On Nov. 11, 2013, China, Tmall set up a big sale activity, it’s called the 11.11 shopping festival. What started four years ago as a garden-variety marketing effort by Tmall.com (part of Alibaba Group), China’s largest B2C e-commerce platform, to help online merchants increase sales. On that day, and only for that day, Tmall offer discounts of at least 50% on a wide array of products.We see from the first minute, there are 10 million people get on the Tmall’s website starting to make deals. At the tenth minute from start, the deal was achieve 250 million, equals 40 million USD. At 0:37:39, the Tmall 1111 Shopping Carnival payment Po transactions exceeded 10 billion. In addition to the birth of three ten million shops, three camels, GXG, Jack Jones, merchant sales exceeded 10 million, respectively. At 0:00:00 in Nov. 12, the total transactions was 19 billion. Before the 11.11 festival, the demand is inelastic, on the 11.11, the demand is elastic. Customer thought that they get lots of benefit through this big shopping festival, but I think it is not that beautiful as it looks like.
First, due to the low price, people don’t want to lose this chance and want to buy more. But actually, people will buy more things that they don’t need. For example, one skirt looks okay, but not perfect, just because the price is much lower than before, girls will buy it. And the more people did like this, the more deals the sellers had.
Second, there is business cheat. Some stores raised the price before this shopping festival start and cut it in half when the festival start to pretend that the goods were really lower more. We can see that the price is 388.00 original, and people should pay 280.00. On 11.11, the price was raised to 678.00, and cut it in half is 399.00. (The sale price 429.85 in the second picture is the price after 11.11.) So the price during the shopping festival (339.00) is higher than this clothes’ usual price (280.00). So people thought they get benefit through this shopping festival, but in the fact, they paid more than before.
Third, on this kind of shopping festival, sellers tend to show customers the old styles and want to sell more goods in the inventory. So the goods people bought may not be the newest styles.