNY 89 • Passport cover Daily volume: 15,044

Designed for Tmall 10th Single’s day Unit Price: CNY 55 Unit Price: CNY 62 Monthly volume: 73k units Monthly volume: 8k units Home • Hold pillow • Blanket Yogurt & milk Best seller Yogurt flavored cookie • Eye patch Cookie flavored milk

Coffee flavored biscuit Office • Tape Yogurt flavored candy • Memo • Sticker Unit Price: CNY 48 Unit Price: CNY 22 Monthly volume: 3k units Monthly volume: 52k units Alcohol flavored candy

46 Three Squirrels as the No. 1 brand for Foods category released series of new products during Singles’ Day season

New products released for Single’s day High-end innovative products to create exclusive experience

Upgrade existing SKUs Enrich usage occasions Follow hot topics

Traditional nuts Old-style spicy strip Brand IP on douyin

Three squirrels launched online product release in Nanjing on Nov. 7th • 5 young celebrities • 11 brand-new products • Straight-forward slogan Creative bottled nuts Spicy strip in make-up bag Spicy Spicy noodle Monthly volume: 16k units Monthly volume: 98k units Monthly volume: 86k units

47 Lancôme achieved No.1 sales among skincare and beauty category in Tmall

Pop-up installations in Paris and Fan economy Content ecosystem: Buy one get one free sale Beijing increased brand awareness boosted interests Live streaming + short videos

Five celebrities targeting different group of people, celebrity endorsement

Giant paper plane installed in Paris to promote brand's connection in China

Pre-sale sample box Live streaming with Paris team • Try out sample box for 150 yuan on pre-sale day: with get 150yuan coupon back Lancôme pop-up store in Beijing • Fun contents to emphasize celebrates brands aesthetics product advantage

An individual shoppable room in the pop-up space On-site content seeding: • Celebrity-customized Taobao short video for each product Buy one get one free sale, Paid KOLs feed and unpaid traffic marked 100% sell-through rate generated on social media

48 Pechoin with Forbidden City campaign took the essence of Chinese Beauty, marked more than 100 million GMV in Tmall

Social media warmup Wechat contents reached Viral video Tmall site followed up #Profession, makes chinese prettier# 100000+ reads “the Secret of Time” the theme of Chinese beauty 2018.10.19 2018.10.21 2018.10.29 2017.10.20-11.12

KOL retweeted/posted Appealing contents to reach Hip Pop-style MTV to reach Singles’ day GMV over 100 million key products target audiences the younger generation

A twisted-style marketing material may made the brand image more vibrant: The music video shows a mixture of Chinese rituals and modern hip-pop style, attracting the younger audiences.

49 BY-HEALTH applied differentiated promotion strategies with the main customers to attract diverse shoppers, which became a No.2 Health Care brand in Tmall during D11 Set D11 Theme to strength brand image D11 Strategy “Enjoy Nature Health Care Banquet from 23 Countries” “Differentiated Customer Promotion”

Fan Economy: New Series “Yep” Targeted at: Tmall FS Young shoppers

Stock Up: Multi-Packs Bundles Targeted at: Tmall Loyal shopper to stock up Marketplace

Rich Samples: Exclusive Bundles

JD FS Targeted at: Value for money shoppers

50 BY-HEALTH leveraged Fan Economy during D11 to successfully recruit new and young consumers to protein powder category

BY-HEALTH Fan Economy Strategy A. Set sales target to C. Both Online and Offline ads to encouraged fans to shop for icon improve exposure

600

*sold out over 130 thousand cans, D. Launched fan activities to strengthen B. Designed icon pack with welfare for fans avg. price CNY 81 conversion

Certificated by “D11 Tmall best seller list”

51 Yili targeted at ACGN fans and young generation via crossover cooperation with hot IP

Online exclusive gifting pack to drive Enhance interaction via offline Launch customized package with ACGN IP penetration and awareness respectively pop-up store X Gifting pack with attractive price to Yili X Tmall Pop up store drive volume 美少女战士 130,000 Packs were sold on Tmall Flagship store in Nov18 (16 RMB/pack)

Attract traffic and attention by celebrity effect

Premium gifting pack to create WOW experience and improve awareness Match characters with different variant of product Limited edition of 200 For sensitive Slim Slim Ultra slim packs, while 160 packs (natural & hygiene) (3D form) (fresh) were sold Levitating Moon Lamp with Promote limited pack and cool tech lamp (199 RMB/Pack) iconic cat image of Tmall Day Panty Ultra slim liner

Night

52 illuma focuses on new consumer acquisition through online and offline initiatives as well as in-site brand promotion

Omni-channel Consumer Acquisition In-site Brand Image Building

Early education focus to strengthen Online Offline professional brand image Live show by Celebrity popular talk show Customized gift endorsement to star packaging bundled create buzz with Tmall Genie for Single’s Day >100 Mn Online courses Leveraging JD’s for consumer offline events to RMB sales education increase brand on 11.11 ! exposure Consumer Emphasis on Tmall acquisition by Genie’s function of offering “buy one kid education get one free” prenatal powder

Pop-up stores to Consumer attract offline acquisition via consumers customized benefits to kids Differentiated promotion strategy via offering education funds

53 Swisse advocated Fancy Wellbeing among young generation as the key theme of the campaign 11.1 Created Weibo topic and generated Leveraged fans support for 11.7 Launched Swisseland at Taikoo Hui Shopping massive public awareness and discussion the new product launch Mall in Guangzhou

• Tmall machine for interaction • Offer snapshots with idol and flagship store coupons Idols and KOLs creating social buzz

• Experiencing the new products offline • Posting on Weibo and getting fresh drinks

54 Swisse ranked No. 1 on Singles’ Day in Imported Brands and Health Supplements

Luxury Gifts on Singles’ Day Flash sale of bestsellers on Singles’ Day reached 100 million revenue in the 1st hour

Limited buy-1-get-1-free offer of top Top sellers on the landing page sellers boosted store sales Get the second item for free or at half Top1: 357,546 items sold price during flash sale

Buy 2 at CNY 90 per bottle

Top2: 346,716 items sold

Buy 2 at CNY 70 per bottle

55 Dyson achieved 2nd ranking on small appliances list by its 3 Hero SKUs

Three trendy products HIT the high-end small appliance market

AM10 Tmall Single’s Day Supersonic HD01 V10 Absolute Humidifier Small Appliance Sales Ranking Hair Dryer(Purple) Cordless Vacuum (Blue/Silver/white)

1 Midea/美的

2 Dyson/戴森

3 ECOVACS/科沃斯

4 Philips/飞利浦

5 Joyoung/九阳 21,000+ unit sold 1,700 unit sold 3,300+ unit sold

56 Dyson launched Airwrap before Singles’ Day and created enough social media buzz to increase brand search right before the campaign

Launch Airwrap in Oct. to attract target consumers Leverage social media to increase brand exposure

Hot topic on weibo

#High-tech Hair Curler# 6.5M views & 5K discussions

“Hair Curler” and “High-tech Hair Styler” immediately became hot search terms on Baidu

dyson launched Airwrap on Oct. 16 On Singles 'Day 1,500 Airwrap sold out in 3 min.

57 As a Brand— • Have you launched tailor-made products for Singles’ Day as the requirements for brand power and product development capability have become higher and higher?

• Singles’ Day is becoming the world’s largest new product launch and innovation platform – brands could be able to increase reputation and gain new consumers through a range of product innovation activities, including teaming up with IP and KOL, launching cross-over and customization products, offering limited version of products etc.

• Game, Fashion and Art crossover products are increasingly favored by consumers and they are willing to pay for uniqueness and taste

• The success of Singles’ Day is heavily related with strong Hero SKU design, clear communication skill around product value and consumer benefits, scalable media investment and effective campaign execution with great idea and powerful consumer insights – have you done these?

58 Volume III 2018 Singles’ Day Consumer Insight Research Background

Respondents and sample size City Tier Definition

• Mobile shopper during Singles' Day • Tier 1 cities : Beijing, Shanghai, Guangzhou, Festival Shenzhen

• National sample size: 1000 (250/city tier) • New Tier 1 cities: Chengdu, Hangzhou, Chongqing, Wuhan, Suzhou, Xi’an, Tianjin, Nanjing, Zhengzhou, Changsha, Shenyang, Qingdao, Ningbo, Dongguan, Wuxi

• Tier 2 cities: Ha'erbin, Changchun, Huhehaote, Shijiazhuang, Yinchuan, Jinan, Taiyuan, Hefei, Guiyang, Kunming, Nanning, Nanchang, Fuzhou, Haikou

• Tier 3 and below cities

60 In terms of EC platform, official store and CBEC with quality guarantee wins in Tier 1 cities Shoppers in Tier 3 and below cities are more promotion-driven, preferring Taobao and other discount platform EC platforms used during Singles' Day

Tier 1 New Tier 1 Tier 2 Tier 3 and below Discount Official Stores CBEC Platforms Platforms 79% 69% 61% 55%

40%40% 32% 24% 20% 15% 12% 8% 7% 9%

Tmall FST Tmall MKT

Data Source: EC Platform in order: Taobao, JD, Tmall Super, Tmall Flagship, Tmall MKT, Q: During Singles' Day, on which EC platform do you plan to purchase? Suning, Tmall Global, Kaola, Amazon, VIP, PDD, Yanxuan, RED 61 (Muti-choice) (n=1,000) Apparel and Personal Care are top 2 categories on shoppers’ list Tier 1 shoppers take this opportunity as top up trip of Fresh Food and Beverages as well

Category shoppers planned to purchase during Singles' Day

Higher purchasing willingness of shoppers in Tier 1 62% 52% 30% 26% 24% 18% 16%

59% 54%

47% 45% 41% 39% 37% 34%

23% 19% 17% 16% 15% 13% 12% 10% 10% 8% 5%

Sports Grain & Nutrition Personal Consumer House Furniture & Dairy Mom & Fresh Powdered Apparel Snacks Cosmetics & Oil & & Beverages Alcohol Automotive Service Virtual Care Electronics Cleaning Furnishing Products Baby Food Beverage Outdoor Foodstuff Healthcare

Service: E.g.. offline SPA, airline tickets, hotel Data Source: 62 Virtual: membership on Video platform, top-up Q: During Singles' Day, which category do you plan to purchase? (Multi- for game choice) (n=1,000) Competitively low price during Singles' Day leads to high stock up and premium product purchase WOM and NPD trial also indicate that online spree is expected to be the key window of new launch

Factors driven purchase during Singles' Day

Regular stock up 82%

Premium Product 66%

WOM 59%

Exclusive NPD 53%

Innovative Product 43%

KOL Recommend 34%

Celebrity 30% Endorsement

Data Source: Q: Which factor makes you choose to purchase during Singles' Day? 63 (Multi-choice) (n=1,000) Down to category level: WOM marketing works for Alcohol and Mom & Baby, innovation attracts Healthcare shoppers more, and KOL has higher impact on Cosmetics shoppers’ decisions Factors driven category purchase during Singles' Day

Regular Premium Exclusive Innovative KOL Celebrity WOM Stock up Product NPD Product Recommend Endorsement

Grain & Oil & Consumer Nutrition & Alcohol Sports & Outdoor Cosmetics Beverages 1 Foodstuff Electronics Healthcare

Powdered House Cleaning Apparel Mom & Baby Cosmetics Sports & Outdoor Cosmetics 2 Beverage

Consumer Consumer Powdered Beverage Sports & Outdoor Snacks Beverages Alcohol 3 Electronics Electronics

4 Personal Care Cosmetics Cosmetics Powdered Beverage Powdered Beverage Alcohol Sports & Outdoor

Furniture & Nutrition & 5 Mom & Baby Beverages Dairy Products Apparel Snacks Furnishing Healthcare

Data Source: Q: During Singles' Day, which factor makes you to purchase this category? 64 (Multi-choice) (n=1,000) Regarding budget, most shoppers plan to spend 1k-5k in total New tier 1 catch up with Tier 1 with higher penetration of high-spending (5k-10k budget)

Budget for Singles' Day  Not sure  > 10k RMB 11% 8%  5k-10k RMB 17% 28%

61% 58%  1k-5k RMB 57% 52%

25% 28%  < 1k RMB 20% 14%

Tier 1 New Tier 1 Tier 2 Tier 3 and below

Data source: 65 Q: What’s your budget for this year Singles’ Day?(n=1,000) Over half of shoppers plan to spend more this year On the other hand, rational ones decide to focus on necessities only

Tier 1 shoppers increase the budget significantly Part of shoppers are more rational

Budget compared with LY Growth rate of budget Reasons of reducing budget

Increase Decrease Almost the same Not sure 10% 30% 50% 53% “Be rational, only buy 3% Tier 1 31% 22% things I do need”

20% New Tier 1 31% 14% 30% “Discount is not 52% attractive at all” 26% “Reduce spending Tier 2 33% 16% 25% considering slowing down economy”

Tier 3 and below 32% 14% 21% “Stock up too much and occupy much place”

Data source: Q: Comparing with Y2017 Singles' Day, whether you plan to increase or decrease the spending this year? (n=1,000) 66 Q: Why you plan to decrease the spending this year?(n=247) One month prior to Nov 11th, most shoppers start to draft wish list and add to shopping cart Sophisticated shoppers in Tier 1 even start 2-3 months earlier

Tier 1 shoppers plan much earlier Adding to Shopping cart is the major way to make plan

Planning time prior to Singles' Day Ways to draft Singles' Day shopping list

Tier 1 New Tier 1 Tier 2 Tier 3 and below

41% Add the item into shopping cart before ahead, and pay attention to the promotion

30%

Add the item into My Favorite 18% % before ahead, and pay attention to the 27 promotion

6 months 2-3 months 1 month 1 week I always prepare for % Make detailed shopping list the shopping list 20

Data source: Q: How long will you prepare shopping plan in advance?(rolling back from 11th Nov)(n=883) 67 Q: Which situation suits most while you’re making shopping plan? (n=1,000) To prepare for once a year shopping fest, “hand-choppers” would hold up budget before and after Singles’ Day

Will you reduce spending before Singles' Day? Will you reduce spending after Singles' Day?

67% 66%

33% 34%

WILL WILL NOT WILL WILL NOT DECREASE DECREASE

Data source: Q: Will you decrease your spending before Singles' Day? (n=1,000) 68 Q: Will you decrease your spending after Singles' Day? (n=1,000) This impact usually lasts from Sep. to Dec., one month before/after Singles’ Day, but it is more significant in Tier 1, where the impact extends to two months

How long will you decrease spending How long will you decrease spending before Singles' Day? after Singles' Day?

 1 month  2 months  3 months  6 months and above

27% 67% Tier 1 55% 32%

14% 83% New tier 1 68% 26%

19% 79% Tier 2 67% 26%

Tier 3 and 11% 85% 70% 25% below

Data source: Q: If you’ll decrease spending before Singles' Day, then for how long? (n=1,000) 69 Q: If you’ll decrease spending after Singles' Day, then for how long? (n=1,000) Shoppers in lower tier cities participate more actively while high tier shoppers prefer time-saving way like straightforward promotion and campaign mechanism Overall experience of 2018 Singles' Day

Tier 1 New Tier 1 Tier 2 Tier 3 and below

Higher Discount Offer 27% 26% 26% 32%

Lower Discount Offer 11% 10% 11% 7%

The campaign looks interesting 36% and attracts me 39% 44% 44% The campaign mechanism is too complicated to participate 24% 23% 23% 14%

Promotion is straightforward 26% 26% 26% 29%

Promotion is complicated 25% 27% 24% 17%

More integration of offline and 15% 15% 15% online 16%

Not much difference 14% 13% 11% 14%

Data source: Q: What do you think about Singles' Day regarding to price and promotion comparing with last 70 year? (multiple choice)(n=1,000) Most shoppers place order on Nov 11th, and prefer a shorter pre-sale period

41% shoppers place order on Nov 11th to lock the best deal Shorter period of online fest is preferred Time to place order 74% 41% of shopper think the Singles' Day Festival lasts too long 34% 28% 11% Ideal span of Singles' Day

“One week is enough” 47%

21% “Around two or three days” Pre-selling kickoff pre-selling period After party 6% “Only one day will be perfect” 10/20 11/11

Data source: Q: When will you place order or subscribe the product?(n=1,000) 71 Q: Do you think Singles' Day should be longer or shorter?(n=1,000) Regular price is the most important benchmark for price comparison Tier 1 shoppers would take more factors into account, like offline price and official price overseas

Price comparison

Regular Price

Data source: 72 Q: Which price will you compare with this year Singles' Day?(n=1,000) Three out of four shoppers calculate discount and expect 10%-30% price cut Tier 1 shoppers as more experienced ones expect deeper discount

75% shoppers calculate the discount Tier 1 expects deeper discount

Calculate discount or not Discount expectation

Will calculate Tier 1 New Tier 1 Tier 2 Tier 3 and below Don’t care about actual accurately discount, just buy it 53% 20% 11%

14% Will roughly Will follow other calculate people’s recommendation 55% or discount tips

10%-20% 20%-30% 30%-40% 40%-50% 50% and above Lower than Lower than Lower than Lower than Lower than regular price regular price regular price regular price regular price

Data source: Q: Since the campaign is getting more and more complicated, will you calculate the final price by using different promotion ways? (n=1,000) 73 Q: At what price cut degree will you place an order? (n=1,000) Top Selling List is the most impactful source, followed by Social Media and Friends Recommendation

Information source during Singles' Day

63% 46% 43% 23% 23% 20% 19% 17% 13%

Top Selling Social Friends/ Content Video Short Video EC Shopping Physical Live List of EC Media Colleagues/ Family Platform Platform Platform Guide Platform Store Platform Platform Recommendation

Data Source: Q: Through which media information source do you get Singles' Day relevant campaign/ product 74 information? (Multi-choice) (n=1,000) Media source preference varies in different city tier

Tier 1 New Tier 1 Tier 2 Tier 3 and below

• iQIYI is the most 94% 95% 91% 91% popular video platform cross city tiers 42% 36% 26% 26% • Tencent Video and 38% 25% 26% 26% Bilibili have greater Video Platform Video impact on Tier 1

• RED and Zhihu are 74% 76% 77% 81% main content media source 60% 55% 58% 46% • Zhihu is more popular in Tier 1 and RED in 45% 42% 35% 35% Tier 3 and below • Communities like 16% 16% 18% 25% Babytree and Bevol Content Content Platform are influential in Tier 9% 15% 15% 19% 3 and below

85% 78% 92% 77% • Tik Tok and Kuaishou are 48% 46% 63% 52% important, especially

in Tier 2 . Platform

Short Video Short Video 火山小视频 38% 36% 32% 36%

Data Source: Q: Which video platform APP did you use to get information? (Multi-choice) (n=231) Q: Which content platform APP did you use to get information? (Multi-choice) (n-227) 75 Q: Which short video platform APP did you use to get information? (Multi-choice) (n=197) Taobao content: shoppers from upper tier cities are more engaged in Singles‘ Day relevant section (双十一合伙人, 双十一主会场)

Tier 1 New Tier 1 Tier 2 Tier 3 and below

双十一合伙人 双十一合伙人 双十一合伙人 双十一合伙人 56 53 50 43

双十一主会场 81 双十一主会场 71 双十一主会场 72 双十一主会场 72

微淘 21 微淘 25 微淘 29 微淘 23

Data Source: Q: During Singles' Day, which section did you browse on Taobao APP? 76 (Multi-choice)(n=852) Taobao content: Discount section (淘抢购,聚划算) are more popular in low tier cities

Tier 1 New Tier 1 Tier 2 Tier 3 and below

淘宝头条 68 淘宝头条 59 淘宝头条 63 淘宝头条 67 淘抢购 有好货 淘抢购 有好货 淘抢购 有好货 淘抢购 有好货 31 31 31 26 35 29 38 32

聚划算 淘宝直播 聚划算 淘宝直播 聚划算 淘宝直播 聚划算 淘宝直播 49 31 51 27 50 25 55 32

哇哦视频 每日好店 哇哦视频 每日好店 哇哦视频 每日好店 哇哦视频 每日好店 7 20 3 22 3 26 3 26

Data Source: Q: During Singles' Day, which section did you browse on Taobao APP? 77 (Multi-choice)(n=852) JD content: Singles‘ Day relevant section outperform in upper tier city while Seckill enjoys high engagement in lower tier cities

Tier 3 and below Tier 1 New Tier 1 Tier 2

双十一主会场 双十一主会场 双十一主会场 双十一主会场 60 53 49 47

京东快报 28 京东快报 19 京东快报 29 京东快报 37 京东秒杀 发现好货 京东秒杀 发现好货 京东秒杀 发现好货 京东秒杀 发现好货 48 28 47 42 43 31 63 37

品牌/品类秒杀 会买专辑 品牌/品类秒杀 会买专辑 品牌/品类秒杀 会买专辑 品牌/品类秒杀 会买专辑 29 14 36 11 26 9 47 5

Data Source: Q: During Singles' Day, which section did you browse on JD APP? 78 (Multi-choice)(n=148) Key takeaways

• Tier 1 shopper profile: well planned in advance, rational consumption, driven by product quality, purchase oversea. Treat Singles’ Day as Top-up trip • New tier 1 shoppers show similar shopping behavior with ones in tier 1, featuring high plan level and rational attitude for big fest • Shoppers in Tier 3 and below cities are more price driven and engage with platform closely

• Apparel and personal care are top categories during Singles’ Day • Stock-up and high-end product purchase are the main triggers • NPD and innovation also win attention from shoppers

• Majority of shoppers plan in advance and hold up spending before and after Singles' Day • In the meanwhile, most of shoppers prefer shorter period of Singles' Day and one week is long enough

• Top selling list which is promoted heavily this year becomes the most important information source, outpacing social media and friends recommendation • Singles’ Day content section and seckill are the most efficient touchpoints to shoppers in Tier 1 and Tier 3 and below cities respectively

79 As a brand— • Did you take shopper needs from different categories into consideration? Did you customize your product portfolio based on their needs of stocking up, NPD or price deduction?

• How to minimize the negative impact on daily sales through optimized product portfolio?

• Did you customize strategy for different city tiers’ shoppers, especially media ones?

• When is the best timing to kick off Singles' Day marketing campaign?

• Did you leverage the power of WOM and KOL recommend in advance to make your brand listed on shopping list?

• Did you join customers’ Top Selling List? Any room of improvement for both product content and EC content section?

• What’s the difference of content during Singles’ Day period? How to optimize media investment accordingly?

80 Thank you!

Kantar Consulting O2O Whitepaper will be released soon. We will share the exciting insights for O2O market. Stay tuned!

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