Now It Gets Interesting

Amazon

Not content with the established big national and religious holidays being turned into major shopping events retailers over time have invented their own calendar of shopping holidays that no one asked for or really cares about..

Undoubtedly the most successful of these recently has been ‘singles day’. This self-created day has been taken to epic proportions by China’s Jack Ma’s Alibaba.

What began in 1993, as a student led anti-Valentine’s Day at Nanjing University, situated in the capital of Jiangsu province in Eastern China, where single people could buy things for themselves has become a gigantic consumption event.

Alibaba embraced the concept to boost sales it has now become the World’s biggest online retails sales day. It compares with “Cyber Monday” in the US, the Monday after Thanksgiving, which is also marketed as a big online shopping day.

Here are the Alibaba ‘Singles Day’ numbers.

In November 2014, Alibaba rang up record sales of $9.3 billion dollars from “Singles Day” yes that right $9.3 Billion in 24 hours.

Nearly all the 30,000 merchants on the internet retailer’s platform offered discounts the 2014 event attracted the participation of more international brands a well including Japanese label Muji, Spanish clothing retailer Desigual and American outdoor clothing label The North Face.

That 24 hours trading resulted in 278.5 million packages in transit through China. Jack Ma himself appeared to reporters to say the logistics of delivering these packages made him nervous.

To find out more about singles day watch this video

 

So enter the latest ‘Prime Day’

Slated for today Wednesday July 15.

This time by Amazon. Ostensibly to celebrate Amazon’s 20 year birthday and for the now ubiquitous 24 hour period only.

Billed by Amazon as bigger than Black Friday with deeper discounts and new deals being released every few hours. Its point of difference is that it’s only available for Amazon Prime subscription service members and in only 9 countries.

In normal times that would be that.

But we don’t live in normal times.

We live in a dog eat dog fight in omni channel retail. So enter Walmart to the party. Raining of Amazons parade – or at least trying to.

It is launching 2,000 exclusive roll backs, across categories such as electronics, baby, home and toys and it will last for 90 days. In addition to these Walmart promises some ”atomic deals”

Walmart

Perhaps a year ago Walmart could have ignored this Amazon move but not today. With its stock having lost some 23% of its value since January 2015, it needs The Street to know that it’s still an Amazon fighting force.

Amazon meanwhile is perusing its own strategy. Whilst it is notoriously fugal with its sales and customer data. It is not too difficult to see the Amazon Prime strategy at work here, on Prime Day.

Signing on more Prime members. According to non Amazon sources 45% of Amazon customers in the US have signed onto Prime. That’s some 40 Million and that’s nice but this is even nicer…

Amazon prime members spend more than double non-members.

Happy Birthday indeed.

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