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S’pore retailers hopping online to be part of 11/11 Singles’ Day sales

SINGAPORE — Retailers and smaller mom-and-pop stores in Singapore are jumping on the bandwagon for Singles’ Day, a Nov 11 online shopping mega sales fest that is one of the biggest days in China’s retail calendar.

The owners behind Singaporean business Mighty Velo — which sells foldable bicyles — are taking the leap to drive business online after a visit to e-commerce giant Alibaba’s headquarters in Hangzhou, China in 2016. Photo: Mighty Velo

The owners behind Singaporean business Mighty Velo — which sells foldable bicyles — are taking the leap to drive business online after a visit to e-commerce giant Alibaba’s headquarters in Hangzhou, China in 2016. Photo: Mighty Velo

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SINGAPORE — Retailers and smaller mom-and-pop stores in Singapore are jumping on the bandwagon for Singles’ Day, a Nov 11 online shopping mega sales fest that is one of the biggest days in China’s retail calendar.

Businesses are optimistic that there will be a sales surge this weekend and hope that the event — which has become a bigger phenomenon than Black Friday sales after Thanksgiving Day in the United States — will catch on with consumers here.

There are no comprehensive figures on the number of retailers here taking part, but industry players said that they are either operating independently, or partnering with larger e-commerce players such as Lazada to sell their products.

Singapore company Mighty Velo, for example, is planning to offer discounts on Saturday (Nov 11) and Sunday. After more than a decade in business selling foldable bicycles, this is the first time the shop along Lavender Street is offering a storewide 20 per cent discount for online customers.

The owners of Mighty Velo — Singaporean Vivian Yuan, 47, and her husband — are taking the leap to drive business online after a visit to e-commerce giant Alibaba’s headquarters in Hangzhou, China last year. “At that time, (Alibaba) was gearing up for its Singles’ Day sales. There was so much hype and preparation put into it — almost like a Michael Jackson event,” she recalled.

“I’m optimistic that (the discounts) will bring more sales, but at the same time, I don’t think we have a choice as well. If you don’t start adapting, you’ll be left behind,” Ms Yuan said, referring to consumers turning more to online shopping.

After her China visit, she decided to set up an online portal, and now, to be a part of the 11/11 hype.

Another Singapore retailer drawn to the huge sales potential of Singles’ Day is Happy Socks Avenue in Suntec City. It snagged the distributorship to sell socks from the Swedish brand, and is also offering discounts for the first time in conjunction with the day.

The company’s founder, Mr Mack Chua, 45, said: “We are expecting the 11/11 sales to bring in revenue equivalent to about S$15,000 to S$20,000, which is what a brick-and-mortar store can net in a month.”

Mr Chua is one of about 5,000 sellers who run physical stores hawking lesser-known brands in Singapore that have partnered Lazada for its “Online Revolution Sale”, which is offering promotions to tie in with Singles’ Day.

DWARFING BLACK FRIDAY SALES

Dubbed the world’s biggest online shopping bonanza, Singles’ Day originated as a counter to Valentine’s Day. Alibaba pushed it into the spotlight, having started with just 27 merchants for the event in 2009. This year, there are reportedly 140,000 brands offering more than 15 million products.

Last year, retailers on Alibaba’s platforms recorded US$17.8 billion (about S$24 billion) in sales, up from US$14.3 billion in 2015. The figure is expected to break the US$20 billion mark this year.

News agencies and sites also reported that last year, the sales on Singles’ Day eclipsed the US$2.74 billion generated online during Black Friday sales in the US and the US$3 billion sales on Cyber Monday.

Observers here noted that Singles’ Day is becoming a global event that is no longer about China or unmarried people.

Retail analyst Samuel Tan from Temasek Polytechnic’s School of Business told TODAY: “More local retailers are coming on board for the event… it is certainly getting more attention outside of China, with the success of 11/11 garnering much news coverage in the media. Singaporean shoppers are already acquainted with shopping during the same event, from overseas online sites.”

Mr David Lee, senior business consultant and lecturer from the Singapore Institute of Retail Studies (SIRS), noted that Alibaba has raised its game. 
“In previous years, Alibaba was inward-looking, hoping to sell goods in its country. But now, for the first time, Alibaba is looking to businesses outside China, even as far away as Germany, to be immersed in the full Nov 11 campaign.”

Along with this, its theme for Singles’ Day this year is “Global Shopping Festival”. “This is coupled with a ‘new retail’ strategy of selling online and offline,” he said.

This move to sell goods concurrently in physical and online stores is not lost on retailers here as well.

APPEAL TO DIFFERENT SHOPPERS

Mimosa, a brand selling women’s shoes at various outlets in places such as Parkway Parade and Far East Plaza, will be offering Singles’ Day discounts for the first time, for its shoes on Lazada’s platform. Its founder Ong Soon Keat, 41, said that the shop would also be having “in-store discounts” throughout this weekend.

On why it is good to have an online presence, he said: “We notice that for the same model of shoes, sometimes it doesn’t sell well in store, but it sells well online... so having two channels really help to capture a wider customer base.”

He expects sales over these few days to be “three to five times that of normal daily sales”.

Mr Tan from Temasek Polytechnic said that retailers are hopeful with good reason: “Some online stores are already offering good buys to entice shoppers. Together with the trend of shopping online, sales projections could be optimistic.”

On the other end, will shoppers cash in massively on the sale event? A survey of some 800 consumers done by retail portal ShopBack showed that this year, Singaporeans are prepared to spend up to an average of S$200 on Singles’ Day.

The survey also found that for online stores, brand familiarity appears to be a more important factor than low prices for customers.

Apart from focusing solely on sales earnings, business owners should try to use a notable sales event such as this to create “a relationship with new customers”, retail analysts said.

Mr Lee from SIRS said: “Nov 11 is not just about driving revenue, retailers should also aim to capture new customers, build a relationship, so this growth will continue next year.”

Related topics

Singles Day online shopping

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