With a turnover of 498.2 billion yuan, this year’s Double Eleven set another record.
In the early morning of November 12, Taobao Tmall President Jiang Fan revealed that according to the same cycle and the same caliber, the GMV during Double 11 this year increased by 103.2 billion compared with the same period last year, a growth rate of 26%. This is the highest growth rate in the past three years.
Jiang Fan said that Double 11 is the result of the participation of the entire social economy.
In this set of data, it is even more noteworthy that 474 brands with a turnover of over 100 million, of which 60% of the brands, grew faster than the same period last year. When the first round of sales started on November 1, 357 new brands became the first in the segment.
From the “Singles Day” to the global carnival, and then to the “nunchaku”, the turnover has increased from 52 million yuan in 2009 to 498.2 billion yuan this year. Tmall Double Eleven has spent 12 years.
But the GMV numbers are just appearances. By this year, the digital business picture presented on Double Eleven is completely different from that of 2009. Most of the browsing and clicking on the PC side has been condensed on the smartphone screen, and the number of orders created per second can reach up to 583,000 times. The live broadcast with millions of sessions took place at the same moment. At the end of the countdown to the host’s “Three Two One”, snap-ups and shipments took place from the north to the south; the concept of e-commerce shifted, and the distinction between online and offline was gradually Replaced by new retail.
Changes are happening faster and faster, making it easy to overlook how changes happen.
The essence of DT is that everything is the Internet of Things, everything is counted, cloud, management, and end are integrated, and business is no longer divided into traditional industries of the Internet and non-Internet. Standing today and looking at 12 years ago, the background of the birth of Double Eleven is the preface of the digital economy.
On January 7, 2009, the Ministry of Industry and Information Technology issued three third-generation mobile communication licenses for China Mobile, China Telecom, and China Unicom. The signal of the arrival of the 3G era triggered widespread discussions on “Internet users will become cyborgs”. The first Tmall Double Eleven was triggered by a whim during this period.
Zhang Yong, Chairman and CEO of Alibaba Group, created the first Double Eleven. He once said: “Think about how to use new things to solve future problems and create opportunities for customers. This is the beginning of innovation.”
Perhaps in the first one or two years of its start, Double Eleven still has contingency, but in its growth process, it also contains a certain gene of certainty. The countless new categories that can be seen this year, designer brand clothing, agricultural products, imported health products, and even cars, real estate, hot pot or flowers that can be delivered within 30 minutes, may be the first batch of e-commerce sellers Speaking of online channels into the overall budget; after the pre-sale, the package that quickly sinks to the nearest logistics network may start with an electronic face list.
Deeply digging into the logic of changes in Double Eleven in 2020, you will find that this festival has witnessed the structural evolution of Chinese business towards digitalization.
The cloud behind the peak on Double Eleven
Just after midnight on November 11, the first data released by Tmall was no longer the node where GMV broke 100 million, but gave a peak order creation-583,000 transactions per second. Behind this figure reflects the support provided by cloud computing under large-scale orders.
The arrival of the largest traffic peak benefited from the full cloud nativeization on the technical side. In 2019, Tmall Double Eleven achieved “100% of the core system on the cloud”, which means that this year’s Double Eleven has completely run on the cloud.
Alibaba has been deploying cloud computing since 2009. In 2015, Zhang Yong publicly stated that cloud computing is “the most important project currently in the Alibaba Group” and will continue to invest in cloud computing projects in the future. Alibaba Group’s 2021 fiscal second quarter results show that Alibaba Cloud’s quarterly revenue was 14.9 billion yuan, an increase of 60% year-on-year, and the pace was significantly ahead of Amazon’s AWS and Microsoft’s Azure during the same period.
“Ali has a saying called’crawler development’, that is, we always work for today, invest for tomorrow, and incubate for the day after tomorrow.” Zhang Yong revealed on the Ali Investor Day in September that Alibaba usually takes 8 years In 10 years, concentrate on incubating new businesses. Alibaba Cloud has reached its 11th year.
The “2020 Cloud Computing Development White Paper” of the China Academy of Information and Communications Technology shows that in 2020, cloud computing will still usher in the next golden decade and enter a period of inclusive development. The survey found that more than 50% of companies use cloud computing to reduce costs and increase efficiency, and over 40% of companies say that they use cloud computing to improve IT operating efficiency. The reduction in IT operation and maintenance workload and the increase in security accounted for 25.8% respectively. And 24.2%.
The effect of full cloud nativeization was reflected in this double eleven. When the peak of order creation this year came, the order experience was as usual, and very few people even said that there was a feeling of lag. Ali also disclosed that the resource cost of 10,000 transactions has dropped by 80% compared to four years ago. Cheng Li, chief technology officer of Alibaba Group, said that Double Eleven this year is a brand new starting point. “Responding to peak transactions is no longer the biggest challenge. The technical challenge of Double Eleven has entered a new historical stage-to improve the business efficiency of the entire industry chain through technological innovation.”
The mobile phone Taobao revision on the eve of Double Eleven is also a topic that has attracted much attention. When the first screen is opened, the information flow section “guess you like”, and the intelligent product flow that is more in line with the habits of young users becomes the core.
In fact, since 2013, wireless personalized recommendations have become the focus of Ali. By 2014, personalized recommendation algorithms have been widely used in various must-go shopping scenes such as “discover a good store”, “love shopping”, and “guess you like”. “Guess you like it” has also become the largest recommended product among Chinese e-commerce companies.
This is related to Ali’s perception of the relationship between “people”, “goods” and “field”. Zhang Yong has repeatedly emphasized that commerce is moving from goods-centric to human-centric, and content is a bridge. Merchants, celebrities, and talents in the Ali e-commerce ecosystem are essentially content producers. They do not produce goods themselves, but produce lifestyles.
On Double Eleven in 2016, mobile Taobao realized personalized algorithm support for all event pages, and for the first time realized large-scale online deep learning and reinforcement learning and other cutting-edge technologies, and the turnover increased by more than 20%.Another important content section is live streaming. Looking at the high ground where the traffic of the entire industry gathers, live broadcast e-commerce deserves it.
The heat wave came before Double Eleven. In 2016, Taobao Live Broadcast was born, and gradually brought the trend of live broadcast e-commerce. In the past year, Douyin, Kuaishou, Tencent, Pinduoduo, etc. have increased their efforts to live broadcast e-commerce. According to the company’s data, there are currently 47,500 live-streaming related market entities in my country, and 4,237 live-streaming e-commerce market entities. This year, the number of registered live-streaming e-commerce entities has exceeded the sum of the past ten years.
Taobao Live has begun to build an ecosystem including Daren Live, Merchant Live, MCN, Brand Agency, Live Supply Chain Service Providers, etc., and the consumer base, goods, marketing, logistics, cloud computing, etc. of the Ali China retail platform The basic ability produces new chemical reactions. This year’s Taobao live broadcast list shows that in the live broadcast from the evening of October 20th to the early morning of October 21 (the pre-sale date of Double 11), Taobao anchors Li Jiaqi and Wei Ya’s live broadcast rooms have cumulative views of 162 million and 148 million people. From 0:00 on November 1st to 12:00 on November 11th, there were 28 live streaming rooms with Taobao live streaming transactions exceeding RMB 100 million. Business launches have also become a standard operating method, and even a professional third-party agency ecology has been created.
“OMG, buy it” and “3, 2, 1, up-link” are also supported by technology bases such as cloud computing and artificial intelligence.
For example, interactivity is one of the core experiences of live broadcasting. As soon as the anchor’s voice is dropped, the audience can snap up or chat; at the same time, the picture quality should be good, clear and detailed. Taking into account the experience of no delay and no lag, it puts forward extremely high requirements on technical protocols and network transmission algorithms. Taobao Live’s “narrowband HD”, large-scale low-latency technology calmly responded to this challenge.
Participating merchants on Double Eleven are not only e-commerce, but also live broadcasts and information flow recommendations are not only online. Ali’s new retail businesses, such as Ele.me, Fliggy, and Intime, are all advancing content. Live food delivery and live “cloud travel” are becoming increasingly popular among consumers.
Logistics acceleration of electronic face sheets
As of 23:00 on November 11, the real-time logistics orders for the 2020 Tmall Double 11 global carnival season exceeded 2.25 billion, which is approximately equal to the total volume of China’s express delivery in 2010. Tmall double 11 logistics orders started from 260,000 to 2.25 billion orders and has increased nearly 9,000 times.
Behind the 2.25 billion is the global participation of 250,000 brands, 5 million online and offline businesses, more than 100 industrial belts, more than 16 million products, and 800 million consumers.
Zhejiang University Zijingang became the world’s first pure robot delivery university on Double Eleven. The robot delivered more than 30,000 orders, the delivery punctuality rate exceeded 95%, and it saved more than 10,000 hours of pickup time.
On the other hand, the average sign-off time for Tmall Double Eleven orders in 2020 has generally increased by about one day compared to 2019. Tmall Double Eleven rookie commander-in-chief Sun Jian introduced that express delivery has become the consensus of most consumers, and this is a change brought about by digital logistics. China logistics has been upgraded from the digitization of parcels to the digitization of all links and processes.
In July 2014, Cainiao launched the electronic face sheet, and started large-scale application on Double Eleven in the same year. The electronic face sheet can open up the information flow of all links, connect all operation processes through data, and improve operation efficiency. The double eleven package with an electronic face sheet is equivalent to creating a “wind tunnel” for digital logistics testing.
After 7 years of development, every package of China Express has a “digital ID”. It is not difficult to see the promotion value of electronic face sheets to the industry from the time of receipt. In 2013, it took 9 days to sign for 100 million packages on Double Eleven, and the speed increased to 3.5 days in 2016.
This year, the terms “payer” and “consignee” have become popular. Orders placed at night and early morning deliveries have become the norm. Taobao Tmall President Jiang Fan said that in 2020, Tmall Double Eleven express delivery time will increase by 2 to 3 days on average.
Now, logistics has begun to move rapidly towards the digitization and intelligence of the entire link of hubs, vehicles, terminals, and couriers. New technology applications such as unmanned warehouses, unmanned vehicles, and IoT sensorless pickup are becoming more popular.
Sun Jian said, “These digital logistics facilities have also been broadcast live to the world for the first time this year. In the past Double Eleven, logistics was hard work, but now there are ‘black technologies’ everywhere.”
The automation level of the industry has been gradually improved. In the express delivery link, the total length of automatic assembly lines of major express companies exceeds 6000 kilometers, achieving nearly 100% automated coverage.
Robots can help warehouse staff pick goods. Cainiao’s unmanned warehouses are distributed in Tianjin, Guangzhou, Shanghai, Wuxi, Jiaxing, Chengdu, Wuhan and other places. The number of steps taken by pickers in a day has been reduced from more than 20,000 to more than 2,000, but the efficiency of picking has doubled the above.
In addition, the dazzling performance of import consumption on Double Eleven this year is closely related to cross-border logistics capabilities.
From November 1st to 11th at 12 noon, the turnover of Tmall international imported goods increased by 47.3% year-on-year, of which 180 overseas brands had a turnover of over 10 million. The basis for goods to move is smooth logistics.
Affected by the overseas epidemic and the international logistics capacity has been impacted, Cainiao’s overseas eHub is still operating around the clock. In half a month, there are more than 700 all-cargo planes and other flights to undertake transportation, which has become a major vessel for ensuring the flow of imports and exports. . In the import bonded area, the Cainiao customs platform is connected to 22 ports of customs in 15 places, which can realize customs clearance in seconds, and release 10 million packages in more than 6 hours.
Digitalization goes upstream
While accelerating toward consumers, digitalization and supply chain reversal have also become an inevitable trend.
A steady stream of new brands stand out on the platform. Their rise is closely related to the understanding of supply.
Pan Pan, the managing partner of Tiantu Investment, once said that some new brands can basically achieve annual sales of more than 1 billion yuan within 3 years, and maintain an annual growth rate of 50%-100%. Rarely on the entrepreneurial track. For new brands, data capabilities are very important, which is the foundation of consumer research and analysis applications; the core asset is “super user accumulation.”
From November 1st to 11th at noon, the cumulative turnover of 16 new brands on Tmall Double 11 has exceeded 100 million yuan: Perfect Diary, Huaxizi, Ubras, Tianke, Jiaonei, Bester, Realme, Runbai Yan, Fu Erjia, usmile, colorkey, Xiao Aoting, three and a half times, adopt a cow, cloud whale, etc.
If the Tao brand is called a “net student brand”, the new brands that are emerging now are native brands that started out as digital consumer operations. Therefore, where is the closest to consumers, where is the best place to guide supply, especially product entry, and therefore the best place to incubate new brands.
New manufacturing first appeared on Double Eleven and reflected the changes in a deeper level. It is reported that a group of Tmall clothing merchants put on the shelves of IP co-branded clothing without stocking them in advance. This is a bit “uncommon sense” for the big promotion.
However, these merchants can place an order on the new manufacturing platform “Rhino Smart Manufacturing” based on the pre-sale situation, and “sell and produce immediately” within 7 days.
Pre-sale is a common practice on Double Eleven in recent years. On Double Eleven in 2012, this mechanism appeared on Tmall for the first time.
Why not do daily sales? Tmall’s answer is that it has provided meaningful guidance for merchants’ product selection planning in the early stage of Double Eleven and improved the efficiency of stocking and storage.
This is in fact the earliest exploration of C2B. It is the most intuitive indicator to allow consumers’ demand to guide supply in the opposite direction, and to predict how much a big promotion can sell through pre-sales. After the first double eleven in 2009, the first double eleven was unexpectedly happy, the following year double eleven merchants began to take the initiative to stock up; in 2011, there were already brands that began to plan goods specifically for e-commerce channels. From “what consumers buy” to “what consumers need”, it is a systematic transformation of business thinking and supply chain capabilities that requires day-to-day efforts.
In September of this year, Rhino Intelligent Manufacturing was launched, and the budding of C2B was C2M. In the Rhino manufacturing model, the elements of factory production can be fully clouded, one end is connected to the consumption analysis on the platform, and the other end organizes the production, which can shorten the industry’s average order of 1,000 pieces and 15 days delivery to 100 pieces. Order, 7 days delivery.
This will realize the overall optimization of resources such as demand, design, research and development, production, supply chain, etc. It can realize small orders and rapid response. Small and medium-sized sellers are directly beneficial to the crowd.
Driven by new technologies, the digital upgrade on the supply side is deepening, and the boundary between the service industry and the manufacturing industry is being broken.
The potential of China’s hyper-scale market and the development of the digital economy have made Double Eleven on the wave. Behind the ever-increasing turnover figures, we can see the potential energy of the tide and the echo of early exploration. We have seen the rise of the live broadcast ecosystem, digital products delivered by outbound riders, IoT devices and robots used in logistics scenarios, and a more flexible supply chain… From this year’s Double Eleven, maybe The glimpse is the beginning of the next twelve years.
article links：From 2009 to 2020, Double Eleven before the tuyere
Reprint indicated source：Spark Global Limited information