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The new normal: Silver economy shines brightly as Singles' Day 2023 approaches
Gone are the days when brands and retailers could rely on
key opinion leaders (KOLs) and flashy livestreaming shows
to emotionally hook consumers into purchases. Two years
after we named livestreaming a necessity to get shopper
attention, the format finished 19th in a list of 20 factors
consumers consider when selecting products. Only KOL
recommendations finished lower.
In 2023, the more knowledgeable consumer is less easily
influenced by promotional tactics, meaning retailers and
brands must double down on demonstrating the key product
differentiators and benefits that the competition does not
offer. They must emphasize product functionality, quality,
and safety-along with overall brand trustworthiness,
authenticity, and reputation-to best connect with the
"rational shopper." Carefully targeting marketing tactics at
specific audience segments, through the right channels and
with the right content, will yield the greatest returns.
For example, within the beauty category, consumers care
much more about a product's ingredients, sourcing, and
environmental impact than its brand name. Savvy retailers and
platforms will bake this type of messaging into promotional
efforts, shifting to meet evolving consumption patterns.
Chinese cosmetics company Proya is a prime
example, applying a distinct focus to developing
core functional ingredients that are exclusive to
the brand and effectively communicating this
unique selling point to its growing customer base.
EMPHASIZING PRODUCT FUNCTIONALITY, QUALITY, AND SAFETY WILL
BEST RESONATE WITH THE RATIONAL CONSUMER
FIGURE 4: CONSUMERS ARE INCREASING THE IMPORTANCE OF PRODUCT FUNCTIONALITY WHEN
CHOOSING BETWEEN BRANDS
Survey question: Please indicate the importance of each of the following criteria when selecting what product/brand to buy? (% who checked top-2 box)
Source: AlixPartners China Singles' Day Survey 2023 (N=2,150)
45%
46%
52%
55% 59%
61%
63%
65% 69%
71%
72%
72%
72%
75%
75%
77% 80%
80%
82%
83%
Recommendation by KOL
Livestreaming/live product videos
Cross-brand collaboration
Freebies
Brand origin
Recommendation by friends/family etc.
Trending/fashionable
O2O integration
Product innovation (new products/experiences)
Sustainability considerations
Speed of delivery
Product design (including user friendliness)
Price discounts/low product prices
Service level
Product online reviews
Brand reputation and values
Product safety and traceability
Product materials and quality
Product functionality (including durability)
Authenticity and trustworthiness