Personal recommendation: Big data observation of Double Eleven 2018

At 24:00 on November 11, 2018, Tmall's transaction volume reached 213.5 billion, breaking the record again. The past ten years of Double 11 have seen the rapid rise of China's e-commerce and a dramatic change in residents' consumption patterns. As the Internet enters the stock era, deepening vertical fields and consumer stratification have become the new themes of this year's Double 11 for e-commerce companies.

The overall penetration rate of e-commerce apps continues to rise, and overseas shopping apps are emerging

According to data analysis by the Getui Big Data Center, the overall penetration rate of e-commerce apps in 2018 increased from 21.9% to 25.8% compared with 2017. The trend of Double Eleven consumption shifting to mobile terminals has further strengthened, and at the same time, it has shown the characteristics of segmented consumer preferences: in the vertical e-commerce field, during the Double Eleven period in 2018, the overall penetration rate of overseas shopping e-commerce apps represented by NetEase Kaola and Xiaohongshu increased by 104.8% year-on-year, while the overall penetration rate of maternal and child apps represented by Beibei and Miaya and trendy clothing apps represented by Mogujie and Chuchujie declined.

It can be seen that in the context of the aftermath of the Sino-US trade war, Chinese consumers' enthusiasm for imported goods remains unabated. During this year's Double Eleven, the average daily usage time and opening frequency of overseas shopping apps by mobile phone users increased significantly compared with 2017, reaching 19.7 minutes and 7.3 times respectively. Overseas shopping e-commerce apps are increasingly controlling user attention and stickiness.

In terms of the composition of overseas shopping app users, female users account for as high as 78.5%, which shows that female users prefer foreign products. In terms of age distribution, users are younger: the proportion of users aged 34 and below is as high as 90.1%.

Due to the fact that consumers in first- and second-tier cities are more sensitive to information about foreign goods and factors such as convenient transportation, users of overseas shopping e-commerce apps are mostly concentrated in first- and second-tier cities and have high consumption levels.

From initially buying milk powder from overseas for children to buying good things for the whole family, behind the rapid development of the cross-border e-commerce industry chain is the huge demand for consumption upgrades among the middle class represented by white-collar workers in first- and second-tier cities. According to public data released by NetEase Kaola this year, on this year's Double 11, the sales volume of the Kaola platform exceeded the full-day sales volume of "Double 11" in 2017 in just 78 minutes.

In contrast to the rise of overseas shopping apps, social e-commerce represented by Pinduoduo has continued to penetrate into third- and fourth-tier cities and even rural areas, and has quickly seized a huge market share with its low product prices and close social relationships. The "niche consumption of white-collar workers" and the "low-end shopping malls of aunts" formed the unique landscape of the e-commerce industry on Double Eleven in 2018.

Pinduoduo's explosive growth and Taobao's market decline

Pinduoduo's rapid rise has made it a phenomenal e-commerce platform in 2018. As of November 2018, Pinduoduo's penetration rate has soared by 278.5% year-on-year compared to 2017. The average daily usage time of users has increased from 11.6 minutes in 2017 to 32.4 minutes, an increase of 178.4%. The average daily frequency of users opening the app has also reached 8.8 times, an increase of 88.7% year-on-year. As early as 2014, Taobao proposed a rural strategy and began to focus on the sinking market. However, judging from the data of this year's Double Eleven, the proportion of Taobao users in the third- and fourth-tier markets and below has not yet surpassed Pinduoduo.

In terms of user sources, in 2018, Pinduoduo's users came from third- and fourth-tier cities, accounting for 59%, while Taobao's was 53.3%, slightly lower than Pinduoduo. However, the data also shows that Pinduoduo is also trying to expand into the high-end market. In 2018, Pinduoduo's users in first- and second-tier cities increased by 2.5% compared with 2017. Taobao, which is trying hard to sink, and Pinduoduo, which is constantly moving upward, will stage a fierce "fight" in the "outside the fifth ring market". Compared with first- and second-tier cities, third- and fourth-tier cities and rural markets have unique business logics. In these markets, more attention is paid to social attributes and circle culture. The proportion of users over 45 years old and under 17 years old on Pinduoduo is higher than that of Taobao, with obvious decentralized characteristics.

From the proportion of overlapping users of Taobao and Pinduoduo, it can be seen that in 2018, 44% of Taobao users had also installed Pinduoduo, while in 2017, the proportion was only 17.7%. Pinduoduo is rapidly penetrating Taobao users, and the competition between the two e-commerce companies is bound to become more intense.

The Double Eleven carnival has become a microcosm of the changes in consumer demand. With the diversification and stratification of user needs, the domestic market is also accelerating on the road of consumer stratification. Today, the innovation of the e-commerce landscape is to cater to the satisfaction of user consumption behavior. The rise of vertical e-commerce and Pinduoduo have all keenly grasped the needs of consumers. For the changing market and new consumer groups, the e-commerce landscape has also begun to change.

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